Suresh Narayanan, the Managing Director of Nestlé India, has declared a transformative shift in the company's philosophy, stating, "We no longer believe in products but in experiences." In an exclusive interview with CNBC-TV18 at The Growth Summit in Delhi on Wednesday, Narayanan outlined the four key trends that are set to reshape the future of companies like Nestlé, particularly in the post-COVID era. The event was presented by YES BANK and CNBC-TV18, with Managing Editor Shereen Bhan moderating the discussion.
First on the list is the escalating premium on quality, with consumers now demanding excellence even in budget-friendly products. "Kaam chalao" is no longer acceptable, and quality has become a premium that will undoubtedly benefit organisations committed to putting it at the forefront of their operations.
The second trend highlighted by Narayanan is the merging of nutrition and wellness, emphasising that consumers now seek products not only to satiate hunger but also to promote overall well-being. This shift presents a clear opportunity for Nestlé to cater to the growing demand for nutritious and health-conscious options.
A significant revelation is the third trend – the rise of premiumisation. Narayanan emphasised that brands are no longer mere products; they are experiences. "There is a Maggi experience, a Nescafe experience, a KitKat experience," he stated, underscoring the importance of brands transcending traditional product roles and becoming integral parts of consumers' lifestyles.
The fourth trend is the grand unification of aspiration with availability, particularly in small-town India or "rurban" areas. Thanks to the widespread availability of free data, residents in these regions now have access to the same information and aspirations as their urban counterparts. This has led to a surge in demand for premium products, with consumers in remote areas aspiring to enjoy the same brands as their urban counterparts.
Narayanan also acknowledged the role of technology in facilitating these trends, citing the rapid improvements in infrastructure across India. Distributors now operate on a quick commerce model, delivering products to even the most remote locations within half an hour. This technological leap, combined with a surge in aspiration and improved accessibility, has given Nestlé the confidence to navigate the changing landscape successfully.
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