With the rapid growth seen in quick commerce channel, FMCG major P&G is investing in developing a deep understanding of the “unique customer behaviour” on the channel to build curated brand experiences while adapting its supply chain model to support this unique business structure, said P&G India CEO Kumar Venkatasubramanian.

Speaking at a FICCI event on Monday, he also pointed that this is the era of India emerging as a destination of “most evolved supply chain” capabilities enabling companies to design more products to cater to unique needs of Indian consumers. He also stressed that the FMCG sector, as a key stimulator of the consumption-led economy “plays a pivotal role in driving double-digit growth and realising the vision of a Viksit Bharat.”

Addressing the inaugural session of FICCI Massmerize 2024, he said evolving consumer aspirations and advanced infrastructure is fuelling preference for convenience especially in metros and tier-1 cities. “This is evident in the way the e-commerce and quick commerce markets have grown. Enabled by strategic customer partnership that celebrates the best of data and analytics, we are able to grow quick commerce at 2X,” he added.

Disposable incomes

Venkatasubramanian added that access to the internet has democratised information and is leading to rapidly evolving consumer aspirations. This is also fuelling the premiumisation trend in the country. “ Increasing disposable incomes, coupled with greater aspirations fueled by access to information, are changing the dynamics of India’s consumption led economy. With consumers being more value-conscious than outlay conscious, they are willing to pay for more evolved needs and make informed choices of superior propositions that fulfil their needs,” he added.

Higher capital expenditure and institutional reforms have led to advancement of physical and digital infrastructure in the country, he said. “India has been a top considered destination for investments for many companies. Unsurprising, because with aspirations as well as infrastructure, we are best placed to design even more products in India, to serve the Indian consumers,” the P&G India chief stated.

Talking about building an evolved supply chain in India, he said, “At P&G, we have been able to achieve 60 per cent fewer touchpoints than a few years ago by optimising our supply chain, leveraging seamless data, analytics, and automation. We have also moved to an artificial intelligence and machine learning-oriented ordering system for our distributors, which is helping us better predict distributor shipments and replenishment.”

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