Consumer Goods

The consumer goods market in India is experiencing a rapid transformation as more brands (global, traditional, and D2C) enter the segment, and customers have an unprecedented array of choices. As a result, customers now have higher expectations from brands.

The segment is slated for positive 7-9% growth in 2023 after the ease of inflationary pressure and disappointing performance in FY22.

Key Drivers in Consumer Goods

80% of households in India will belong to middle class by 2030

Decrease in product price by 13% between Q3 and Q4 FY22

Gradual increase in advertisement spend by 7-10% due to competitive pressure

Rural Market volume growth of 0.3% after 6 quarters of disappointing performance

Urban market leading growth by 5.3% in Q4’FY23

Growth of mid and high-value packs by 2.7% and 4.1%, respectively, and degrowth of low-value packs

At Qwixpert, we understand the challenges this evolving landscape poses and possess extensive experience in providing effective solutions. Allow us to outline the three key trends impacting the consumer goods industry:

  • Cost-pressure and inflation: Rising input prices and tightening consumer budgets due to inflation puts pressure on margins. In FY22, companies saw a ~15% decline in profitability due to 8-10% input price increase. Focusing on margin optimization in existing products is crucial to ensure businesses can handle inflation. For example, we recently collaborated with a leading FMCG (Personal and Home Care) company, achieving a significant savings potential of 8%. By redesigning the outbound distribution network, we streamlined processes such as reducing the number of CFA’s, optimizing material touchpoints, and implementing warehouse cost optimization measures.
  • Development of new business models to maximise coverage: Catering to the customer demand for sustainably designed, customised, yet affordable products, the D2C segment is set to record a 40% YoY growth. Owing to lower establishment costs, these brands target emerging segments like male grooming, natural beauty (1.5x growth of overall market), etc. Companies like Honasa Consumer, Good Glam, etc., have unlocked new revenue sources by developing a house of brands. Traditional brands are also evaluating growing segments, and the acquisition of Raymond consumer care by the Godrej group and Beardo by Marico is a testament to the growing interest in white-space explorations. We have assisted businesses in evaluating the potential of new market segments, taking into account the lucrativeness and investment requirements. Through detailed profiling of micro-market behaviour, evaluating the growth opportunities for the product, and considering the organisational capability development, we can help you unlock the next-level growth for your company.
  • The rise of digital customers and channel conflicts: With e-commerce sales growing by ~70% and 74% growth of order value, digital penetration of non-food FMCG is set to rise further as the segment is expected to contribute 11% (of overall FMCG) by 2030 and reduce the share of General Trade (GT) channel. This shift presents three key challenges:
    • Establishing appropriate margins and incentives for GT: The margin structure for the GT channel is typically based on ROI. The recent loss of sales volume in GT due to deep discounting and better margins in online B2C and B2B channels is threatening profitability for GT channels. Considering the indomitable reliance on GT in Indian retail, it’s imperative to avoid channel conflicts, support GT channel partners through monetary relaxations, and improve operations performance to compete with new-age players. We have assisted an FMCG company in conducting bottom-up calculations to determine the right margins and incentives for GT partners. The projects ensured the client’s continued relevance in an evolving market and facilitates sales growth and efficiency improvement.
    • Enhancing efficiency in order fulfilment from CFA: Secondary order fulfilment for MT/ E-com is more challenging due to nuances like appointment-based deliveries, detainment, etc. Since CFAs cater to both the general trade and the other trade channels, secondary logistics costs are often high across all channels due to larger fleet sizes, lower utilisation rates, and improper dispatch planning. Drawing upon our experience in secondary logistics, we have developed a proprietary tool that optimizes route planning. We have incorporated this tool during an engagement with a large FMCG personal care brand, and through dynamic route selection, fleet size optimization, and vendor negotiations; we ensured cost-effective delivery within stipulated service levels across all channels.
    • Leveraging customer data insights: Through salesforce integration till secondary sales and shift of sales to online modes, companies have access to the data of individual consumers. The data can indicate customer trends such as pack size, price sensitivity, typical bundling, etc. With the shift towards digital sales, being able to draw targeted insights from data will generate a competitive advantage. It opens up the potential of reaching out to consumers via multiple digital mediums and seamlessly integrating the online and offline buying experience.

At Qwixpert, we recognize this as an opportunity for brands to offer innovative experiences and acquire new customers. By working with us, you can enhance your business’s resilience and develop strategies for achieving next-level performance in the evolving consumer market, all while maintaining a sharp focus on profitability.

