Brand value increases across categories

Part 4 | The Fast Growing Markets
Insight
International retailers
wait at open door
India remains a country of small
shopkeepers. But it’s evolving, with
the approval of foreign direct
investment in organized retail last
year. The law opens the door for
foreign brands like Walmart or Tesco.
Organized retail in India started just
over 10 years ago in an
entrepreneurial effort by Kishore
Biyani under the banner Big Bazaar.
It is a large hypermarket, the kind of
format that Walmart or Tesco would
compete with when they open retail
stores in India. The foreign brands
are waiting for clarification of the
new law, however. The law requires
that at least 30 percent of their
merchandise be sourced locally from
small and medium sized suppliers.
It also stipulates that a minimum
level of investment be made in
building infrastructure.
Parnika S. Mehta
Group Account Director
Millward Brown India
Parnika.SMehta@millwardbrown.com
124 BrandZ Top 100 Most Valuable Global Brands 2013
The major global brands are well
positioned to open stores in India
because they already operate in the
country as joint venture wholesalers.
They did not rush to open retail stores,
however, because the recent legislation
is complicated and not necessarily the
final word.
The legislation also made it easier for
single-brand operators, like Ikea, to open
stores without an Indian partner. Ikea
has been trying to access the Indian
market for years. The Indian government
is reviewing Ikea’s $2 billion investment
proposal of opening 25 stores in India in
the next 15 to 20 years.
Cars at all price points
Carmakers pursued sales potential at
both ends of the market, offering small,
low priced models for budget-constrained
buyers and more premium options for
the wealthy. But car sales did not meet
expectations, according to the Society of
Indian Automobile Manufacturers.
Maruti Suzuki led the entry-level segment.
Renault introduced its Duster at an
affordable price point. Tata continued to
market its Nano, aimed mostly at drivers
trading up from a two-wheel vehicle.
Responding to the customer’s need to feel
pride of ownership, the Nano campaign
focused on the car’s features rather than
its price. Nano also served as a second
car for the more affluent.
BMW and other brands have introduced
more stripped down versions of their cars
in order to satisfy desire for the brand
at more affordable price point. Chinese
brands have entered the market, most
notably the Foton, which is available as
a sedan or a more premium hatchback.
Personal care
In personal care, India experienced
several global category trends including:
the popularity of anti-aging products,
increased interest in men’s grooming, and
the movement to natural ingredients.
The market included a mix of both global
and local brands. The men’s grooming
segment, for example, included Nivea
and Hindustan Unilever’s Fair and
Lovely for Men, as well as Imami’s Fair
and Handsome.
Household purchasing patterns
categories
FMCG trends in India
FMCG is the fourth largest sector in
the Indian economy. Households buy
around 23 categories each year in
urban areas, 16 in rural areas.
Tea is the biggest Consumer Reach
Points category, ahead of coffee
in all regions except south India.
Consumer Reach Points is a new
metric of brand strength by Kantar
Worldpanel. It’s a combination of
how many households buy a brand
and how often.
Source: Kantar Worldpanel 2013 Brand Footprint Report
rural
areas
urban
areas
Other categories with high
penetration are hair oils, spices,
wheat flour, talcum powder, insect
repellents and skincare products.
The fastest growing categories in
Consumer Reach Points are: soft
drinks, purchased mainly during the
summer and in large volume packs;
hair colorants, where innovation is
key; and dentifrice agents to clean
and polish teeth.
India
categories
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