With our PM urging all fellow citizens to "be vocal for
local" has created a spark in the country. He encouraged domestic
production and urged everyone to consume local goods more. Very quickly, many
local and global brands started rolling out creative ads to stand out and gain
some emotional quotient.
1. AMUL - Milky Mist
2. Kissan Jam - Mapro
4. Uncle Chips - Balaji Wafers
Before deep diving, we should define what does a local or
global brand mean. Let's take Bata, a household name in the footwear market.
But surprisingly, it was founded in the Czech Republic and is headquartered in
Switzerland. Yet, it's subsidiary Bata India was incorporated in 1931 in
Calcutta and is in fact listed in NSE. Also, all the shoes are locally
manufactured here. On the other hand, if we speak about Paragon, another
leading footwear manufacturer, it started out from Kerala and then dominated
the Indian sub-continent. It also outsourced productions to various parts of
the country. So, now the question comes, how would you categorize both the
brands. There are various other brands, for example, HUL which boasts of global
DNA but is a complete local.
During the ongoing lockdown, we are witnessing that this
period has turned out a boon for local brands, given the non-availability of
big brand products in many areas. After a surge in market demand for items like
sanitizers, hand wash, masks, food items, many local brands were quick to act
for gaining their new customers. With the advantage of local production,
getting permissions from local bodies and having a shorter transportation cycle
has made their supply chain good enough to make the products available to the general
mass. Secondly, customers during these hard times are now flexible in their
choices as they can't comprise on essential items. Also, retailers can ask for
a good percent share from local brands, which they couldn't do before, as
global brands have their loyal customer base which they have accumulated over a
period of time.
Off late with the rise and growth of swadeshi brands like
Patanjali, riding on better town and rural demand which scared many big FMCG
companies, the purchase was driven by low prices and emotions at large. But
will this pattern continue across all industry verticals? Or would a customer
take a rational decision based on value proposition? Experts feel the
behavioural change for going vocal for local may not change much. When we all are
highly concerned about health and safety, consumers will not prefer less
trusted brands, rather they would become more rational in making choices.
The PM's message was not to boycott global brands, rather
trying to shift our country's service-based economy to a manufacturing one, and
not heavily rely on imports. Going forward, every local and global brand has
equal opportunity to make the most out of this situation be it be improving the
supply chain efficiency, increasing the local manufacturing and communicating
the right message to the audience about what their brand stands for.
Ultimately, the product/services will always remain the king.
P.S - During this lockdown, since some top brand products
were not available, here is the list of alternatives that I tried :
1. AMUL - Milky Mist
2. Kissan Jam - Mapro
4. Uncle Chips - Balaji Wafers
2 Comments
From the deep if to be researched , the local companies which are emerging to produce in this pandemic,these companies are responsible for supplying materials and the big FMCG just adds its brand value sticker on it .
ReplyDeleteWell that's good as local businesses are getting their money and chose to play a passive part in the whole cycle of creating a product.
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