Second article was especially useful and detailed and provided a mine of information on what we buy from whom . Thanks a lot . Keep up the great work .
This got me thinking if consumer data is increasingly concentrated with platforms rather than brands does ai really become a moat for FMCG companies or just another cost of staying relevant? If platforms own customer relationships where does the real competitive advantage end up?
The consideration for HUL's acquisition of Horlicks, Boost from GSK was ~43000 Crs. The 3000 Crs consideration you are referring to was only the cash component. The rest was paid in equity shares.
I keep reading about the premiumisation trend everywhere. How spread across the nation is this trend? Do consumers from Tier-2/3 also seek premium products? What about cost conscious consumers in Tier-1? Thanks to middle class upbringing, many people still seek for value for money products over premium items, or is this an incorrect understanding of the consumer? Would like to know more about these points.. KUTGW!
Do consumers from Tier-2/3 also seek premium products?
Yes. It's not just an urban phenomenon but a function of disposable income. While it might be as prominent there, but still worth tracking. Also, look at premiumization as a continuous demand for better goods. So even in a tier 2/3, if a person jumps from dant manjan to toothpaste, that's a type of premiumization in play.
What about cost-conscious consumers in Tier-1?
I would look at it more from a value-for-money POV. Customers can be cost-conscious, but still choose a premium product if it signals enough value. For example, buying A2 milk migh still appeal a cost-conscious customer, if they are sold on the fact that it's better. In that sense, a cost-conscious customer still ended up premiumizing their consumption basket.
anks to middle class upbringing, many people still seek for value for money products over premium items, or is this an incorrect understanding of the consumer?
I think both co-exist. Caveat, premiumization not to be confused with luxury consumption.
Second article was especially useful and detailed and provided a mine of information on what we buy from whom . Thanks a lot . Keep up the great work .
Thanks so much!
This got me thinking if consumer data is increasingly concentrated with platforms rather than brands does ai really become a moat for FMCG companies or just another cost of staying relevant? If platforms own customer relationships where does the real competitive advantage end up?
Very hard questions to answer, but it wouldn't be wrong to assume that platforms will stand to gain more than FMCG brands on the longer term.
Insightful
Thank you :)
The second one was good; I would love it if you guys cover the second topic more. Cheers!!!
For sure!
The consideration for HUL's acquisition of Horlicks, Boost from GSK was ~43000 Crs. The 3000 Crs consideration you are referring to was only the cash component. The rest was paid in equity shares.
Yes, that's just the cash component.
I keep reading about the premiumisation trend everywhere. How spread across the nation is this trend? Do consumers from Tier-2/3 also seek premium products? What about cost conscious consumers in Tier-1? Thanks to middle class upbringing, many people still seek for value for money products over premium items, or is this an incorrect understanding of the consumer? Would like to know more about these points.. KUTGW!
That's a loaded question; lemme try answering it.
Do consumers from Tier-2/3 also seek premium products?
Yes. It's not just an urban phenomenon but a function of disposable income. While it might be as prominent there, but still worth tracking. Also, look at premiumization as a continuous demand for better goods. So even in a tier 2/3, if a person jumps from dant manjan to toothpaste, that's a type of premiumization in play.
What about cost-conscious consumers in Tier-1?
I would look at it more from a value-for-money POV. Customers can be cost-conscious, but still choose a premium product if it signals enough value. For example, buying A2 milk migh still appeal a cost-conscious customer, if they are sold on the fact that it's better. In that sense, a cost-conscious customer still ended up premiumizing their consumption basket.
anks to middle class upbringing, many people still seek for value for money products over premium items, or is this an incorrect understanding of the consumer?
I think both co-exist. Caveat, premiumization not to be confused with luxury consumption.
Also, check out this video we did on premiumization - https://www.youtube.com/watch?v=omi9_zfF1sA&list=PLuJA1JMOOYDyXoVxydLmhyVMAEQMBEPnv&index=3
Thank you!!