Let us guide you through this transformative journey and help you thrive in the dynamic world of consumer goods.

What can we do?

Our Solutions for Consumer Goods Industry

Business Plan

We specialize in developing comprehensive long-term plans for business expansion – new geographies, adjacent products, and new business divisions. Our team will work closely with you to create a strategic roadmap that maximizes your growth potential. Our roadmap will include investment requirements, organisation capacity building, and stakeholder requirements.

Business Extension Strategy

Building a house of brands reduces the cost of customer acquisition and leverages existing sales and distribution infrastructure for growth. We can help you profile the industry to identify niche but growing segments and identify investment opportunities that support your strategic goals.

Product Strategy

o Innovation is a crucial competitive edge, and our product strategy expertise can help you design the right offering for the customer. Based on consumer profiling and competitive benchmarking, we can identify the product gap in the market. Our skilled consultants will thoroughly evaluate the business case for new product development, helping you make informed decisions that align with your goals.
o For your existing product portfolio, we can optimise the product-market fit. By considering both financial and operational efficiency, we ensure your products resonate with your target audience while maximizing profitability.

Go-To-Market Strategy

We excel at identifying “white spaces” within micro markets – penetration and coverage gaps, allowing you to discover new avenues for growth. We develop customized sales growth strategies tailored to specific micro-markets, taking into account factors such as geography, channel, and product segment.

Brand Communication and Marketing

Effective brand communication is essential for building a strong presence in the market. We help determine the right brand communication strategies based on your desired brand perception. Our experts work closely with you to develop a marketing mix that aligns with your brand values and resonates with your target audience.

Pricing Strategy

Pricing should not only maximize revenue but also supports your marketing objectives and maintains a competitive edge in the market. We can help you formulate the right pricing strategy by analysing your cost structure and market dynamics to determine the optimal pricing that balances profitability and competitiveness. We also evaluate the margin for channel partners – retailers, stockists, and distributors based on their investments and ensure that pricing aligns with your promotional efforts, creating a cohesive and impactful marketing mix

Sales Analytics

We will help convert your data to insights by leveraging our industry experience and analytical skills. We can develop trackers and dashboards to ensure that leading trends are detected, and you can plan for disruptions.

Procurement Cost Reduction

We analyze your material sourcing and inbound logistics processes to identify opportunities for cost savings. By implementing better procurement strategies and optimizing supplier relationships, we help you reduce procurement costs without compromising quality.

Logistics Cost Reduction

We evaluate your primary and secondary logistics operations and identify optimisation scope through network design, route optimization, and better vendor negotiations. By streamlining your logistics processes, we help you minimize transportation costs and improve overall supply chain efficiency.

Warehouse Strategy and Design

Our team can assist with warehouse design, whether you’re setting up new facilities or optimizing existing ones. We consider factors such as manual, mechanized, or automated solutions and provide investment and payback calculations. Our goal is to help you create efficient warehousing solutions that reduce operational costs.

Indirect Cost Reduction

Besides direct costs, we focus on systematically reducing indirect costs that impact your margins. Our experts analyze various areas such as media procurement, office administration expenses, travel expenses, and freight costs. By identifying opportunities for cost savings and implementing effective cost-reduction strategies, we help you enhance profitability.

Our in-house products can help get to solutions faster

Our Technology

Our insights

In FY23, the Indian FMCG Industry witnessed a growth rate of 8%, lower than the previous year’s 11%. Despite a YoY dip of 7% in ROCE, the industry maintains a respectable median of 28%, reflecting its resilient performance.

Demand Generation

Marketing expenses has slightly grown by 6% to contribute 9% of the revenue generated. Compared to revenue growth of 8%, marketing expenses stay on the safer side.


Driven by inflation and a significant increase in raw material costs, procurement expenses in the industry grew by 10%, representing a substantial 48% contribution to the revenue generated. Additionally, payable days declined by 5% to reach 45 days.


Manufacturing expenses has grown by 7% primarily driven by increased fuel price. Concurrently, the industry has witnessed a significant growth of 8% in fixed asset turnover (Median is 5.12).

Order Fulfilment

Median FG inventory days is 39. In the backdrop of sales growth and rising fuel prices, logistics costs (contributing 3% of revenue) witnessed an increase of 10%.


Median debt-equity ratio is 0.47; Administrative cost surged 61% to account 2% of the total revenue

Analysis: Growth VS RoCE

To benchmark your company against peers, please connect with us

Read More Insights: