HUL, Nestle are saying growth is not there, middle class is shrinking etc etc. Its not like that, see the brands around you. Cottage grown, PE funded brands are coming up in all sectors. See the snacking and FMCG market, earlier there were only HUL, Nestle, Dabur now we have tons of companies making different products. Eg: see Sharktank, the numbers of companies that are coming up in all those categories.
See cosmetics, earlier there were Lakme, chamber, revnol 2-3 more; now we have 40+ brands selling cosmetics;
Most of these brands and new stuff will die out once the liquidity dries up. They won’t be able to survive the downturn / compete with the pricing of big players.
MNC backed Nestle, P&G, HUL are not going to sleep while these small players eat up their volumes.
We can’t take the number of the legacy brands n say growth isnt there.
Yes, but enough growth is not there, else volumes should have increased even for these legacy brands.
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