Is the slowdown severe enough for people to cut down on toothpaste, hair oil, noodles, or biscuits? Not yet. But the distributor has been hit hard, with credit channels drying up.
Is the slowdown severe enough for people to cut down on toothpaste, hair oil, noodles, or biscuits? Not yet. But the distributor has been hit hard, with credit channels drying up.
Soon after its fabulous listing in 2017, Prataap Snacks began to slip on the bourses. A struggle to break consumer preferences, lack of pricing power, and distribution battles have made growth elusive in a fickle business with wafer-thin margins.
The stock-market darling has seen a sharp correction in valuations of late. While analysts and investors say they had foreseen this and more is to come, the company’s distributors are unhappy about its aggressive expansion and growth plans, which are eating into their margins.
The constant narrative of a rural revival had effectively masked the crisis the village economy was going through. Growth has now come to a standstill, and with inflation up, FMCG companies are now staring at poor performance. So, what happens to their sky-high valuations? Here’s the story in six charts.
Going easy on the two key segments — razors and deodorants — they are focusing on niche, premium-priced, urban products for beards, moustaches, skin, and hair. The big challenge: getting men to sport a beard, and pay for it.
A bunch of nimble-footed startups, with a playbook that isn’t a copy of US or Chinese successes, is giving tough competition to traditional FMCG giants. From creating categories to finding innovative ways to tap existing ones, these young companies are way ahead of MNCs.
