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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
Income inequalities have put the onus of consumption growth on a small group of buyers. But this growth is tapering, leaving companies competing for pieces of a stagnating pie, with serious costs.
“India is a fairly small market for us, with an addressable consumer universe of around 5-6 million as against China’s 35 million.” This was Erich Stamminger, president and chief executive, Adidas brand, Adidas AG, in 2006, 10 years into the global giant’s presence in India.
From then until 2020, India remained a fairly small market for Adidas, with revenue growth of 12% compounded annual growth rate, according to PrivateCircle, well below even India’s nominal GDP growth rate. Profitability was also nothing to write home about, with EBITDA—earnings before interest, taxes, depreciation and amortization—margins mostly averaging 7-8%.
Cut …
Colgate ties up with 100Days.co to scale Palmolive online. But the long overlooked brand may need more than a digital push.
The FMCG company has turned to Aasif Malbari for a reset, but a sluggish core, weak traction in new bets and tight promoter control remain hurdles.
Investors expect the FMCG major to get back on the growth track in the quarters ahead, but protecting margins at the same time could be tough.
