FMCG companies endorse methods to increase premium sales

Nestle India will be launching one of its premium coffee and boutique brands, Nespresso in India by the end of 2024. The company aims to bring the best quality for its products through hiring tasters. The goal is to understand the consumer demand better in the premium space segment.

Suresh Narayanan, chairman and managing director, Nestlé India said, “In recent years, coffee consumption in India has witnessed a surge, with a discernible trend towards in-home consumption. A growing young population, exposure to global trends, and new experiences has established India as one of the fastest-growing coffee markets for Nestlé.”

On the other hand, ITC is relying heavily on AI and ML to predict consumer demands and behaviour. This also helps the company narrow down the best suited packs for the particular market, retail stores or supply chain. One of its applications is ITC’s premium brand, Fabelle Chocolates.

More companies like Tata Consumer Products, Parle Products, Britannia, Amul and Parag Milk Foods are also adopting various methods in order to leverage push for their premium products by microsegmenting consumers.

Tata Consumer Products recorded its premium products surpassing the company’s overall growth. This proves that premiumisation is the company’s big agenda, and plans to capitalise more on this market.