DOCSLIB.ORG

D2C (Direct to Consumer) Business Model: Efficacious Strategy for the Businesses to Grow During COVID-19 Scenario

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
D2C (Direct to Consumer) Business Model: Efficacious Strategy for the Businesses to Grow During COVID-19 Scenario International Journal of Research and Review Vol.7; Issue: 11; November 2020 Website: www.ijrrjournal.com Short Communication E-ISSN: 2349-9788; P-ISSN: 2454-2237 D2C (Direct To Consumer) Business Model: Efficacious Strategy for the Businesses to Grow During COVID-19 Scenario Shikha Bhagat1, Shilpa Sarvani Ravi2 1Assistant Professor, School of Business Studies and Social Sciences, Bannarghatta Road Campus, Christ (Deemed to be University), Bannerghatta Main Rd, Pai Layput, Hulimavu, Bengaluru, Karnataka-560076 2Research Scholar, GITAM Institute of Management, GITAM (Deemed to be University), Endada Rushikonda Rd, Rushikonda, Visakhapatnam, Andhra Pradesh 530045 Corresponding Author: Shikha Bhagat ABSTRACT sectors are increasing rapidly, with FMCG goods accounting for 50 % of total rural Introduction: This paper aims to analyse D2C expenditure .1 No-one knows what the future (direct to consumer) e-commerce strategy used holds, not even the experts, for the first time by businesses or companies to sell to end- in a long time. Luckily, history and social consumers directly during Covid-19 in science provide an insight into how the organized retail. Background: The pandemic has fuelled an pandemic will shift the perceptions, explosion in online shopping, yet too many behaviours and buying habits of consumers. brands are only along for the ride, relying on Naturally, these developments would have a their retail partners to share glimpses of first- disproportionate effect on young people party data that show past demand rather than a during their formative years who are clear and predictive road map to future growth. witnessing the pandemic.2 With D2C The roots of direct marketing date back to trade marketing and D2C sale promotions, major catalogues, among the first tools of direct brands such as luggage manufacturer Away marketing. and office supplies manufacturer Quill have Methods: Existing literature on COVID-19 was already taken the plunge, and we expect analysed through secondary information to more manufacturers to sell in 2020 and identify an explosion of D2C (direct to 3 consumer) brands globally and India and its beyond. effect on business and commerce. Social distancing has increased e- Conclusion: D2C is becoming the strongest commerce adoption and digital platforms weapon of the businesses against counterfeiters for a range of needs will continue to be and growing their brand equity at the same time. embraced by customers. Businesses should also extend their partnerships with e- Keywords: COVID-19, D2C strategy, FMCG commerce sites from third parties while also sector, Organized Retailing. collaborating in new ways, such as deeper data sharing or shared warehousing.4 At the INTRODUCTION same time, they should develop their own There is a long history in the fast- direct-to - consumer capabilities and moving consumer goods industry of improve them. For businesses to have a producing reliable growth through mass strong online and offline presence is brands and undeniable success. The FMCG essential.5 market has risen at a faster rate in rural The pandemic is likely to cause two India in the last few years compared to conflicting social behaviours on an urban India. The semi-urban and rural individual level. COVID-19 offers a perfect International Journal of Research and Review (ijrrjournal.com) 499 Vol.7; Issue: 11; November 2020 Shikha Bhagat et.al. D2C (Direct to consumer) business model: Efficacious strategy for the businesses to grow during COVID-19 scenario. opportunity for a significant segment of the direct enhances customer service, improves population to re-evaluate their existing the voice of your brand, and influence lifestyle decisions, make changes and reset almost every part of the consumer journey.10 their lives. You just need to look at the Since 2016, more than 600 such brands have amount of people who have used their entered the market, gouging up over $1.6 newfound time to exercise, start a new skill, billion in funding. Some of these brands or transition to a profession. Sales of include Lenskart, Licious, Zivame, Boat, Peloton bikes, for example, have jumped Wow Skin Sciences, Healthkart, almost 66 percent and LinkedIn has Mamaearth, MyGlamm, Sugar, Country confirmed that A 3x rise in time spent Delight, Atomberg, etc. Avendus anticipates learning has been recorded.2 consolidation activity in the sector in the Brands are pivoting gradually to a next three-to-four years, either as roll-ups or direct-to - consumer (D2C) market model existing large consumer goods companies with the closing of physical stores. D2C buying D2C brands.11 brands have a streamlined proposition that With the restricted lockdown trend, cuts out stores, which is also an important more and more businesses that typically sell component of their omnichannel approach through third-party retailers are adapting