Building an FMCG Brand in India: Insights from WOW Founder Manish Chowdhary

In our discussion with Manish Chowdhary, the founder of WOW, a popular hair care brand from India, we dove into the nuances of brand building in a fast-moving consumer goods (FMCG) industry. An entrepreneur hailing from Indore, India, Chowdhary shares valuable insights on how his company has achieved success in India and beyond.

Key Takeaways:

• Importance of customer insight in product development
• The power of value-based pricing in the FMCG sector
• The evolution of brand building in the digital age

Customer Insight is Paramount

According to Manish, customer insight forms the backbone for any product development in the FMCG industry. The company regularly conducts groups and surveys to connect with customers before launching any new product. Chowdhary shares examples of how customer insights led to the development of their best-selling products. For instance, they capitalized on the trend of consumers using apple cider vinegar for skincare and developed a whole range of products around it. Their Aloe Vera gel was created to provide a cleaner and more natural alternative to the existing products in the market - a change heralded by their customers.

Pricing: Striking the Right Balance

India is known to have a price-sensitive market. Indeed, the country has the cheapest Coca-Cola in the world. But, as Manish points out, Indians are moving from being price sensitive to being value sensitive. They are willing to pay premium prices for products that offer more value. Even a small price difference of INR 10-20 can significantly impact the sales velocity of the product. This forces companies like WOW to strategize their pricing carefully, offering value while remaining competitive.

Evolution of Brand Building

The digital age has dramatically changed brand-building practices. Today, due to an abundance of options, Indian customers have become flirtatious, willing to try various brands before sticking to one. But Manish believes that building a strong brand with an emotional connect can still engender loyalty.

Admittedly, building a brand requires time, patience, and capital. Today, companies need to invest in brand building more than ever given the rising marketing costs. However, if balanced well, online and offline distribution can take the brand miles.

And, regardless of how technology or the market evolves, Manish holds firm to one principle: honesty. He believes that this simple value can transcend any shift in the marketplace or consumer behavior and ensure a solid foundation for any brand.

Framing the Future

India's consumer market is maturing at an unprecedented pace. Consumers are becoming more discerning, weighing the pros and cons before purchasing, and seeking brands that align with their values and offer more for their money. Businesses that can truly understand their customers will be the ones that ultimately succeed in this evolving landscape.