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The fast moving consumer goods (FMCG) segment is the fourth largest sector in the Indian
economy. The market size of FMCG in India is estimated to grow from US$ 30 billion in 2011 to US$
74 billion in 2018.
Food products is the leading segment, accounting for 43 per cent of the overall market. Personal
care (22 per cent) and fabric care (12 per cent) come next in terms of market share.
Growing awareness, easier access, and changing lifestyles have been the key growth drivers for the
sector.
The Government of India has also been supporting the rural population with higher minimum support
prices (MSPs), loan waivers, and disbursements through the National Rural Employment Guarantee
Act (NREGA) programme. These measures have helped in reducing poverty in rural India and given
a boost to rural purchasing power.
Hence rural demand is set to rise with rising incomes and greater awareness of brands.
Urban trends
With rise in disposable incomes, mid- and high-income consumers in urban areas have shifted their
purchasing trend from essential to premium products. In response, firms have started enhancing
their premium products portfolio. Indian and multinational FMCG players are leveraging India as a
strategic sourcing hub for cost-competitive product development and manufacturing to cater to
international markets.
Top Companies
According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by MNCs, and
the balance by Indian companies. Fifteen companies own these 62 brands, and 27 of these are
owned by Hindustan UniLever.
According to a study by TMW and Marketing Sciences that surveyed 2,000 people across different
age groups ranging, young consumers are the most ‘rational’ and likely to spend more time weighing
up potential purchases. The survey also suggests that younger people are using recommendations
from their peers about products and services in order to make rational purchase decisions.
According to the study, shoppers aged 18 to 24 are 174 per cent more likely to use
recommendations on social media than shoppers aged 25 and over.
Another key factor today is – speed. Today's consumer wants packaged goods that work better,
faster, and smarter. The “ need for speed" trend highlights the importance of speed as a potentially
decisive purchase factor for packaged goods products in a world where distinctions between
products are shrinking.
Younger consumers express the greatest need for speed, not a huge surprise for the smartphone
generation. Datamonitor's 2013 Consumer Survey found that younger consumers those in the 15-24
year old age group were twice as likely to say that "results are achieved quickly" has a "very high
amount of influence" on their health and beauty product choices than consumers in the oldest age
group, those aged 65 or older. Speed matters, and 2014 will almost certainly see the introduction of
new game-changing timesavers.
Road Ahead
FMCG brands would need to focus on R&D and innovation as a means of growth. Companies that
continue to do well would be the ones that have a culture that promotes using customer insights to
create either the next generation of products or in some cases, new product categories.
One area that we see global and local FMCG brands investing more in is health and wellness.
Health and wellness is a mega trend shaping consumer preferences and shopping habits and FMCG
brands are listening. Leading global and Indian food and beverage brands have embraced this trend
and are focused on creating new emerging brands in health and wellness.
According to the PwC-FICCI report Winds of change, 2013: the wellness consumer, nutrition foods,
beverages and supplements comprise a INR 145 billion to 150 billion market in India, is growing at a
CAGR of 10 to 12%.
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Personal Care
Type Products Weight Price
Skin Care Shishu Taila 100 ml Rs. 200
Crack Cream Sri Sri Ayurveda 25 gm Rs. 35
Body Oil Sri Sri Ayurveda 200 ml Rs. 140
Cucumber Lemon Face Wash Sri Sri Ayurveda 60 ml Rs. 60
Sri Sri Ayurveda Anti Acne Gel for Dark Spots 10 gm Rs. 70
Body Butter Sri Sri Ayurveda 150 gm Rs. 250
Dawn-To-Dusk Fortifying Cream 60 ml Rs. 60
Exfoliating Face Scrub Sri Sri Ayurveda 60 ml Rs. 55
Gulab Jal Sri Sri Ayurveda 60 ml Rs. 65
Extra Nourishing Moisturiser Sri Sri Ayurveda 60 ml Rs. 60
Protecting Sunscreen Cream Sri Sri Ayurveda 60 ml Rs. 80
Rejuvenating Night Cream Sri Sri Ayurveda 60 ml Rs. 52
Replenishing Foot Cream Sri Sri Ayurveda 60 ml Rs. 60
Rose Face Wash Sri Sri Ayurveda 60 ml Rs. 60
Walnut Orange Scrub Sri Sri Ayurveda 60 ml Rs. 60
Almond Honey Soap Sri Sri Ayurveda 100 gms Rs. 33
Malai Cream Soap Sri Sri Ayurveda 100 gms Rs. 33
Sandal Soap Sri Sri Ayurveda 100 gms Rs. 33
Orange & Tulasi Soap Sri Sri Ayurveda 100 gms Rs. 33
Glycerin Soap Sri Sri Ayurveda 75 gms Rs. 36
Heal Cream Sri Sri Ayurveda 25 gm Rs. 40
Sri Sri Ayurveda’s Anti Acne Face Wash 60 ml Rs. 60
Lip Balm Sri Sri Ayurveda 10 gm Rs. 60
Orange Face Wash Sri Sri Ayurveda 60 ml Rs. 60
Turmeric Face Pack Sri Sri Ayurveda 60 ml Rs. 65
Aloe Vera & Vit. E Cream Sri Sri Ayurveda 100 gm Rs. 90
Kesar Cream Sri Sri Ayurveda 100 gm Rs. 100
Sri Sri Ayurveda Cleansing Milk 100 ml Rs. 70
Neem Face Pack 60 gm Rs. 65
Moisturizing Cream Rs. 120
Hair Care Brahmi Bhringaraj Taila 100 ml Rs. 70
Sukesha Hair Oil Sri Sri Ayurveda 100 ml Rs. 130
Henna Shikakai Shampoo Sri Sri Ayurveda 200 ml Rs. 110
Hydrating Conditioner Sri Sri Ayurveda 60 ml Rs. 50
Bringamalakadi Taila Sri Sri Ayurveda 100 ml Rs. 100
Anti Dandruff Shampoo Sri Sri Ayurveda 200 ml Rs. 150
Protein Shampoo for Dry to Normal Dull Hair 200 ml Rs. 130
Pain Relief Vedanantaka Liniment 60 ml Rs. 140
Vedanantaka Balm 30 gm Rs. 60
Kshirabala Taila Sri Sri Ayurveda 100 ml Rs. 95
Narayana Taila Sri Sri Ayurveda 100 ml Rs. 145
Pinda Taila Sri Sri Ayurveda 100 ml Rs. 95
Oral Care Sudanta Toothpaste 50 gm Rs. 30
Mouth Freshener Sri Sri Ayurveda 15 ml Rs. 50
Sudanta Toothpaste 100 gm Rs. 56
Eye Care Srinetra Eye Drops Sri Sri Ayurveda 5 ml Rs. 35
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Type Products Weight Price
Herbal Shakti Drops 10 ml Rs. 110
Tulasi Arka 30 ml Rs. 80
Ajamoda Arka 30 ml Rs. 80
Gomutra Arka Sri Sri Ayurveda 100 ml Rs. 85