In a recent interview with BW Businessworld, Mayank Shah, Vice President of Parle Products, shared his insights on the premiumization trend in the Indian consumer goods market. Shah emphasized that premiumization is currently an urban-centric phenomenon, and it may take time for this trend to percolate to non-metro cities.
Shah explained that the Indian market is characterized by a significant gap between urban and rural areas, with the urban population being more affluent and having a greater willingness to pay for premium products. As a result, premiumization is more pronounced in urban areas, where consumers are seeking higher-quality and aspirational products.
However, Shah noted that non-metro cities are gradually becoming more important for consumer goods companies, driven by increasing affordability and changing lifestyle aspirations. As these cities develop and prosper, there is a growing demand for premium products, but it is still in its nascent stages.
According to Shah, Parle Products is focusing on bridging the gap between urban and rural markets by offering a range of products at different price points. The company is also investing in digital marketing and e-commerce to reach a wider audience and increase its online presence.
Shah emphasized that while premiumization is a key trend in the Indian market, it is essential to strike a balance between premium and affordable products. He noted that the majority of Indian consumers are still price-sensitive, and companies must offer value-for-money products to cater to this segment.
In terms of product innovation, Shah stated that Parle is focusing on creating new and exciting products that cater to evolving consumer preferences. The company is also working on sustainability initiatives, such as reducing packaging waste and promoting eco-friendly practices.
Overall, Shah’s insights suggest that while premiumization is a significant trend in the Indian market, it is essential for companies to adopt a nuanced approach that balances premium and affordable products. By doing so, companies can cater to the diverse needs of Indian consumers, both in urban and non-metro areas. As the Indian market continues to evolve, companies like Parle Products are well-positioned to capitalize on emerging trends and opportunities.
Key points from the interview include:
* Premiumization is currently an urban-centric trend in India
* Non-metro cities are gradually becoming more important for consumer goods companies
* Parle Products is focusing on bridging the gap between urban and rural markets
* The company is investing in digital marketing and e-commerce to increase its online presence
* Striking a balance between premium and affordable products is essential
* Product innovation and sustainability initiatives are key areas of focus for Parle Products.