by marketing directly to customers across going direct-to-consumer (DTC) to the 'next smartphone and digital platforms.6 A host of normal'. With legacy brands such as conventional FMCG brands have sprinted PepsiCo, Kraft Heinz and Nike taking a towards a D2C plan since the pandemic. slice of the pie alongside younger, perhaps New entrants include Kraft Heinz at Home more agile competitors such as Glossier and with Heinz and Snacks.com with PepsiCo. Dollar Shave Club, the DTC model is DTC brands have a unique benefit because completely expected to take off to an even of their ability to have one-to-one greater extent this year than last.12 relationships with their customers while gathering useful information that would be LITERATURE REVIEW difficult to gather in conventional retail. Several countries around the world This progressively looks like a two-way resorted to lockdowns to "flatten the curve" partnership in which members of the group of the infection during the coronavirus work with brands to co-create new goods pandemic. These lockdowns meant that and services, something that Pattern Brands millions of residents were confined to their calls "direct with".7 homes, industries were shut down and Adopting Direct to Consumer (D2C) almost all economic activity ceased. The strategies provides many opportunities with global economy is predicted to contract by limited investment for consumer brands to over 3 per cent in 2020, the steepest expand to newer markets, increase sales and recession since the Great Depression of the reap higher margins. There are challenges, 1930s, according to the International of course, too. Due to relatively low entry Monetary Fund (IMF).13 Economies like the barriers to competition as well as the United States, Japan, the United Kingdom, adverse effect it produces on the supply Germany, France, Italy and Spain are chain with the current distributor and projected to contract by 5.9, 5.2, 6.5, 7, 7.2, retailer network, this strategy poses major 9.1 and 8% respectively this year. In the risks.8 Unsurprisingly, Forrester's May 2018 first quarter of 2020, China's GDP fell by study indicated that customers can directly 36.6 percent, while South Korea’s purchase specialised goods from brand production declined by 5.5 percent, as the manufacturers to ensure authenticity9. country did not implement a lockdown but In short, the D2C model implies that pursued an aggressive testing, touch tracing you sell your goods directly to the customer and quarantining policy (IE, 2020). In as a company, and in the process, going Europe, France, Spain and Italy's GDP fell International Journal of Research and Review (ijrrjournal.com) 500 Vol.7; Issue: 11; November 2020 Shikha Bhagat et.al. D2C (Direct to consumer) business model: Efficacious strategy for the businesses to grow during COVID-19 scenario. by 21.3, 19.2 and 17.5 percent respectively.14 Figure1: Global Economic Impact across the world due to Covid-19 Source:https://www.bigcommerce.com/blog/ecommerce-trends/#14-ecommerce-trends-leading-the-way Figure2. Global ecommerce sales 2014-2023 The global ecommerce sales will hit a core pillar of their growth strategy and are $4.2 trillion and make up 16 percent of aggressively scaling up investments to overall retail sales. And these numbers are expand their online offerings and only expected to go up as we progress into geographical reach. This model has its the ‘20s. It is important to keep up with the inherent advantages and disadvantages.16 In latest e-commerce developments, including doing so, they are rethinking their whole both backend efficiencies and frontend brand strategies and reshaping them.17 DTC conversion-optimizing experiences, to businesses will need to implement an expand in the 2020 retail landscape.15 omnichannel approach to retool, establish The FMCG companies will attempt closer links with their communities, and to remove all the intermediate stages integrate vertically to maximise margins.18 between themselves and the customer in A first-difference model is used for D2C. The firm will seek to contact the direct-to - consumer (DTC) agricultural retailer or the customer directly. Most major production in two food and beverage retail FMCG players already have e-commerce as sub-sectors in Arkansas, Louisiana, International Journal of Research and Review (ijrrjournal.com) 501 Vol.7; Issue: 11; November 2020 Shikha Bhagat et.al. D2C (Direct to consumer) business model: Efficacious strategy for the businesses to grow during COVID-19 scenario. Oklahoma, and Texas.19 E-commerce and $24 billion in 2017 to $84 billion in 2021. home delivery will assume a much higher The study ties e-commerce market growth prevalence of customers in the purchase to factors such as increased internet pattern. Years will advance the pace of penetration and increased smartphone use, digitalization of the future market. among others, according to a latest joint Therefore, in the long term, businesses that report by Deloitte and the Retailers digitally transform their route to market and Association of India (RAI). develop robust direct to consumer capabilities, like e-commerce, will win.
