- Speaking at the
Business Insider Global Trends Festival 2020, Harsh Mariwala said the
emergence of digital marketing and e-commerce has made it cheaper and
easier for startups to make their mark in the segment.
- Modern trade and
e-commerce contribute to 22% of total sales of Marico (as of FY20).
- Mariwala also
spoke of brands like the one they have acquired Beardo or others like
Mamaearth and Boat, who have made a mark for themselves in the consumer
market.
“In the earlier days, if somebody wanted to launch a new product, they had to have a distribution network which would cater to 2-3 million outlets, which would be very very costly and unless you had a ₹1,000 crore turnover, you won’t be able to afford that,” the maker of iconic hair oil brand Parachute and edible oil brand Saffola said in a conversation at the Business Insider Global Trends Festival 2020.
The next big expenditure to ensure your
brand is known and becomes a household name, companies had to splurge big money
in television advertising. “So, for a startup, there would be a lot of odds
before entering the FMCG sector. But with the emergence of e-commerce, you can
prototype your products in these options and also use digital marketing, which
is not as expensive as television marketing. We have seen a whole host of new
entrepreneurs entering the consumer sectors,” he added.
Modern trade and e-commerce contribute
to 22% of total sales of Marico (as of FY20).
Mariwala also spoke of brands like the
one they have acquired Beardo or others like Mamaearth and Boat, who have made
a mark for themselves in the consumer market.
Marico has an eye for startups entering the space. It is bracing for a game where younger, more agile startups are making a mark, and he is buying out some of them, like Beardo and Mamaearth.
Marico has also completed the 100%
acquisition of the Ahmedabad-based startup Beardo, in which it had first
acquired a stake in 2017. Beardo’s strong presence in the online men’s grooming
segment is what drew Marico to the startup.
Talking about Beardo, Mariwala said,
“At some stage of their journey, where they reach a certain level of turnover
and when they have to expand it to physical distribution, that time they find
it difficult – that’s when they are forced to divest or get into some sort of
partnership.”
Even during the pandemic, Marico hasn’t
been much affected as most of its products fall in the essentials category.
In the pandemic, people have started
using more of E-Commerce, and India is the second-highest country to use the
internet. Which makes it a perfect place to start anything new or
relocate and MAK India Business Solutions PVT LTD is the perfect place to stop
by and know about the Indian market.
Email id: ceo@makinindia.in
Call : +91 88284
61868
www.makinindia.in
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