They have trust value to use at home in our rooms and air we breathe…compulsion value when we take kids to play…a parent would feel secure using the best brand in this category…btw Godrej is coming up with herbal insecticide products…now that’s innovation value 
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No doubt that it is a great brand . We just need to be sure about the alternatives and the valuation. Since we have a weak market now, we have many opportunities and one can focus on what they like and prefer.
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It is not the listed entity right?
That’s the trick. Shorter shelf life will lead to shorter Cycle. Which is why smaller packs are, effectively, 30% cheaper.
Yes sir. Only the subsidiaries PGHH and Gillette are listed.
That’s what I don’t like about these MNCs…their best brands are not part of listed companies…except in case of hul and 3m and maybe whirlpool…where all their products are from listed entity?
Yes, my take is that it is a trend. In a few years from now beards will be passe and the clean look will be in vogue again. These are just trends I feel. Also, if you take a cursory glance across the street, you’ll notice more people are clean shaved than with beards (this is just my observation!)
In all honesty mate, these brands are too small to make a dent in the larger scheme of things (is the feeling I have). And yes, there is a good chance they maybe bought out by one of the bigger brands. In fact, I don’t see why P&G / Gillette can create or use their existing brands to give these niche brands a run for their money. Considering we are talking about grooming here, a quote from Vivek Gambhir (MD and CEO GCPL) I recently read potentially seems to make sense in this context -
It has also forayed into the salon segment with Godrej Professional hair colour. “We will get into a few more categories in the next 6-12 months. In India, it is better to grow organically as we are not finding any interesting brands to acquire," said Gambhir, who feels it’s easier to build than buy niche brands as they are not likely to cross ₹ 100 crore in revenues. (https://www.livemint.com/Companies/q6aKzsmmMxx1AGkSoVKgJL/Godrej-Consumer-to-go-slow-on-acquisitions-take-stock-of-pa.html).
So, if the brands are niche, maybe P&G can just create competing brands and squeeze these niche brands into submission over time!
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Some stories/Challanges related to above discussions
‘No category is immune’
Eager venture capitalists, digital technology and social media make it easier for anyone with a good idea to enter the consumer goods market, according to a report on insurgent brands by Bain & Company, a management consulting firm. Contract manufacturing, which allows companies to outsource production and sometimes defray costs, also has made it simpler.
“The reality is that no category is immune to disruption,” the Bain & Company report said.
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Digital technology, contract manufacturing and a ready pool of venture capital have lowered the barriers to entry. Consumer expectations for tailored and specific offerings have increased. Meanwhile, the proliferation of channels, especially online, opens access to consumers outside the bounds of traditional retail.
Offer a compelling consumer proposition backed by an authentic brand story. Insurgents are competing for the same consumers as established brands. What sets them apart is a compelling offer that addresses a real, unmet consumer need. Our research indicates that consumers rank insurgent brands more highly than incumbent brands on many aspects of brand value, as defined by our Elements of ValueSMapproach. The most meaningful differences in which insurgents outperform are on emotional and life-changing benefits.
Two models have emerged. Many insurgents, such as low-calorie ice cream Halo Top, offer higher quality or distinctive attributes at more premium price points. Others, such as shaving goods company Harry’s, feature greater convenience and a better purchase experience by using alternative channels, often at more competitive price points.
Redefine the benefits of scale. Make no mistake about it: Big brands still matter. Indeed, they account for significant market share in all categories, and many are still growing. As the landscape around them changes, however, they need to rethink how to create new advantages of scale.
One of the best article I have read on the effect of information on commerce , education and politics, Posting here as it starts with its effect on Brands.
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Very Insightful article. Thanks for sharing
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in 10yrs time india may also do these things
Consumer Staples tend to have min disruption … Interesting article …
If you plot this for same period for IT services and Pharma … Here too there will be min changes
But try to do it for financial services , Capital goods , materials etc … Swings will be higher
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True and I am a firm believer in FMCG coffee can investing. I have seen top US FMCG companies do great over multiple cycles and so our Indian homegrown FMCG. However fall of share price of emami and Bajaj consumer over promoter pledge issues etc. Make me rethink if Indian homegrown FMCG is a buy and hold for long term or should I switch to MNC FMCG? Are Indian homegrown FMCG in for a long haul like Colgate and p&g of the world or Unilever? Are Marico, Godrej consumer, dabur, emami and Bajaj consumer…all from great respectable business houses are businesses lasting years with same solidarity like these MNCs? Thanks
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When I think about the long-term growth trajectory, I feel that homegrown FMCG companies have more gas left. The simple reason is that, the Indian exchange listed MNC FMCG companies have license to market only in India and a few neighboring companies, whereas homegrown FMCG companies like Dabur, Marico, GCPL can sell products worldwide through the listed arm.
Moreover, the homegrown FMCG companies have successfully adopted the formula that made those MNC giants successful. They have built good brands; they are spending more & more on A&P; they are entering the emerging markets in the nascent stages through organic & inorganic route etc. The MNC companies (HUL, Reckitt Benckiser, P&G Home etc.) came to India when India was one of the emerging countries and so have first-mover advantage which the homegrown companies are slowly eating up.
Last but not the least, most MNC companies have the tendency to introduce new products through unlisted arms.
So, if I were to invest in MNC giants, I would’ve invested in their foreign exchange listed parent.
Disc. Invested in Dabur, Marico & GCPL.
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Dabur and Marico definitely qualify for very high quality home grown FMCG plays. Dabur has huge brand equity in middle east for its traditional portfolio beyond India. Marico makes for lack of history by constant innovation in area of aspirational niches and healthy food.