Load more

Recommended publications
  • Trent Hypermarket Ties up with Future Consumer Enterprise Ltd to Retail a Wide Range of Products ~A First of Its Kind Tie-Up
    Trent Hypermarket ties up with Future Consumer Enterprise Ltd to retail a wide range of products ~A first of its kind tie-up that aims to bring customers of Star Bazaar, a unique product-price proposition~ Mumbai, 3rd March, 2016: Star, a TATA & TESCO enterprise, has tied up with Future Consumer Enterprise Ltd. (FCEL), to launch a wide range of food and non-food products across Star Bazaar stores. Star Bazaar aims to launch close to 148 SKUs across 10 FCEL brands with a view to provide their customers a unique product price proposition. FCEL’s portfolio includes popular consumer brands in the food category like ‘Sunkist’, ‘Tasty Treat’, “Karmiq” “Desi Atta” and ‘Fresh & Pure’; while “Think Skin”, ‘Clean Mate’ and ‘Care Mate’ constitute the non-food category. The FCEL range will be made available across large format hypermarkets of Star Bazaar in its initial phase. While this alliance offers customers a unique advantage of accessing everyday products at a great price, the launch will also see exclusive offers and promotions for Star’s Club card loyalty members. This association aims to serve the customers an unmatched array of products and introduce services that will see the store as a one stop destination for all daily household needs. Speaking on the launch, Mr. Jamshed Daboo, Managing Director, Trent Hypermarket Ltd. said, “We are excited about our collaboration with Future Consumer Enterprise to retail their flagship brands. With this tie- up, we will be bringing our customers an extensive range of high quality food products and non-food merchandise. Our objective is to enhance our existing range and ensure we address the growing needs of customers to access unique products at affordable price points” Mr.
    [Show full text]
  • Persistence of Caste in South India - an Analytical Study of the Hindu and Christian Nadars
    Copyright by Hilda Raj 1959 , PERSISTENCE OF CASTE IN SOUTH INDIA - AN ANALYTICAL STUDY OF THE HINDU AND CHRISTIAN NADARS by Hilda Raj Submitted to the Faculty of the Graduate School of The American University in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy Signatures of Committee: . Chairman: D a t e ; 7 % ^ / < f / 9 < r f W58 7 a \ The American University Washington, D. 0. ACKNOWLEDGEMENTS I am deeply thankful to the following members of my Dissertation Committee for their guidance and sug­ gestions generously given in the preparation of the Dissertation: Doctors Robert T. Bower, N. G. D. Joardar, Lawrence Krader, Harvey C. Moore, Austin Van der Slice (Chairman). I express my gratitude to my Guru in Sociology, the Chairman of the above Committee - Dr. Austin Van der Slice, who suggested ways for the collection of data, and methods for organizing and presenting the sub­ ject matter, and at every stage supervised the writing of my Dissertation. I am much indebted to the following: Dr. Horace Poleman, Chief of the Orientalia Di­ vision of the Library of Congress for providing facilities for study in the Annex of the Library, and to the Staff of the Library for their unfailing courtesy and readi­ ness to help; The Librarian, Central Secretariat-Library, New Delhi; the Librarian, Connemara Public Library, Madras; the Principal in charge of the Library of the Theological Seminary, Nazareth, for privileges to use their books; To the following for helping me to gather data, for distributing questionnaire forms, collecting them after completion and mailing them to my address in Washington: Lawrence Gnanamuthu (Bombay), Dinakar Gnanaolivu (Madras), S.
