The FMCG sector, which has been moving at a sluggish pace, has sought fiscal incentives to boost growth. Modern retailing techniques are also expected to proper sectoral growth.
"There should be different tax structure for diffferent stock keeping units (packs). The taxation mechanism should be designed in such a manner that products in the price category of less than Rs 5 should come under one tax bracket and accordingly should the other products be taxed," said CK Ranganathan, managing director of CavinKare Ltd at third National FMCG conclave organised by the Confederation of Indian Industry in Mumbai.
According to Harsh Bahadur, managing director of Metro Cash & Carry India, modern methods of trading and distribution systems should dominate to increase growth of the FMCG business. Also there is a need for modern retailing if the produced goods have to be sold.
While Sandeep Sule of ITC said that even 20 yrs hence the kiranas and panwallas would not fade away and continue for a long time to come.
By 2008, retail industry turnover would be around Rs 11940 billion (Rs 119.4 billion) and the contribution of the organized retail will be 2.3 per cent.
Modern retail has emerged as an important aspect in Indian retail Industry; change is the only thing constant and many of these stores will modernise.
"FMCG will have to attend to the development of brand and development of demand to have a fast growth in the long run, Ranganathan added.
For future growth, according to eminent speakers, needs a right mix of strategic thought. There should be a balance in the art of marketing and the science of sales to induce growth in the FMCG industry.
Prof Bala Balchandran, Kellogg's, describes that the way forward for the FMCG sector is the 4 M's of marketing-measure, monitor, manage and maximise. In other words, measure both in terms of revenues and cost, monitor their movements, manage the action plan by yield management and maximise profitability.
"There's a need to create iconic brands with powerful brand ideas, which can be brought to life in meaningful and multiple ways, said Gopal Vittal of Hindustan Lever while talking on marketing is larger than just advertising.
"While Arvind Sharma of advertising firm Leo Burnett, said "For FMCG, advertising is the only thing that counts though there are other marketing tools to communicate to the target audience such as product, price etc."
