Best Time to Build Brands
With India’s ever-increasing population, it goes without saying that we have to increase our productivity. Sustainable development in the dairy industry is the only way forward
India has been the world’s fastest- grow- ing major economy in the last two years, and the revolutionary growth is continuing. This is the best time for entrepreneurs to work on their dreams of building a brand and playing a part in the country’s growth story. There is every reason to strongly believe that the coming years will be the best ones. The economic research department of the State Bank of India has stated that India would become the third-largest economy in 2029.
Brokerage Morgan Stanley ex- pects robust domestic demand to keep the growth rate resilient, of course with the support of strong domestic fundamentals that re- duce the economy’s vulnerability to external headwinds. Their 2024 India Economic Outlook further states that macro stabil- ity is likely to remain within the comfort range.
The International Monetary Fund has forecast that India’s real Gross Domestic Product will increase more than 6% in both the years 2023 and 2024. Keeping the projections and data aside, I feel it is an exciting time for India and for brands, in particular.
Increasingly companies are giving wings to their global aspirations and are going all out to achieve it. Indian companies are now more of global brands and that is great news for stakeholders.
‘ Make in India for India’ is now becoming ‘ Make in India for the world’.
This will not only propel our country’s growth but will also posi- tion us better on global platforms. Companies are also focussing on offering niche services to the global audience. This is one of the reasons for our increasing export market.
potential in India’s dairy sector
Industries in all sectors must make use of ‘ advantage India’. As the fastest growing economy in the world, India is the largest producer of several agri commodities. It is the second-largest consumer market and has a highly skilled manpower pool. More importantly, proactive government policies and significant investments happening in world class ports, logistics and supply chain infrastructure are helping the industry immensely.
With great potential, India is among the largest and fast- est growing markets in the world. A huge bovine popula- tion has helped to position India in the top position in milk production globally. However, the full potential of the Indian milch herd still remains unattained.
As per the ‘Basic Animal Husbandry Statistics 2022’, the per capita availability of milk was 444 gm/day in 2021-
22, which increased by 17 gm/ day over the previous year.
Changing lifestyle pat- terns, increasing disposable incomes and increasing health consciousness are the key growth drivers for milk and high- value milk products in India.
To tap the surging demand, most dairy players have entered the processed dairy segment with the introduction of products like ghee, flavoured yoghurt, etc.
The allied sectors with immense growth potential include new technology in value- added dairy products’ processing, cold chain, innovation in packaging solutions, new product development for cattle feed, new veterinary care technol- ogy and cattle diagnostics services.
Dairy brands can also explore new product development in dairy products like cheese, smoothies, flavoured milk, custard, yoghurt and other ethnic Indian products.
The way forward
With our ever-increasing popula- tion, it goes without saying that we have to increase our productiv- ity. Sustainable development in the dairy industry is the only way forward.
Priority must be given for devel- oping livestock policy. Medicines and vaccine supply should be made available. Formal credit must be given for animal purchase. Informal loans for animal purchase or other dairy needs should be given. There has to be a fool- proof profitable system in place for dairy farmers in terms of marketing, processing and retailing.
Technology trends
Over the next few years, I expect phenomenal growth in traditional industries like manufacturing and agriculture. More and more start- ups are leveraging technology to turn their products and services into brands. The start- up ecosystem is directing India’s growth graph. The impressive ‘complacency to competitiveness’ path of such brands is garnering attention. Innovative products, innovative marketing, popular brands and technologically advanced systems are enough to craft a success story.
Younger brands can use exten- sive research, best of technology and innovation to stabilise their business. They can start with a focus on one specific region, ensuring that they offer high- quality products or services. They can then gradually expand. Scale of operations, finance, technology and marketing methods are the four im- portant aspects that they have to focus on.
Entrepreneurs should understand that brands are their biggest assets and that will take at least eight to nine years for the brands to stabilise. They must be patient during the waiting period.
The growth of the company has to happen organically at each of its stages. It is good to stick to the core business, instead of going ahead with the usual conglomerate di- versification strategy and get into unrelated businesses. Some of my tips for budding entrepreneurs are: be a change initiator and product differentiator, be thrifty and focussed on core businesses, reinvest profits from the business for its growth and never use it for accumulating personal assets. Creating economic moats to gain competitive advantage and mar- ket share is another tip that can be followed.
MORE AND MORE START-UPS ARE LEVERAGING TECHNOLOGY TO TURN THEIR PRODUCTS AND SERVICES INTO BRANDS