    [Show full text]
  • FUTURE GROUP BALANCE FUND SFIN No
    FUTURE GROUP BALANCE FUND SFIN No. ULGF003150210FUTGRBALAN133 ABOUT THE FUND PORTFOLIO AS ON 30-Jul-2021 OBJECTIVE SECURITIES HOLDINGS SECTORAL ALLOCATION Provision of high expected returns with a moderate probability of MONEY MARKET INSTRUMENTS & NCA 15.24% low return. G-Sec 47.27% SECURITIES HOLDINGS STRATEGY GOVERNMENT SECURITIES 47.27% BFSI 12.17% Balances high return and high risk 7.72% Central Government 25/05/2025 28.50% Infrastructure 4.43% from equity investments by the stability 6.90% GOI OIL Bond 2026 04/02/2026 12.32% Basic Metals 2.11% provided by fixed interest instruments. 8.38% Tamil Nadu SDL 27/01/2026 6.44% Computer Programming 2.06% Other Transport Equipment's 1.52% Fund Manager Details No. Of Funds Managed Motor Vehicles 1.46% Fund Manager Equity Debt Hybrid Pharmaceuticals 1.40% Niraj Kumar 5 4 7 Civil Engineering 1.27% Srijan Sinha 5 0 7 Coke & Refined Petroleum 1.23% Yahya Bookwala 0 4 7 Other 25.10% ASSET ALLOCATION Composition Min. Max. Actual Debt Rating Profile Cash and Money Market 0.00% 40.00% 15.24% Fixed Income Instruments 40.00% 90.00% 47.27% Equities 10.00% 40.00% 37.49% 16.73% RISK RETURN PROFILE Risk Moderate Return High 83.27% DATE OF INCEPTION AAA SOV 15th February 2010 BENCHMARK COMPARISON (CAGR RETURN) FUND PERFORMANCE as on 30-Jul-2021 Returns since Publication of NAV SECURITIES HOLDINGS 25.00% 20.95% Absolute Return 185.36% EQUITY 37.49% Simple Annual Return 16.16% Reliance ETF Bank BeES 3.72% 20.00% 17.00% CAGR Return 9.57% Bharti Airtel Ltd.
    [Show full text]
  • MONTHLY Anuncio.Vetina.Productos.V02.Aiseptember 30,1 09/09/2019 2019 17:20:01 Volume 35 No
    Rs. 60/- 25, Thyagraj Nagar Market, Near Thyagraj Stadium, New Delhi - 110003 Phone: +91-11-24617837 l Mobile: 9312700599 Email: [email protected] www.thepoultrypunch.com MONTHLY anuncio.vetina.productos.v02.aiSeptember 30,1 09/09/2019 2019 17:20:01 Volume 35 No. 11 130 Pages Including Cover PRO BOOSTING HEALTH IMPROVING HEPATIC HEALTH THE MYCOTOXIN SHIELD nhancing gastrointes�nal �nhancing li�er f�nc�on �axim�m protec�on health leading to the leading to the against mycotoxin best performance best performance contamina�on� Unique concentrated blend Regenerates hepatocytes Acts against a large range of ac�ve ingredients. and protects liver func�on. of mycotoxins and toxical metabolites. Innova�ve protec�on system. Increases the elimina�on Dismish the gastrointestinal of endo and exotoxins. absortion of mycotoxins. Can also be combined �ith other addi�ves. Increases fat metabolism Protect the rate of villum/crypt and bioavailability of energy. in the large intes�ne. ��ec�ve mode of ac�on. Increases animal performance. Reduce the toxic �p�mi�ed dose metabolites in �ssues. for each produc�on phase. Increases total sale price and margin over feed Improves animal performance efficiently. naturally by your side Natural and cost-effective nutritional solutions for top performance CH AN EA RC Imported & Marketed BY P O R VETINA Healthcare LLP ESEA EU R Dr Ashish Deshpande – [email protected], +91- 9822199644 Dr �haveta �ood – shaveta.sood@ve�na.com, +91-7020�96946 E IN Cc no. – 020-67445858, +91-7506562266 P O �ail id� customerservice@ve�na.com R MADE EU 2 September, 2019 September, 2019 3 4 September, 2019 POULTRY PUNCH September, 2019 5 POULTRY PUNCH 6 September, 2019 POULTRY PUNCH September, 2019 7 POULTRY PUNCH 8 September, 2019 POULTRY PUNCH Vol.XXXV No.
