In Short:
P&G is focusing on understanding unique customer behaviors in the quick commerce market to create tailored brand experiences and adapt its supply chain. CEO Kumar Venkatasubramanian emphasized India’s progress in supply chain capabilities, driven by rising incomes and evolving consumer demands. He highlighted improved infrastructure and the use of AI for better supply chain efficiency, aiming for sustained growth in India’s consumption-led economy.
Unpacking the Future of Quick Commerce with P&G
As the quick commerce landscape continues to flourish, **Procter & Gamble (P&G)** is rolling up its sleeves to delve into the intricate world of customer behavior. **Kumar Venkatasubramanian**, the CEO of **P&G India**, highlighted that the company is all about crafting tailored brand experiences while reshaping its supply chain specifically to cater to this dynamic business model.
A New Era for Supply Chains in India
At a recent **FICCI** event on Monday, Venkatasubramanian emphasized a significant shift happening in **India**—the emergence of the country as a hub for the “most evolved supply chain” capabilities. This evolution enables corporations to design innovative products tailored to the unique needs of Indian consumers. The **FMCG sector**, as he articulated, plays an essential role in stimulating a consumption-led economy, driving double-digit growth, and working towards the vision of a **Viksit Bharat** (an evolved India).
The Rise of Consumer Aspirations
During his speech at the **FICCI Massmerize 2024** inaugural session, Venkatasubramanian noted that the growing consumer aspirations, combined with sophisticated infrastructure, are pushing the demand for convenience, especially in metropolitan and tier-1 cities. He remarked, “This shift is starkly visible in the explosive growth of the e-commerce and quick commerce sectors. Our strategic partnerships leveraging data and analytics are propelling us to achieve a remarkable 2X growth in quick commerce,” he shared enthusiastically.
Driving Premiumization Through Access and Awareness
Venkatasubramanian pointed out that widespread internet access is leveling the playing field—democratizing information and rapidly evolving consumer aspirations. This trend is significantly contributing to the rising demand for premium products in the marketplace. “As disposable incomes rise and consumers become more informed, they are eager to invest in offerings that truly meet their sophisticated needs,” he remarked. “Today’s consumers are more focused on the value they receive rather than just the price tag,” he added.
Investment and Infrastructure: A Winning Combination
Highlighting the progress made in infrastructure, he mentioned that increased capital expenditure and institutional reforms have significantly bolstered both physical and digital frameworks in India. “It’s no wonder that India is a top choice for investments from numerous firms. With rising aspirations and robust infrastructure, we are perfectly positioned to innovate and design products that resonate with Indian consumers,” stated Venkatasubramanian.
Optimizing Supply Chains for Tomorrow
When it comes to building an advanced supply chain in the country, he noted, “At P&G, we have successfully reduced our touchpoints by 60 percent compared to a few years ago by optimizing our supply chain operations. By harnessing seamless data, analytics, and automation, we are laying the groundwork for future success.” He further explained that the company has transitioned to an artificial intelligence and machine learning-oriented ordering system for distributors, enhancing their ability to predict shipments and replenishments better.
