Regional FMCG brands are rapidly expanding to challenge national brands after overtaking them and posting double-digit sales growth over the past two quarters as inflation cools. Brands such as Rungta tea, Balaji waffles, Mario RusskAnd Bovonto Soft drinks are among those boosting brand visibility and diversifying their offerings after emerging stronger from pandemic disruptions, an ET report said.
Rungta Tea, which operates in markets like Uttar Pradesh, Rajasthan and Bihar, is setting up tea rooms on par with Chai Point and Chaayos. They are also setting up an e-commerce team to expand their presence. Girjesh Rungta, Managing Director of Rungta Tea, expressed the intention to move to the next level while maintaining the focus on quality and innovation.
“We are growing faster than many national brands in the markets we serve and have relationships with distributors and customers. Now we are moving to the next level with tea rooms and e-commerce, while continuing with quality and innovation,” he told ET.
According to Kantar Worldpanel’s recent report, local brands achieved volume growth of 12.7% between April last year and April this year, surpassing national brands, which grew by 8.2%. The success of regional brands is attributed to innovation and wider distribution.
Rajkot-based Balaji Wafers is setting up its first manufacturing facility in North India at Lucknow as part of its pan-India expansion strategy. The brand has been aggressively wooed by PepsiCo’s Indra Nooyi and other major snack giants. Chandubhai Virani, the founder of Balaji, highlighted their commitment to value for money.
Bovonto soft drinks, known for products such as orange and ginger ale soft drinks, plans to expand beyond its core markets in Tamil Nadu and Andhra Pradesh. Furthermore, Mario Rusk has appointed actor and singer Diljit Dosanjh as its first brand ambassador.
This trend of regional brands going national is evident across several product categories, including snacks, tea, biscuits, detergents, soaps and toothpaste. These regional giants are characterized by their founder-driven operations, which enable rapid responses to market challenges, says Sumit Agarwal, co-founder of Vitrak ExtendReach, a traditional trade distribution platform.
They also have a “razor-sharp focus on the category,” he said. “Unlike, say, a HUL, these brands do not cater to different categories at the same time,” says Agarwal. “Plus, they work without frills; they are able to provide more value to consumers.”
Rungta Tea, which operates in markets like Uttar Pradesh, Rajasthan and Bihar, is setting up tea rooms on par with Chai Point and Chaayos. They are also setting up an e-commerce team to expand their presence. Girjesh Rungta, Managing Director of Rungta Tea, expressed the intention to move to the next level while maintaining the focus on quality and innovation.
“We are growing faster than many national brands in the markets we serve and have relationships with distributors and customers. Now we are moving to the next level with tea rooms and e-commerce, while continuing with quality and innovation,” he told ET.
According to Kantar Worldpanel’s recent report, local brands achieved volume growth of 12.7% between April last year and April this year, surpassing national brands, which grew by 8.2%. The success of regional brands is attributed to innovation and wider distribution.
Rajkot-based Balaji Wafers is setting up its first manufacturing facility in North India at Lucknow as part of its pan-India expansion strategy. The brand has been aggressively wooed by PepsiCo’s Indra Nooyi and other major snack giants. Chandubhai Virani, the founder of Balaji, highlighted their commitment to value for money.
Bovonto soft drinks, known for products such as orange and ginger ale soft drinks, plans to expand beyond its core markets in Tamil Nadu and Andhra Pradesh. Furthermore, Mario Rusk has appointed actor and singer Diljit Dosanjh as its first brand ambassador.
This trend of regional brands going national is evident across several product categories, including snacks, tea, biscuits, detergents, soaps and toothpaste. These regional giants are characterized by their founder-driven operations, which enable rapid responses to market challenges, says Sumit Agarwal, co-founder of Vitrak ExtendReach, a traditional trade distribution platform.
They also have a “razor-sharp focus on the category,” he said. “Unlike, say, a HUL, these brands do not cater to different categories at the same time,” says Agarwal. “Plus, they work without frills; they are able to provide more value to consumers.”
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