    [Show full text]
  • India M&A Awards
    IINNDDIIAA MM&&AA AAWWAARRDDSS CONGRATULATIONS: FINALIST CIRLE The Annual INDIA GROWTH INTELLIGENCE FORUM and GALA DINNER & AWARDS CELEBRATIONS December 13, 2013, Grand Hyatt, Mumbai, India. November 21, 2013: Global M&A Network enthusiastically announces the finalists for the coveted India M&A Awards. The winners of one of the oldest and internationally recognized industry awards, are honored at the exclusive annual gala dinner held on December 13, 2013, in Mumbai. Top M&A DEALS, OUTSTANDING FIRM and DEALMAKER TEAMS of the YEAR winners are be announced at the awards gala following the exclusive executive INDIA GROWTH INTELLIGENCE Forum roundtable meeting. The "Gold Standard of Performance" logo sends a definitive message that the winner has achieved the highest international standards of excellence. INDIA M&A AWARDS is part of the prestigious ASIA PACIFIC M&A ATLAS AWARDS global brand. WHAT to DO if you are among the TOP FINALISTS? Many congratulations on making the highly competitive list of outstanding finalists circle. We encourage you to contact us for additional details. Importantly, we recommend confirming your participation and reservations for the INDIA GROWTH INTELLIGENCE FORUM and the AWARDS GALA. INDIA GROWTH INTELLIGENCE FORUM, an exclusive gathering of senior-level corporate, private equity, venture capital, entrepreneurs and related industry participants to explore factors impacting the "growth story" in the context of the economy and 2014 Elections. SHOW YOUR Intellectual Capital, To speak, contact, program advisor ► Meghna Suryakumar, Founder & Managing Attorney, Kelsaa Tel: +91 974 008 4883(IN) E: [email protected] AWARDS GALA CELEBRATIONS: Winners are honored at the gala ceremony, and finalists nominees and winners must attend the awards gala to be honored by accepting their trophy.
    [Show full text]
  • Hybrid 2.0 the Next-Gen Work Model Is Here to Stay
    Hybrid 2.0 The next-gen work model is here to stay An e-commerce sector perspective People Advisory Services June 2021 Hybrid 2.0 The next—gen work model is here to stay Organizations have successfully adopted remote work models to ensure business continuity in unprecedented times. However, as we strive towards a new equilibrium, stabilizing after the second wave of the pandemic, there is an opportunity to fundamentally reimagine our workforce and workplace strategies. Future focused e-commerce organizations are taking a lead in deliberately designing a sustainable hybrid work model that will enable them to optimize their service delivery, expand customer reach and overhaul their existing talent landscape, in expected and unexpected scenarios; thereby adding to their competitive edge. Market leaders will transform, others will transition. 2 Hybrid 2.0 - The next—gen work model is here to stay 01 Context and introduction 5 02 About this study 7 03 Executive summary 9 An enduring shift towards 04 11 hybrid work models Designing “fit—for— 05 purpose” hybrid work 13 models 06 Conclusion 21 07 About the team 23 Contents 3 Hybrid 2.0 - The next—gen work model is here to stay Partner quotes Ankur Pahwa Neha Sharma Partner & National Leader – Partner - People Advisory Ecommerce & Consumer Services, EY Internet, EY The surging post-pandemic There is no ‘one—size—fits—all digital economy has ignited a approach’ for bringing battle for retaining and employees back to work. recruiting employees and Companies are testing which companies will need to define strategy fits best for their strategies to compete for top business, culture, and long— “talent and manage a hybrid “term success.
