Small firms losing market to big FMCG brands as buyers go for trusted names

Normalcy in operations, push into rural areas aid growth

The window of opportunity that opened for small fast-moving consumer goods (FMCG) companies during the nationwide lockdown seems to be rapidly closing as consumers opt for big, trusted names across rural and urban markets.

Market research agencies, such as Nielsen and Kantar, as well as FMCG firms, say that a return to normalcy in operations and a distribution push into rural areas is aiding the growth of bigger brands.

The tendency to bank on established labels is stronger in a health crisis, says Prasun Basu, president, South Asia, Nielsen.

Small brands had gained in the lockdown months of March, April,