At Hindustan Unilever Limited (HUL) headquarters in Mumbai, the research and development team are diligently analysing consumer trends to innovate products for retail shelves, responding to the evolving preferences of Indian consumers. With a shift towards discerning consumption, fast-moving consumer goods (FMCG) firms are focusing on local nuances and adopting a “designing for India” approach. Executive Director of R&D at HUL, Mr. Vibhav Sanzgiri, highlighted the importance of regional product differentiation, noting that the blend of Red Label tea varies between the North and South. The company is also prioritising health, taste, wellness, fragrance, and packaging as part of its product development strategy.
FMCG companies are increasingly capitalising on consumers’ willingness to pay a premium for differentiated offerings. For example, Colgate-Palmolive has launched arginine-based toothpaste to cater to snacking habits. Marico focuses on healthier options under the Saffola brand, introducing products like honey and millet. A recent study by venture capital firm Fireside Ventures revealed that urban Indian consumers are prepared to pay up to a 15% premium across various food categories, with a 30% premium for healthier snacks and ready-to-eat items. Nestlé India has embraced this trend, launching over 140 new products in the last eight years, including the popular Maggi oats-millets. PepsiCo India also introduced a localised red chilli flavour variant in its Lay’s portfolio, reflecting the need to tailor products for diverse Indian preferences.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.