    [Show full text]
  • Annual Report 2015-16 | 3
    CORPORATE INFORMATION BOARD OF DIRECTORS BANKERS V. K. Chopra IDBI Bank DIN: 02103940 Indian Overseas Bank Chairman & Director (From May 4, 2016) Kishore Biyani South Indian Bank DIN: 00005740 State Bank of India Managing Director (up to May 1, 2016) Vice-Chairman & Director (from May 4, 2016) ECL Finance Ltd. Rakesh Biyani Corporation Bank DIN: 00005806 State Bank of Patiyala Joint Managing Director (up to May 1, 2016) Vijay Biyani REGISTERED OFFICE DIN: 00005827 Knowledge House, Shyam Nagar, Managing Director (from May 4, 2016) Off. Jogeshwari-Vikhroli Link Road, S. Doreswamy Jogeshwari (East), Mumbai - 400 060. DIN: 00042897 Tel + 91 22 66442200 Director Fax + 91 22 6644 2201 Anil Harish CORPORATE OFFICE DIN: 00001685 247 Park, ‘C’ Tower, LBS Marg, Director Vikhroli (West), Mumbai - 400 083. Bala Deshpande Tel + 91 22 61990000 DIN: 00020130 Fax + 91 22 61995019 Director Website: www.felindia.in Dinesh Maheshwari DIN: 00088451 INVESTOR EMAIL ID Executive Director & Chief Financial Officer [email protected] (from May 4, 2016) Corporate IDENTITY NUMBER STATUTORY AUDITORS L52399MH1987PLC044954 NGS & CO. LLP. RISK ADVISORS Ernst & Young Pvt. Ltd. COMPANY SECRETARY Deepak Tanna SHARE TRANSFER AGENTS Link Intime India Pvt. Ltd. C-13, Pannalal Silk Mills Compound, LBS Marg, Bhandup (West), Mumbai - 400 078. Tel + 91 22 2594 6970 Fax + 91 22 2594 6969 2 | FAST FORWARD INDIA CONTENTS 02 CORPORATE INFORMATION 05 Message from Vice Chairman 06 RETAIL INFRASTRUCTURE 08 INVESTMENTS 13 MANAGEMENT DISCUSSION & ANALYSIS 17 DIRECTORS’ REPORT 48 CORPORATE GOVERNANCE REPORT 65 10 YEARS FINANCIAL SUMMARY 66 INDEPENDENT AUDITOR’S REPORT 70 BALANCE SHEET 71 PROFIT & LOSS ACCOUNT 72 NOTES FORMING FINANCIAL STATEMENTS 98 STATEMENT OF CASH FLOW 100 AUDITOR’S REPORT ON Consolidated ACCOUNTS 104 CONSOLIDATED ACCOUNTS FEL | ANNUAL REPORT 2015-16 | 3 Dear Stakeholders MESSAGE FROM We are pleased to present to you the Annual Report of your company, Future Enterprises Limited for the financial year 2015-16.
    [Show full text]
  • Trade, Law and Development
    Summer, 2020 Vol. XII, No. 1 Trade, Law and Development Trade in Services: A Holistic Solution to New- Found Issues in Trade Law? FOREWORD Trade, Law & Development: A Year in Review EDITORIAL Ipsiata Gupta & Radhika Parthasarathy, Trade in Services: A Tool to Redress Unemployment? ARTICLES Rudolf Adlung, The GATS: A Sleeping Beauty? Petros C. Mavroidis, And You Put the Load Right on Me: Digital Taxes, Tax Discrimination and Trade in Services Andreas Maurer, Overview on Available Trade Statistics and Tools to Assess Trade in Services Markus Krajewski, The Impact of Services Trade Liberalisation on Human Rights Revisiting Old Questions in New Contexts Hildegunn Kyvik Nordås, Telecommunications: The Underlying Transport Means for Services Exports Weiwei Zhang, Blockchain: Replacing, Eliminating and Creating Trade in Services Mira Burri, Trade in Services Regulation in the Data-Driven Economy Pralok Gupta & Sunayana Sasmal, The Curious Case of Trade Facilitation in Services: Rejected Multilaterally but Adopted Bilaterally and Plurilaterally Ben Shepherd, Quantifying Trade Law: New Perspectives on the Services Trade Restrictiveness Index Sunanda Tewari & Prakhar Bhardwaj, Situating India’s Mode 4 Commitments in Geopolitics and Political Economy: The Case of GATS 2000 Proposal, India- Singapore CECA and India-ASEAN TiS NOTES Anirudh Shingal, Aid for Trade in Services: Definition, Magnitude and Effects ISSN: 0976 - 2329 eISSN: 0975 - 3346 Trade, Law and Development Vol. 12, No. 1 2020 PATRON Hon’ble Prof. Poonam Saxena FACULTY-IN-CHARGE Dr. Rosmy Joan EDITORS-IN-CHIEF Ipsiata Gupta Radhika Parthasarathy EDITORS Ayushi Singh Gautami Govindarajan Apoorva Singh (SENIOR EDITOR) (MANAGING) ASSOCIATE EDITORS Abilash Viswanathan Abhinav Srivastav Amogh Pareek Anjali Sasikumar Sahil Verma Sukanya Viswanathan Tania Gupta COPY EDITORS Aastha Asthana Aniketa Jain Neerali Nanda Rashmi John Shlok Patwa Suvam Kumar Swikruti Nayak CONSULTING EDITORS Ali Amerjee Manu Sanan Meghana Sharafudeen Dishi Bhomawat Prateek Bhattacharya Shashank P.
