In the next decade, India will climb seven spots up to clinch 5th position in the world’s largest consumer durables market. By 2020, the market in India is expected to reach a whopping US$ 20.6 billion. Among many reasons that have accelerated this demand growth, the key causes are increasing disposable incomes and easy access to credit. Increasing electrification of rural areas and wide usability of online sales are also aiding the demand. The following trends are expected to add to the increase in sales of consumer durables.
Expansion in new segments
With major firms like Micromax, Hindustan Unilever and even Voltas announcing their expansion plans to enter the consumer durables industry, buyers can be assured to see many new products in the market. While Micromax has already announced it would invest $89.25 million to reinvent itself as a consumer electronic company, Hindustan Unilever is not too far behind. Targeting the millennials, it will bring a whole new range of skincare products to India this year.
Increased affordability of products
Aggressive price point, year-round discounts on e-commerce, advanced technology becoming cheap and reduced tax rates after GST- price reductions across various consumer durable product segments have been on an all-time high. With Make in India initiative also gaining momentum, domestic and Chinese manufacturers are heavily investing in India. Manufacturing of products is expected to become cheap, which is further expected to reduce the prices of the products.
Growth in luxury market
Increase in double-income families and increase in spending capacity has ensured that more luxury brands enter the Indian market. Not only are these brands increasing their presence in malls and high street, they are also bringing their products to e-commerce marketplace. The exclusive brand websites are another attraction to lure more customers.
Occasion-based marketing strategies
From partnering with e-retailers to offering massive discounts during festivals and occasions like anniversaries and New Year, brands have tapped all sources to reach the consumers. Strategic partnerships with foreign brands and increasing global presence is also said to add to volume of sales this year.
Focus on environment-friendly products
From launching energy-efficient products to reducing e-waste and promoting recycling, companies are leaving no stone unturned to ensure that their products promote eco-friendly initiatives. With different state governments also offering perks for eco-friendly products and the increase in consumer awareness will only add to more brands launching environment-friendly products.
In 2017, The Organic World (TOW), sprouted as the green heart of Nimida Group in Bengaluru, sowing the seeds of sustainability to cultivate positive change in our way of life. Founded by Gaurav Manchanda, Director, The Organic World, this unique brand strives to offer a holistic range of organic and natural products. From pesticide-free fruits and vegetables to chemical-free homecare products, TOW provides consumers with over 3000 choices to embrace a healthier, cleaner, and more sustainable lifestyle.
Gaurav, during his return to India from the United States in 2016, identified a gap in the market for healthy and organic food options. Motivated by a personal quest for such products and a desire to offer the same to a wider audience, The Organic World was born in 2017. Starting with the launch of its first store in JP Nagar, Bengaluru, TOW quickly expanded. Today it has 15 stores across Bengaluru, and is exploring the franchise model and the plan is to steadily expand TOW’s footprint across South India.
“Our journey is only getting started. We plan to expand up to 100 stores over the next 18 months, and exploring cities like Chennai, Pune, and more,” he says.
TOW positions itself as a multi-brand retailer, hosting products that are not only organic but also differentiated, providing better value to customers as they journey towards a healthier lifestyle. The stores boasts a comprehensive product range, including fruits, vegetables, dairy, staples, personal care items, and home care products. The presentation of these stores is world-class, ensuring a unique and engaging shopping experience.
Gaurav sheds light on TOW's commitment to responsible retailing, focusing on three core pillars: authenticity, accessibility, and affordability. The company enforces a rigorous vetting process for products, maintaining transparency by publicly listing 25 blacklisted ingredients and chemicals not allowed on their shelves. This disruptive approach challenges the industry to prioritize healthier and sustainable products. TOW has created a strict ‘Not In Our Aisle’ list – a list of chemicals and harmful ingredients that do not find a spot on its store shelves, despite their industry popularity. This includes ingredients like high fructose corn syrup, a sweetener, found in soda, juice, candy, breakfast cereals and packaged snacks; artificial flavorings/colors found in most packaged foods; Tertiary Butylhydroquinine (TBHQ), an antioxidant found in biscuits, microwave popcorn, butter substitutes and chicken nuggets; parabens, sulfates and phthalates found in personal and beauty care products; and a range of acids and toxins found in home cleaning essentials, to name some.
“When you step into our store, it's an interesting and world-class experience. We strive to be a full basket retailer, so you can complete your shopping journey within our stores. Now we have about 3000 SKUs on our shelves, and we continue to introduce interesting categories and products,” explains Gaurav.
The brand’s commitment to sustainability extends beyond its product offerings. It has introduced a zero-waste section in select stores, encouraging customers to bring their own containers for grains and nuts. The company is conscious of consumer preferences, with a dedicated vegan category accounting for a significant portion of sales. TOW's initiatives have not only resonated with environmentally conscious consumers but also positively impacted its revenue.
The Organic World has embraced a tech-driven approach to bridge the online and offline shopping experience seamlessly. Initially partnering with tech enablers, TOW later developed its in-house tech stack, comprising apps, websites, and delivery mechanisms. This move provides the company with more control over data, enabling better insights into consumer behavior.
Acknowledging the challenges in the grocery and organic sector, Gaurav emphasizes the importance of trust in the brand and scale to stay competitive. The company strives to deliver within a two to four-hour time slot, and in a bid to make its last-mile delivery sustainable, TOW is exploring the use of electric vehicles.
In a market flooded with products labeled as organic, The Organic World sets itself apart through a combination of the 3As. The brand's strong category play, especially in emerging trends like veganism, further distinguishes it from competitors. The company's commitment to scale, transparent pricing, and a variety of unique products solidifies its position as a leading player in the organic and healthy foods sector.
“We work closely with farmers and a network of farmers under the brand Happy Harvest Farms. They are certified and organic. Additionally, we do our own checks internally, and based on these checks we believe that we are able to provide an authentic experience to the discerning consumer,” Gaurav asserts.
He is optimistic about the future, fueled by the growing awareness of health-conscious consumers. With plans to expand its store network and franchise model, TOW aims to be a dominant player in the Indian organic market. The brand envisions not only leading in the organic sector but also influencing responsible retailing practices across the broader retail industry.
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