Nishant Dalal

Will MNCs Rethink Asia? Last week, HUL announced a leadership change. Interestingly, the statement also mentioned that all business units would now report directly to the new CEO. This shift could signal something deeper. Over the past two decades, most MNCs adopted a matrix structure—designed for agility and collaboration across markets. But somewhere along the way, the matrix began to centralize decision-making at global HQs, often at the cost of proximity to the consumer. The result? Strategy guided by spreadsheets, decisions made in boardrooms thousands of miles away—disconnected from the ground realities of Asia’s dynamic markets. We grew up learning from leaders who believed in MBWA (Managing by Walking Around). Today, with all the technology at our fingertips, we’re ironically more distant from the consumer than ever before. Asia’s greatest success stories—HLL, Unilever Indonesia, Kao Cosmetics, Amore Pacific, and Wipro UNZA—all flourished under empowered, independent local leadership. Their agility, local insight, and cultural empathy drove real impact. So, a question worth asking: Will the matrix evolve? Will MNCs decentralize to stay relevant in Asia? Or is a new model of leadership overdue? Open to views, reflections, and a deeper discussion with those rethinking growth in Asia. Saket Gore Asia-Pacific, Russia, India | Consumer Brands | Business Transformation | Board Advisor #Leadership #AsiaStrategy #GlobalLeadership #MatrixStructure #BusinessTransformation #FutureOfWork #ConsumerBrands #BoardAdvisory #CEOInsights #OrganizationalDesign #LocalLeadership #MNCstrategy #EmergingMarkets #SaketGore #GrowthInAsia #RethinkingLeadership

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The Role of Modern Trade in the Growth of D2C Brands As D2C (Direct-to-Consumer) brands continue to redefine consumer experiences, modern trade has emerged as a critical growth lever. While online channels have been the backbone of many D2C businesses, the value of modern trade channels like supermarkets, hypermarkets, and organized retail chains cannot be overstated in today’s competitive landscape. Here’s why modern trade is vital for D2C brands: 1️⃣ Enhanced Brand Visibility: Shelf space in premium retail outlets boosts brand awareness and fosters trust among a wider consumer base. 2️⃣ Omnichannel Strategy: Modern consumers demand convenience. Being available in both online and offline channels ensures you reach your audience wherever they prefer to shop. 3️⃣ Data-Driven Insights: Collaborating with modern trade partners provides access to valuable consumer behavior data, which can help optimize product placement and assortment. 4️⃣ Market Penetration: For emerging D2C brands, modern trade provides access to regional and international markets, expanding their reach. 5️⃣ Building Consumer Confidence: Many consumers still prefer to physically experience products before making a purchase decision. A presence in modern trade ensures this tactile connection. For D2C brands looking to scale sustainably, balancing online and offline distribution strategies has become the need of the hour. Modern trade isn’t just an additional channel; it’s a pathway to deeper market integration and stronger brand equity. Are you leveraging modern trade as part of your D2C strategy? Let’s discuss in the comments! #D2C #ModernTrade #RetailStrategy #Omnichannel #ConsumerExperience

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Quick #commerce has emerged as a crucial distribution channel for #FMCG companies in India, responding to the rising demand for swift deliveries. These platforms now represent around 35% of FMCG firms' e-commerce revenue. Noteworthy quick commerce platforms in India encompass Blinkit, Zepto, Swiggy Instamart, and BBnow bigbasket.com. To effectively navigate this landscape, companies are enlisting dedicated key account managers to oversee relationships with quick commerce ventures. #Nestle India's performance underscores the significance of quick commerce, with 60% of their e-commerce sales in Q3 2024 attributed to this channel. Among the popular brands available on quick commerce are #Kitkat, #Nescafe, #Maggi, and #Milkmaid, with a substantial offering of 90-120 SKUs on these platforms. #Kenvue, previously affiliated with Johnson & Johnson, has experienced notable growth through quick commerce. Their key brands like #Stayfree, #Johnson's Baby, #Neutrogena, and Listerine are prominently featured. The company focuses on essential health and skin health & beauty segments, aligning with the evolving consumer preferences in the market. Publicis Groupe India Publicis Groupe Publicis Media Publicis Commerce

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🚚🥦 The BigBasket Story – From Growth to Growing Pains Not long ago, BigBasket was the name people trusted for convenience in online grocery. It grew rapidly, became part of Tata Digital, and seemed ready to ride the quick commerce wave. But FY25 told a different story: 📉 Revenue fell ~3% to ₹7,673 crore 📉 B2B arm declined ~7% to ₹2,227 crore 💸 Losses widened ~42%, crossing ₹2,000 crore What happened? 👉 The quick commerce race turned into a cash burn marathon. Competitors like Blinkit, Zepto, and Instamart pushed the “10-minute delivery” promise, forcing BigBasket to chase speed while margins shrank. 👉 Rising operational costs, discounts, and logistics pressures made profitability a distant dream. 💡 The lesson: Growth without strong unit economics is like filling water in a leaking bucket. You may run faster, but the losses will run faster too. BigBasket’s journey is a reminder for every founder, CFO, and decision-maker: ✅ Build scale, but not at the cost of sustainability ✅ Differentiate beyond speed—trust, range, consistency matter more ✅ Cash flow is the real king, not just GMV As we watch the e-grocery battle unfold, the question remains— ⚖️ Will BigBasket find a way to balance speed with sustainability, or will quick commerce eat up the slower giants? #bigbasket #ecommerce #quickcommerce #tata #zepto #blinket #instamart pic credit #inc42media

