Quick commerce is snowballing
PackMan learnt that the average order values on quick commerce have been raging high as well: BlinkIt stands at INR 660, Swiggy Instamart at INR 487, Zepto ranged from INR 430–470, and BigBasket’s BBNow saw an average order value of INR 500.

And so, Amazon is set to enter the market with Tez, Flipkart Minutes has begun its operations in Bengaluru and Delhi, PhonePe has entered the game with Pincode, and ClearTrip’s former CEO launched FirstClub. Myntra and Nykaa are set to enter the race too.

Quick commerce began as a platform to bring groceries to your door within one hour. Now, it delivers iPhones and PlayStations to doorsteps. What next? Your dreams?

Milk output growth slowed 3.8% in FY24
According to data from questions answered in the Rajya Sabha, India’s yearly milk production growth slowed to 3.78% in 2023-24. India is the largest producer of milk in the world, at 239.3-million tonnes.

PackMan recalls what Jayen Mehta, Amul’s MD said, "In India, even if 5% of the people shift from loose to packaged milk, it can create one more Amul"  

That's a USD 9-billion company with 300 lakh litres of milk daily.

Reliance is back at price disruption
PackMan has been noticing Reliance Consumer Products pricing its products lower than its competitors — waging a price war in general trade channels. Reportedly, it offers double margins to its distributors to boost the sales of its grocery and daily household products.

Readers of this column will recall, Reliance procured the iconic brand Campa Cola for INR 22 crore. Then, Reliance relaunched three flavours Cola, Lemon and Orange flavours with a lot of cool colours and chic look, and Campa in PET bottles.

With the lower price point strategy, Reliance is aiming to disrupt like it did in telecom. The key is Reliance's distribution network in tier-two and tier-three centres. 

PackMan says wait and watch to see Campa take the fight to the big two. 

Colgate chants OHM to push more usage
Colgate has launched a massive campaign — the oral health movement. In November, 800-million of its toothpaste packs has QR codes for users to scan for oral checkups. The company produces more than two-billion packs a year.

The company said “Colgate has launched an AI-based WhatsApp chatbot, developed and maintained by Logy.AI, to enable dental screenings and encourage people to go for regular dentist visits as well. It is designed to provide a preliminary oral health assessment, using images to screen for visible caries and stains, and questions to evaluate the likelihood of gum problems.”

FMCG top players can up their portfolios with low-fat products
With the rising consumer awareness, PackMan spied packaged food companies diversifying their product portfolios by including healthier ingredients, less sugars, less salts, and fewer trans fats.

Companies like Nestle, ITC, PepsiCo, and Britannia have hopped onto this bandwagon, and PackMan thinks that it is just the beginning.

Meanwhile the urban slowdown trend continues. FMCG companies have been seeing slower growth in the past two months. 

Company executives have been telling PackMan that they expect a change at the end of the financial year. 

Amid a booming ice cream business, HUL strategises the way ahead
Hindustan Unilever’s ice cream business, which includes the brands Kwality Walls, Cornetto, and Magnum, contributes to roughly 3% of its total revenue. 

In the financial year 2023-24, PackMan noticed that that meant INR 1,800-crore. The company recently declared its strategy for the coming years, with a focus on premiumising its personal care and convenience products.

35% GST slab likely for tobacco, aerated drinks
In what PackMan thinks is a deterrent, the Group of Ministers suggested increasing the tax on tobacco, cigarettes, and carbonated beverages to 35%. The tax levied on these items was 28%. Companies like Varun Beverages (which saw its shares drop by almost 5%) will be impacted by this decision — an example of how high taxes will hinder the country’s carbonated beverage market.