1 min read.Updated: 09 Mar 2020, 09:44 PM ISTAnirudh Agarwal
Anirudh Agarwal, Member of Indian Angel Network, on the combination of various factors that are enabling the sector to flourish
It is no coincidence that fast-moving consumer goods (FMCG) has established itself as a major sunrise sector in the Indian marketplace. After all, a combination of various factors are enabling it to flourish. These include changing consumer sensibilities, rising standards of living, growing brand consciousness among the youth, and higher aspiration levels matched by an expanding class of individuals with disposable income, among other things. This provides a lucrative market to aspiring entrepreneurs—who have disruptive ideas and an iron-clad grit to complement their vision—to tap into, and generate immense profits.
Technological advancement is a key factor that makes this sector exciting for both innovators and investors. The rising adoption of cutting-edge technologies, such as artificial intelligence (AI), machine learning and data analytics, has augmented various aspects of business operations from supply chain management to last-mile fulfilment. Blockchain is another such technology that has enabled service providers to optimize security, while driving transparency and efficiency of business processes. Similarly, these developments, coupled with progressive governmental initiatives, such as the implementation of goods and services tax (GST), have also checked the growth of the counterfeit market significantly. It used to thrive by exploiting the infrastructural vulnerabilities, as well as regulatory oversight, which the integration of new-age, security-enhancing technologies has nearly eliminated.
The fast rise of online portals is another key contributor to the growth of FMCG. Easier access to the internet and increasing digital penetration are facilitating consumers with a cheaper and convenient method for purchasing products. This trend is expected to go from strength to strength, with market research estimating 40% of all FMCG consumption in India to play out digitally by 2020. On account of digital transformation and focus on innovation, new-age consumer startups today have well-curated products and omnichannel presence. This makes them well-placed to disrupt the high-value FMCG market.
Reverse Pitch is like a normal investors pitch, but with the roles reversed. That means the startup doesn’t present its business to investors but investors and companies pitch their business concept, challenges and the like to startups.