Healthcare products maker RB India (erstwhile Reckitt Benckiser) plans to introduce more premium offerings under its power brands to tap emerging opportunity in the fast growing segment, said a top company official.
The company expects this premiumisation trend is going to stay into the Indian FMCG market, which encourages the British FMCG major to introduce more global products in Indian market.
"This is the trend which we are experiencing all across. With rising affluence, now the consumers are willing to pay more for benefits, which they think is worth more," said RB South Asia Marketing Director Hygiene Home Sukhleen Aneja.
In the past, India used to be a value conscious market but now today more and more consumers are comfortable in paying more for enhanced value, she added.
"I think premiumisation is going to stay," she said. "This encourages us to bring best global products (from RB's portfolio) to India".
"In the past, you were shy to bring so many products because you felt that market was not ready... but the consumers are much more experimental and willing to pay more for the benefits," she added.
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On being asked as whether RB would introduce more brands from its global portfolio, she said, the company's focus continues to be on global power brands such as Harpic, Lizol, Mortein, Vanish. Within the power brands, we are open to bring premium solutions.
Encouraged by premiumisation trends in the FMCG segment, RB India has introdued three premium products in the last six months.
"The supremarket India...Amazon India (e-commerce)...consumers are ready to try with the assortment of choice," she said, adding that company would also focus on other consumer as part of its pan India approach.
As part of that, RB India on Friday relaunched its stain removal brand Vanish in the premium segment.
"Vanish has been the global no 1 brand present across 70 countries, including India. The new Vanish has been tailor-made keeping in mind the evolving consumer needs," said RB Hygiene Home Global Category Director Abhishek Chuckarbutty.
The company expects Vanish to be a segment leader in the Indian market also.
Presently, the India FMCG market is facing sluggish trend as the rural sales growth has slowed down.
According to a report by data analytic firm Nielsen, the FMCG sector in India will face a slowdown in 2019 with a growth rate of around 9-10 per cent impacted by a dip in demand, particularly in the rural areas.
The FMCG growth rate for the first half of 2019 is around 12 per cent, which is lower than the previous forecast of 13-14 per cent, it said.
"At this point of time, our focus is on category development. We have to stay and are patient about building our businesses," Aneja said.
According to her, "India is a srategic market for India, which is growing" and the group has given "priority" to it in the emerging/developing markets.