Parle, the beloved biscuit brand owned by Parle Products, has once again reaffirmed its status as India’s top FMCG brand. According to the latest edition of Brand Footprint, an annual ranking by Kantar Worldpanel, Parle continues to be the most favored choice among Indian consumers. Even more noteworthy is the trend of homegrown companies taking the lead, with an impressive seven out of the top 10 brands proudly representing India’s entrepreneurial prowess.
The Brand Footprint study employs a comprehensive ranking system based on consumer reach points (CRPs), a metric that considers both a brand’s penetration (number of households buying the brand) and frequency of purchase. Among the nearly 400 brands evaluated, Parle has consistently dominated the charts since the inception of the brand footprint eleven years ago, amassing an impressive 7449 million CRPs. Following closely behind is Britannia, a renowned dairy brand, with a substantial CRP of 6691 million. Both Parle and Britannia experienced remarkable growth, with a 9% and 16% increase, respectively.
Intriguingly, breaking the food-dominated top five brands is Hindustan Unilever’s shampoo brand Clinic Plus, the sole non-food exception. These brands’ consistent performance underscores their strong resonance with Indian consumers and their ability to secure significant market presence in terms of both household reach and purchase frequency.
“Consumer choice is the ultimate strength test for a brand. Over the years, consumers are making increasing trips for purchase and that adds their options and in turn their choice. This is reflected in the constant increase in CRPS we observe,” said K Ramakrishnan, Managing Director- South Asia, Worldpanel Division at Kantar.
In the fiscal year 2022, Parle Products, known for its popular brands like Parle G, Monaco, and Melody, achieved a significant milestone by surpassing $2 billion in annual revenues. This remarkable accomplishment not only solidifies its position as a leading packaged food company in India but also marks the first time any such company in the country has achieved this impressive feat.
Additionally, the report examined out-of-home consumption patterns, revealing that all of the top five brands in this category belong to snacking products. Leading the rankings is Britannia, boasting 498 million CRPs (consumer reach points), closely trailed by Haldiram’s, Cadbury, Balaji, and Parle, showcasing their widespread popularity among consumers on the go.
“As purchases for out of home consumption are on the rise and seem to have different choice triggers, we found it necessary to introduce a ranking specifically for these categories, where there is a significant out of home component,” added Ramakrishnan.
During the last fiscal year, Indian consumers made approximately 152 shopping trips to grocery stores, marking a record high. However, despite the increased store visits, the amount of their purchases has decreased. Particularly, consumers with lower incomes are now making purchases once every 52 hours, or nearly once every two days, as the impact of rising inflation prompts them to tighten their expenses.
In response to these economic challenges, most companies have opted to implement an alternative strategy instead of direct price hikes. They have reduced the sizes of their product packs, with the average pack now being 20% smaller compared to two years ago. This approach allows companies to mitigate the effects of inflation while still offering their products at accessible price points for consumers.
Over the last two quarters, the majority of companies have taken measures to address inflationary pressures. They have implemented price reductions, increased product grammages, and intensified their advertising expenditures. These efforts have been undertaken as inflationary pressures have started to ease. As a result of these strategies, companies are optimistic about a rebound in volume growth in the coming periods.
“Where required, we did lean in with price reduction, with more amount of grammage to be filled back, and we will see the impact of these changes in consumer behavior and volumes in times to come,” Ritesh Tiwari, Chief Financial Officer at Hindustan Unilever told investors.
