Fmcg
February 2013
What do the Asian and Indian FMCG markets look like? p2/Defining innovation p3/The FMCG innovation imperative p4/ How does FMCG innovation differ between China and India? p7/Concluding commentsp8
The Indian FMCG sector
The innovation imperative
What do the Asian and Indian FMCG markets look like?
Rising incomes, escalating demand, new products: FMCG perspectives in Asia, including India
Asia’s FMCG market
Selected FMCG trends in Asia*
India’s FMCG market
Selected FMCG Trends in India
Soaps and cleansers: Market demand growth (% change pa) Asia and Australasia China Hong Kong India Japan Food, beverages, tobacco: Market demand growth (% change pa) Asia and Australasia China Hong Kong India Japan
2011 5.9 12.0 8.6 11.1 -0.6 2011 3.0 4.2 5.1 -0.5 2.7
2012 7.0 12.7 6.8 9.9 2.4 2012 2.8 2.8 4.6 1.6 2.7
2013 5.9 9.7 3.7 10.5 1.5 2013 3.6 1.6 5.1 0.9 1.9
2014 5.8 9.3 3.4 9.8 1.4 2014 3.3 1.4 4.6 0.7 2.3
2015 5.3 7.3 3.0 9.8 1.0 2015 2.7 1.0 4.7 0.4 2.3
Source: PwC analysis
*Source: PwC’s 2012 Outlook for the Retail and Consumer Products Sector in Asia
2
PwC
Defining innovation
Different innovation types exist to serve different objectives: Breakthrough and radical extend beyond the incremental
Incremental innovation
• Small changes in existing products and services via improvements in technology or changes to the business model • Typically 5 to 25% improvements in cost, performance or customer value (i.e. speed, value, price) • Characterised as better, faster, cheaper products and services that do not drive above average revenue growth
Breakthrough innovation
• Significant change to either the technologies or business models of a product or service • Based on entirely new components of technology or business model or new ways to organise and use existing components • Typically greater than 25% improvement in cost, performance or customer value • Significant new competitive advantages that drive
What do the Asian and Indian FMCG markets look like? p2/Defining innovation p3/The FMCG innovation imperative p4/ How does FMCG innovation differ between China and India? p7/Concluding commentsp8
The Indian FMCG sector
The innovation imperative
What do the Asian and Indian FMCG markets look like?
Rising incomes, escalating demand, new products: FMCG perspectives in Asia, including India
Asia’s FMCG market
Selected FMCG trends in Asia*
India’s FMCG market
Selected FMCG Trends in India
Soaps and cleansers: Market demand growth (% change pa) Asia and Australasia China Hong Kong India Japan Food, beverages, tobacco: Market demand growth (% change pa) Asia and Australasia China Hong Kong India Japan
2011 5.9 12.0 8.6 11.1 -0.6 2011 3.0 4.2 5.1 -0.5 2.7
2012 7.0 12.7 6.8 9.9 2.4 2012 2.8 2.8 4.6 1.6 2.7
2013 5.9 9.7 3.7 10.5 1.5 2013 3.6 1.6 5.1 0.9 1.9
2014 5.8 9.3 3.4 9.8 1.4 2014 3.3 1.4 4.6 0.7 2.3
2015 5.3 7.3 3.0 9.8 1.0 2015 2.7 1.0 4.7 0.4 2.3
Source: PwC analysis
*Source: PwC’s 2012 Outlook for the Retail and Consumer Products Sector in Asia
2
PwC
Defining innovation
Different innovation types exist to serve different objectives: Breakthrough and radical extend beyond the incremental
Incremental innovation
• Small changes in existing products and services via improvements in technology or changes to the business model • Typically 5 to 25% improvements in cost, performance or customer value (i.e. speed, value, price) • Characterised as better, faster, cheaper products and services that do not drive above average revenue growth
Breakthrough innovation
• Significant change to either the technologies or business models of a product or service • Based on entirely new components of technology or business model or new ways to organise and use existing components • Typically greater than 25% improvement in cost, performance or customer value • Significant new competitive advantages that drive