    [Show full text]
  • Building for a Healthier Future
    Building For a Healthier Future Nestlé India Limited Annual Report - 2018 The Board of Directors of Nestlé India Limited (From left to right) Shobinder Duggal (Director - Finance & Control and CFO) Rama Bijapurkar (Non Executive Director) Rakesh Mohan (Non Executive Director) Roopa Kudva (Non Executive Director) Rajya Vardhan Kanoria (Non Executive Director) Ashok Kumar Mahindra (Non Executive Director) Swati A. Piramal (Non Executive Director) B. Murli (SVP - Legal & Company Secretary) Suresh Narayanan (Chairman & Managing Director) Martin Roemkens (Director - Technical) Index 3 Message to Shareholders 12 Building a Healthier Business 19 Board’s Report 4 Enhancing Quality of Life and 37 Auditors’ Report 17 Corporate Information Contributing to a Healthier Future 00 Annual Accounts 5 Building a Healthier Society 18 10 - Year Financial Highlights 00 Dividend Distribution Policy Annexures to the Board’s Report Annexure 1: Report on Corporate Annexure 3: Annual Report on Annexure 4: Business Responsibility 00 00 00 Governance CSR Activities Report Annexure 5: Secretarial Annexure 7: Report on Conservation Annexure 8: Information Regarding 00 00 00 Audit Report of Energy etc. Employees and Related Disclosures The health of our Company is intrinsically linked to the health and resilience of the society we operate in. We aim to make a positive impact and create maximum value for the communities. We focus on enabling healthier and happier lives for individuals and families, helping develop thriving and resilient communities and stewarding the planet’s natural resources for future generations. Dear Shareholders 2018 has been memorable and a year of many ‘firsts’. for Mother and Child. It has reached out to over 4.5 We started the year on a bright note, as by the end million beneficiaries on creating awareness in the of 2017 we became the first listed pure play food communities on issues related to health, nutrition, and beverage Company in India to reach a milestone and sanitation (HNS), in alignment with the national crossing INR 10,000 crore in revenue.
    [Show full text]
  • 2012 Outlook for the Retail and Consumer Products Sector in Asia
    www.pwc.com 2012 Outlook for the Retail and Consumer Products Sector in Asia Carrie Yu China & Asia Pacific Retail and Consumer Leader PwC Foreword As the economic and financial crisis in retailing will bring enormous benefit Furthermore, companies must remain the euro zone deepens and the outlook to retail and consumer products focused on serving their customers and for the US economy is far from certain, companies, while at the same time, be sensitive to their employees, since 2012 looks almost certain to be a industry players in the US and Europe they too are similarly affected by the difficult year. Asia unavoidably is will also stand to gain from such economic woes and uncertainties. affected by the fallout and economic growth in multi-channel retailing for a growth is expected to be slower than long time to come. History has proven time and again that the previous year. However, as growth those who have overcome challenges in retail and consumer goods in Notwithstanding the opportunities, will emerge not only more adaptive but Western markets is anticipated to be the challenges of sustaining growth in also stronger and more committed to sluggish in the foreseeable future, a volatile global economy remain to be their core values, thereby making them emerging Asian markets hold out more daunting. Retail and consumer successful and sustainable. robust promises for growth and products companies are renowned for expansion. Indeed, Asia will remain their resilience and persevering spirit. I would like to express my deep the main engine of global retail In times of difficulty, the industry gratitude to Chairman Zhang Jindong growth.
