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FMCG 2018-06-11

How Patanjali Challenged the FMCG Protocol

Recently Indian market is witnessing a tussle between FMCG brands to be on top of the game, especially in becoming the “desi-est brand”. Read...

By Nibedita MohantaSenior Sub-editor

 

Business is all about the race where one chases his/her rival and out pass them. This fiction is what keeps the spirit of business alive. It is easy to become number one but way more difficult to maintain the position.

Recently Indian market is witnessing a tussle between FMCG brands to be on top of the game, especially in becoming the “desi-est brand”, which has been occupied by Yoga guru turned industrialist Baba Ramdev’s Patanjali Ayurved Ltd.

Here we have tried to learn and understand the FMCG brands’ desperate attempt to become number one:

  • Patanjali’s Success is drool-worthy:

The entire country has witnessed the success of Patanjali Ayurved Ltd and now other rival companies too have started taking their lessons.

Patanjali’s success encouraged and inspired many startups and entrepreneurs to explore in this segment. Now Spiritual guru Sri Sri Ravishankar too has announced his entry into the FMCG line with his brand “Sri Sri Tatva” to give tough competition to Patanjali. He has declared to spend Rs 200 crore on advertising and marketing while revealing his future plans of expanding across the country by opening 1000 stores.

  • Acknowledging the “desi” segment:

Since the international players started venturing into the market of India, they had only focused on eliminating the traditional and age-old methods and introducing modern techniques.

Indians were fascinated with the modern lifestyle, techniques, and usage of products but with Patanjali’s “Swadeshi” move, it brought back forgotten traditions and linked them to their daily needs.

Patanjali made the “desi’ segment alive when other FMCG brands were still selling the chemically loaded products.

Slowly other companies too started to look into space they had avoided looking in all these years, which is why other FMCG products too have started venturing their products in “desi” space.

  • Bridging the needs with cultural roots:

Patanjali identified the space for its growth and started its business by bridging the daily needs of Indian with cultural roots. Patanjali blew a breath of fresh air into the Indian household with its desi products, emotionally linking them with nature and farmers.

Patanjali’s herbal and organically induced products successfully spread a sense of connecting to the roots, which helped it in spreading rapidly across the country geographically.

This sudden “Swadeshi” move has initiated a tug-of-war between the FMCG brands, where other brands are turning “desi” to meet the needs of the consumer and keeping their brand on the surface.

Even though brands like Dabur, Himalaya, and Vicco exist with their organic label, they could not stop Patanjali from spreading like wildfire because when they were just focusing on only personal care products at a time to maintain its quality, Patanjali focused on all products at a time without compromising on the quality.

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