Indian consumer goods companies are cutting product development and launch cycles to three months or even two weeks, driven by quick commerce platforms that now account for 75% of digital sales, amid fierce competition from D2C and regional brands.
ITC Chairman & MD Sanjiv Puri announced at the AGM that ITC expects its addressable FMCG market to reach ₹8 lakh crore by 2035, planning to achieve this through brand building, AI-led consumer insights, omnichannel expansion, and strategic acquisitions.
Quick commerce platforms in India are demanding higher margins, increased marketing spends, and adopting auction-style bidding for product visibility from consumer goods companies. This shift, driven by their growing market dominance, is raising costs for FMCG firms, with Reliance Retail also renegotiating terms.
Reliance Consumer Products Limited aims for Rs 1 lakh crore revenue by FY30 and global FMCG status. Reliance Retail reported 1.93 billion transactions, 20,160 stores, and significant growth in fashion e-commerce and quick commerce. Jio Platforms' DRHP was approved for public listing.
Indian consumer goods firms are grappling with soaring input costs, driven by the Middle East conflict. Companies are now tracking expenses daily and frequently adjusting prices, impacting long-term strategies. Executives fear higher prices could dampen consumer spending, which had recently shown signs of recovery. This volatility is forcing immediate, short-term decisions across various product categories.
