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Local businesses have much greater awareness of the local market and are better able to tailor their products and services to the local market. Because they’re smaller, they’re more agile, adaptable and responsive. They can get insights into their customers from local suppliers and tap into a variety of local networks.
In today’s world, Local brands can compete with global brands. Indian consumers have changed not only how they shop but also what they buy. They are more sophisticated and well informed and choices are defined not just by the name of the brand, but also on the proposition or benefit that the brand promises, the value it delivers and the efficacy of experience or outcome.
Local brands have a big advantage of deep understanding of the cultural context. Several personal care categories have also successfully leveraged cultural knowledge. Local brands have successfully leveraged the global trend in favor of herbal naturals. Categories as diverse as bathing soaps, shampoos, food and beverage, skin care and apparel are all riding the wave.
The Indian consumer continues to remain fiercely ‘value for money’ conscious, but they are increasingly trading up on the price pyramid. The Local brands win big by going low on price. The truth is that they are better able to understand the value proposition.