    [Show full text]
  • Investor Presentation March 17 Table of Content
    Investor Presentation March 17 Table of content 1 Indian Consumer Evolving 03-07 2 Integrated Food & FMCG Company 08-28 Q3 FY17 and 9M FY17 – At a Glance 09 Brands 10-18 Distribution Network Spanning across Channels 19-20 Sourcing and Manufacturing 21-24 Board of Directors & Key Management 25-28 Financial Update 29-37 3 Performance Overview - Q3 FY17 / 9M FY17 30-31 Consolidated Income Statement 33 Consolidated Balance Sheet 35 Marquee Consumption Focused Funds Invested in FCL 36 4 FCL INITIATED AN ERA OF FMCG 2.0 38-41 Indian Consumer is Evolving…. Confident Young, and and Experimental Expressive Globally Wedded to Aware choice and convenience Investor Presentation 3 More Value for their Time Indian house makers spend 13.2 hours within the kitchen, compared to global peers who spend just 6 hours Quality, consistency and value- added basic food to make time more productive Source: GFK Research Investor Presentation 4 Premium and Value Ad FMCG Products Barely one-third of the US$185 billion FMCG market is branded, dominated by home and personal care and tobacco products. Demographic and income changes are moving consumption towards discretionary food items such as snacks, savories, juices, ready to cook packs growing at 3-4X over next five years. Consumers are looking at premium products and value ads Source: Boston Consulting Group Investor Presentation 5 Safer and Holistic Home and Personal Care Options Over 80% of India’s home and personal care market, estimated to be around US$ 28 billion, is branded Yet existing brands face new challenges with changes in consumer preference towards premium products Healthier options that take care of body Source: FMCG market details are as per Boston Consulting Group research Investor Presentation 6 What do we Offer? FCL is tapping into the unmet needs and unexpressed desires of this generation to create an organization that is geared to deliver..
    [Show full text]
  • Future Retail
    INITIATING COVERAGE FUTURE RETAIL In pole position India Equity Research| Retail Future Retail (FRL), India’s numero uno grocery and second largest EDELWEISS 4D RATINGS fashion retailer with an asset‐light model, recorded impressive double‐ Absolute Rating BUY digit same stores sales growth (SSSG), pruned inventory (down 5 days in Rating Relative to Sector Outperform FY17) and improved RoE to ~17% in FY17. Still a lot of steam is left– Risk Rating Relative to Sector Low inventory days improvement (decline to 95 in FY19 from 106 in FY17) and Sector Relative to Market Underweight ~12% SSSG over FY17‐19E. Margins will uptrend gradually steered by private labels and Easy Day turnaround. We estimate FRL to post sales, EBITDA and PAT CAGR of 18.9%, 31.3% and 57.4%, over FY17‐19. We MARKET DATA (R: NA, B: FRETAIL IN) assign 25x EV/EBITDA multiple and initiate with 'BUY' and TP of INR516. CMP : INR 394 Target Price : INR 516 52‐week range (INR) : 411 / 116 Structural shifts to sustain SSSG, organised retailers gainers Share in issue (mn) : 471.8 Structural catalysts of: 1) high inflow to banks driving spike in non‐cash spends; and 2) M cap (INR bn/USD mn) : 186 / 2,886 GST leading to consolidation, have catapulted organised retailers to pole position. Avg. Daily Vol.BSE/NSE(‘000) : 585.8 Retail bellwether, FRL, with its strong reach (901 stores covering 240 cities), consumption events (public holiday sales etc), brand investments (fbb sponsoring IPL, SHARE HOLDING PATTERN (%) Femina, Big Bazaar GenNxt stores), loyalty programs (members spend 3x that of non Current Q4FY17 Q3FY17 members) and big data analytics (28.5mn members) is fast emerging the consumers’ Promoters * 49.5 49.5 48.9 delight.
    [Show full text]