Big grocery retailers like Amazon and Big Basket are trying to cash on their own private label brands, as customers look for cheaper options due to the advent of economic crisis.
FMCG brands, which used to rely on the traditional modes of selling through their supply chain partners, should now find new trajectories to sell to the consumer. This statement comes as the brand’s usual partners struggle to create demand in the market amid the coronavirus crisis. According to Deepak Shahdadpuri, managing director of investment firm DSG Consumer Partners, food retailers should now follow a direct-to-consumer approach.
Big grocery retailers like Amazon and Big Basket are trying to cash on their own private label brands, as customers look for cheaper options due to the advent of economic crisis. Therefore, new, smaller retailers will have to pave way for themselves to reach out to the customers. “The likes of BigBasket are going full hog on private labels, across categories. This is the perfect time to push for private labels, because again the data tells you that people aren’t buying goods, primarily because of access, which has a very, very big part to play at this stage in the cycle,” said Shahdadpuri, one of the leading consumer-focused investors in the Indian startup ecosystem.
Alerted by this, yogurt brand Epigamia and cold-press juice maker Raw Pressery, under the DSG Consumer Partner’s portfolio, starting selling the products on their official websites.
“The big online retailers were not being able to service their clients. We don’t want to compete with the likes of Flipkart or Big-Basket, who also sell our products. But at this stage, they themselves have an issue fulfilling orders. No one’s getting upset. If you’re a brand, you must consider it,” Shahdadpuri said.