Thats good observation, few points to consider, if you have more details would be helpful -
- When did Britannia begin its Dubai operations?
- When was first time you saw Britannia biscuit in this store?
- Do you see Britannia biscuits or any other category in any other retail store in Dubai? What kind of distribution are they following…targeting mom n pop stores or bigger retail chains etc.
- Is such offers/big discounts available in all stores wherever Britannia exists?
- Has this discount been always there in this store or only at time of Clearance of stocks?
Above are just pointers to begin with, let alone to take any buy/sell decision. FMCG is a very long term game. Britannia is more than 100 year old brand in India and hence its significant monopoly…it cannot be the same everywhere globally…An investment in Britannia is primarily for its Indian presence and not Dubai or any other international market where it may have ventured. It can anytime wind up those loss making or not so profit making units…
Also, such challenges in Old/new markets is common for many brands…it is how in due course the company tackles it that must be monitored…
Lastly, India is a market where there maybe a general perception (which is soon changing with Gen X) that discounted products are sub standard…whereas in some international markets like US for example, discounts/clearance can be found in even the most luxurious (obviously baring few) brands. If you are lucky, you can get a brand new 100$ shoe in just 1$ on a clearance sale. Such sales there, do not reduce the brand value at all, instead they delight a consumer and make him just feel lucky!
Disc: Invested & Biased. Not a buy/sell decision. Views for academic purposes and I can be wrong in my assessments