MUMBAI: Call it the impact of new age D2C brands bringing about a shift in consumption patterns as they build products to cater to different consumer nuances, or more households going premium helped by rising incomes, global FMCG giants are bringing foreign brands to India. Be it PepsiCo getting its Australian gourmet snacking brand Red Rock Deli to the country or L’Oreal’s recent launch of skincare brand La Roche-Posay here, traditional companies are sharpening their India portfolio to stay relevant as consumers demand more choices. Indians are ‘actively’ seeking out gourmet products and are exploring new formats, said Saakshi Verma Menon, chief marketing officer, foods at PepsiCo India. “For us, it’s (the launch of Red Rock Deli) our next step in shaping what the Indian landscape of snacking looks like,” Menon told TOI, hinting at the possibility of more global brands from the company’s stable to foray into the market.
PepsiCo will manufacture the products in India and localise the flavours as winning strategies for brands here has often been to craft products suited to the local palate. A joint report released by DSG Consumer Partners and Bain & Company in July this year showed that new-age brands have been growing steadily, outpacing overall market growth and challenging legacy players. A clutch of over 30 brands it covered across a mix of sectors including Farmley, Minimalist, Mokobara and Lahori Zeera achieved a combined revenue of $5 billion in FY24, recording a growth of five times over FY19. “Greater number of brands are cracking the playbook of capital-efficient growth,” analysts said. FMCG companies such as HUL, Marico, ITC and Godrej Consumer Products have been acquiring D2C brands amid growing competition from new-age players, which are threatening their market share. A changing competitive landscape aside, rising disposable incomes and a growing share of high earning households have widened the scope for companies to bring global and premium brands to India. L’Oreal said that launch of La Roche-Posay underscores its belief in the market’s potential. “We need to bring the best of global skincare to the hands of Indian consumers,” said Rami Itany, director, L’Oreal dermatological beauty, L’Oreal India.
