The Sweet Deal in India

I read an interview by Perfetti’s MD in Business Line recently where he was talking about how difficult it was for them to convert the 50p price point and raise it to Re 1 and another article here on how the main issue with Indian market is price points (MRP), that the costlier, “stylized” chocolates are better sold in “malls” and that the Indian chocolate market is largely limited to children and has not been able to convert the adults.

I beg to differ with the concept that “price” is  an issue with sweets. The people (both adults and children) who crave for sweets don’t care about price, it falls under “crave” items. The problem with Indian scenario is that overall there is a dearth of options, lack of quality and absence of richness in the confectionery and chocolates category. In fact, there are no lollipops worth its salt (sweet) that an adult would buy (even if they craved for it), chewing gums are ok but now there are too many clones in the market (especially with the sugar-free version) and can I please get an eclair that does not get stuck in my teeth (I mean, I used to like eclairs before these cheap versions started flooding the market)?

Chocolates is another disaster story, for the price I pay mostly there isn’t even a bite-full to eat (things have changed slightly with Cadbury Silk in the mix and some imported German chocolates). I can do far better with most of the traditional Indian sweets in all their variety and richness right around the corner. Of course, not to mention that dark chocolates are more chocolate than dark (cocoa) and the difference in taste between the “Indian” and “Foreign” versions of “Kit-Kat”, “Ferrero Rocher” doesn’t make them taste any better (in fact, they are worse).

All of these “sweet” guys (Perfetti, Nestle, Nutrine, Parle) who are talking about price, placement and segment issues in India, my question to you is, what have you done to understand India and put together an honest, good quality product mix for us? We might be a disparate market, we might stand divided by caste, creed and religion but we stand united by our sweet tooth and reject products that lack in quality or range thrown at us and oh, yeah! no amount of advertising is going to make up for the fact that the products don’t stand up for themselves.

PS: I should give a special mention to Cadbury as they have always attempted to work towards this goal. They are having to run three separate ad campaigns – one each for dairy milk silk, temptations and the regular dairy milk. I can see what an uphill task it is for them in Indian market to stand up for quality when everyone else is gunning for costs!

What do you think? Any special chocolate stories to share?

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