Swiss international food and drink company Nestle has introduced its version of Greek Yogurt; just few months after Drums food International launched its version of Greek Yogurt, Epigamia. “Nestle introduced GREKYO 4-5 months after Epigamia’s full-page advertisements came in leading newspapers. But when people searched for GREKYO on BigBasket and other websites, it wasn’t there. What showed up instead was Epigamia,” said Deepak Shahdadpuri, Managing Director at DSG Consumer Partners and an investor in Drums Food.
Startups Making their Mark in Domestic Startup Ecosystem
Consumer product startups from 4-5 years have been making their mark in a domestic startup ecosystem which has been already dominated by Flipkart and Ola. These young companies are starting to wear down the edges of giants, for example, Unilever and Marico with brilliant promoting and innovation that recent college grads will spend on. Startups such as RAW Pressery, Bira and Teabox have been the earliest adopters of this narrative, writing their own scripts and building India’s next wave of challenger brands.
Investors believe that Guerilla marketing is the only way for startups to beat the might of the giants. RAW Pressery, Veeba Foods, Bombay Shaving Companies are using social media influencers to initiate conversations around their brands and businesses.
There is no set rule to making a mark in this industry, say investors. “Product trials are the most powerful marketing a brand will ever have,” said Shahdadpuri of DSG Consumer Partners.
Unilever’s Acquisition of Dollar Shaving Company
With Unilever’s $1-billion acquisition of Dollar Shaving Company last year, its $140-million purchase of Sir Kensington’s in April, and Marico’s undisclosed investment in Beardo in March, the M&A script between consumer goods Goliaths and Davids has only begun.
Surge in Investments
The rising wave of consumer startups has triggered a surge in investments this year. While financial specialists, such as DSG Consumer Partners, Saama Capital, Sequoia Capital and Fireside Ventures are progressively taking a gander at this area in particular, a few others are hoping to take advantage of an open door that could give solid speculation exits.