on gro#ing its core brands 2 reaching out to ne# geograhies – le%eraging technology
PESTEL &nalysis POLITICAL & ECONOMIC FACTOR:
Goods and Ser%ice 3a) #hich #ill relace the multile indirect taes le%ied on FMCG sector #ith a uni$orm) simli5ed and single2int taation system) is liely to be imlemented soon. 3he rate on goods is roosed to be 6*7 and on ser%ices 17
&s er Food Security bill) Kg o$ $ood grains er erson er month #ill be ro%ided at subsidi9ed rices $rom State Go%ernments under the targeted ublic distribution system. 3he agriculture #ould recei%e a boost and this could lead to more in%estment in imro%ing agriculture roducti%ity maing it cometiti%e
FD! in retail : Decision to allo# 17 in multi brand retail and 1**7 in single brand retail augers #ell $or the outloo $or the FMCG sector. 3he mo%e is eected to bolster emloyment) and suly chains) aart $rom ro%iding high %isibility $or FMCG brands in organi9ed retail marets) bolstering consumer sending) and encouraging more roduct launches
'elaation o$ license rules: !ndustrial licenses are not re;uired $or almost all $ood and agro2rocessing industries) barring certain items such as beer) otable alcohol and #ines) cane sugar) and hydrogenated animal
PESTEL &nalysis
ECONOMIC FACTORS :
!ncreasing consumerism Fa%orable demograhics and rising income le%els 3otal consumtion eenditure set to increase 2 eected to reach nearly /SD+** billion by 6*6* $rom /SD 1+68 billion in 6*16 ** million by 6*+* !ndia?s middle income oulation estimated to reach 6( million by 6*1 $rom 1* million in 6*11 'ural FMCG maret si9e to gro# $rom /SD 16 billion in 6*11 to /SD 1** billion by 6*6 dri%en by increase in er caita disosable incomes Desite higher interest rates and ele%ated !n@ation) the !ndian FMCG gre# at a healthy 126*7 last year dri%en by robust rural and urban demand
PESTEL &nalysis
SOCIO-CULTURAL FACTORS : Aducation
le%els : Aducation is one o$ the most imortant $actor #hich in@uence the buying o#er o$ consumer) #hile selecting a articular goods a consumer should no# all its $eatures so it can dierentiate them #ith another roducts. a#
aect social beha%iour : Dierent la#s are made by the go%ernment to sa$e guard the rights o$ consumers. For eamle2 Consumer rotection act) this la# indicates that a consumer can 5le a case against a seller i$ he 5nds that he is cheated.
PESTEL &nalysis
TECHNOLOGICAL FACTORS : Disco%eries
- inno%ation
&d%ancement
in technology
Measures
3aen by Dabur : Dabur in%ested 's. 1 crores in hard#are and so$t#are $or its go2do#ns and branches to be directly lined #ith its head;uarters through direct emails
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