| From the Editor's Desk || |
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Contributing Editor, TradeBriefs: Navina Anand
Mirror, Mirror, on the wall
A decade ago, if anybody in India was asked to name a 'fairness' cream, they would have promptly replied 'Fair and Lovely'. Today, the number of fairness creams in the market has exploded. A study shows that 60% of beauty products sold today are skin lightening products. Our nation's obsession with fairness is fully playing out today in the shopping bazaars. We have moved from just having fairness creams to fairness face washes to fairness soaps and now to fairness deodorants for under arm fairness!!! .
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| At a Glance || |
NewsTrends & Insight
| News || |
Hindustan Unilever Ltd (HUL) is believed to have received over a dozen bids for its seven-storey building at Worli Seaface. The building, Guilta, constructed in 1986, is expected to fetch around Rs 300 crore, market sources say. The property's land area, about 40,500 sq ft, is a little under an acre. Its built-up area is 53,595 sq ft. HUL refused to comment on the expected price or the number of bids. "The deal will take several months to fructify as each bid will have to be carefully evaluated," said a source. Though the current lease permits the land to be used only for residential purposes, industry sources said several bidders have asked for the property to be redeveloped into a hotel.
| Trends || |
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Soaps, detergents, shampoo, hair oil, biscuit and chocolate majors have benefitted big time from their policy of targeting the bottom of the pyramid (BOP), made famous by the late management guru, C K Prahalad. Most FMCG companies today boast of 20-30 percent of their revenues coming from rural markets. But the going hasn't been that easy for beverage majors. For most part, these firms have struggled to make a profitable product at Rs 5. Coke's famous attempt at targeting the Rs 5 price point remained an experiment as the company struggled to manage both packaging and transportation costs at that price point. Coke as well as rival Pepsi, which also launched a 200-ml bottle at Rs 5, subsequently raised the price of the product by Rs 2, thereby vacating the slot altogether.
| Insight || |
|India Agribusiness Sector: A Review
Food inflation is once again hogging newspaper headlines as it has so many times in the recent past. While supply disruption in onions is partly to blame for the recent surge, the fact that this bout of food inflation is neither driven by foodgrains, nor by global soft-commodity prices reiterates the point that food inflation in India is sticky and is the result of both demand and structural supply side factors. Prices of many high-value food items such as fruits, vegetables, milk, egg, meat, fish and spices (weight of 10% in WPI) have been on a steady uptrend over the last three years increasing at anywhere between 12-25% on an annualised basis. Cost and availability of rural labour has become a major concern across the country - as a result, rural wages have been increasing sharply adding to food demand as well as raising cost of production. Sharply appreciating rural land prices are also having a similar effect. Supply, on the other hand, has failed to keep pace with the accelerating demand particularly for high-value food items, with yields largely stagnant and issues in distribution leading to poor market access and large post-harvest losses.
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