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22.7.2010 Over 90% of product launches fail in India

Over 90% of the new products launched in India in the recent past failed to make an impact among shoppers, indicating the challenges facing brand owners in the country.

According to estimates from AZ, the market research company, 1,500 offerings have been introduced in India in the last 18 months, equivalent to approximately three per day.

The agency reported that this activity peaked in the FMCG industry, with segments such as telecoms, apparel, automotive and consumer durables also receiving considerable interest.

However, only 5% of products rolled out during this period experienced any degree of longevity, with the remainder being withdrawn after they were unable to gain meaningful traction.

However Nestlé has achieved particular success in India through expanding its Maggi portfolio, which now houses everything from noodles to ketchup.

Hindustan Unilever also released Knorr Soupy Noodles at the end of March, and adopted a strategy using modern retail formats nationwide alongside traditional channels in the south of the country.

B.L. 22.7.2010