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Taking a cue from Ahana Gautam's posts / podcasts on "Unjunking India" and Nielsen IQ report on "Premiumisation in FMCG" especially led by Q-commerce, I tried to deep dive into: "Will General trade and Modern trade aisles really look different in 2030 due to premiumisation and un-junking? And what might FMCG brands need to do to achieve scale in these segments?"   Key sub-categories driving the premiumisation and unjunking journey: 1. Healthy snacking - Led by brands such as The Whole Truth Foods, ITC Yogabars, Open Secret etc. 2. Cold pressed oils - Led by brands such as Anveshan and large players like Jivo Wellness, Tata Simply Better from Tata Consumer Products etc. 3. Flours and pulses - Led by brands like ORGANIC INDIA, Better Nutrition 4. Dairy - A2 Ghee, vegan milk alternatives, products from Country Delight   However, if we look at the categories they operate in, it's a long way to go if we compare the market sizes of Biscuits & Snacks (Led by Britannia, Parle , ITC), Edible Oils (Led by Marico and Adani Wilmar), Staples (Largely unbranded still, many private labels, fragmented)   In a value-conscious country, the main deterrent for large-scale adoption of premium, healthier alternatives will be the Avg. selling price vs incumbents. Even on quick commerce, each platform has many OPP brands and private labels; the share of premium brands is ~25-30%   To replace incumbents in GT and MT aisles (where premium brands <10%) by 2030, brands will need to make premiumization more accessible while maintaining profitability, through: 1. Localized Sourcing & Backward Integration 2. Smaller & Affordable Pack Sizes 3. Education & category-building initiatives   Currently, the TAM for premium, healthy products is limited (~10-15% of India's population); if the middle class doesn't grow in the next 5 years, then this will be a huge risk to scale premiumisation. However, with the increasing focus on healthy alternatives, smaller pack sizes would still ensure that customers may choose these over incumbent brands.   It will be interesting to see how Premiumisation & Unjunking plays out over the next few years. Would love to discuss. Please comment / DM. P.S., Another trend I am curious about is the growing 'ready-to-eat / 'frozen food' segment for the Convenience-seekers. More on that in another post! #fmcgtrends #premiumisation #healthandnutrition

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India is on its way to becoming the fourth largest market for Consumer Durables by FY27. Consumer durables sector contributes to ~0.6% of India’s GDP, and is expected to grow at ~11% (CAGR) to reach INR3 lakh crore by FY29. Despite the pandemic, the domestic market has experienced a growth of 10% (CAGR) during FY19-24 driven by increasing affluence, household penetration, premiumization and shorter replacement cycles. Going forward, the growth expectation for the sector is expected to be over 11%, with categories like ACs and appliances accelerating as consumers unleash discretionary spending towards household upgrades. Technological shifts towards connected and energy efficient devices are expected to drive incremental growth. Technological innovations are at the heart of India’s consumer durables industry, with rapid advancements leading to shorter product replacement cycles. Consumers are enticed by the latest features and improvements, fostering a culture of continuous upgrade and consumption. Products that offer convenience, connectivity, and sustainability are gaining popularity among the burgeoning middle class, driving innovation and competition among manufacturers. India is witnessing a surge in demand for smart and energy-efficient appliances. India's strategic position in global trade is reinforced by its robust consumer durables industry. The country is poised to become a key exporter of electronics and appliances, leveraging its competitive advantages in cost, quality, and innovation. The advent of online retail channels has revolutionized the availability of consumer durables in India and has the potential to provide an impetus to its export. The government’s Open Network for Digital Commerce (ONDC) further amplifies this reach, democratizing access to a wide array of products and enabling even the most remote consumers to participate in the digital economy. The government’s "Viksit Bharat" initiative, meaning "Developed India," acts as a catalyst for change, driving the country’s economy towards growth and development. The Pradhan Mantri Aawas Yojana (PMAY), a pivotal initiative that aims to provide affordable housing to the urban poor, has a direct impact on the consumer durables industry, as new homeowners are potential consumers of appliances and electronics, thus stimulating demand. Complementing the PMAY, the Pradhan Mantri Suryodaya Yojana focuses on harnessing solar energy to power homes. This initiative not only promotes the use of renewable energy, but also creates opportunities for the sector to innovate in energy-efficient products. -Source "E&Y"

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