Navigating FMCG Innovation and Resilience: Insights from ITC's Somnath Chatterjee

1. ITC has been recognized as one of the most prominent players in the FMCG sector. How does such recognition impact ITC’s approach to driving market innovation and consumer trends? Additionally, how do you leverage this leadership position to set industry standards and influence the direction of the FMCG market in India and globally?

Recognition as a prominent player in the FMCG sector inspires ITC to lead in market innovation. This recognition prompts ITC to invest in research and development, attracting top talent to drive creative solutions that align with emerging consumer trends. Leveraging its leadership position, ITC can set industry standards by introducing cutting-edge products, sustainable practices, and engaging in collaborations and partnerships to influence the direction of the FMCG market both in India and on a global scale.

2. Consumer focus on health and wellness leads to a greater demand for FMCG products with more nutritional benefits and healthier alternatives. In your view, how should FMCG companies adapt their product portfolios and marketing strategies to align with this shift towards health-conscious consumer choices?

FMCG companies should adapt by reformulating existing products to enhance nutritional value and introducing new, healthier alternatives. Marketing strategies should emphasize transparency about ingredients, highlight health benefits, and leverage digital platforms for targeted communication. Collaborating with health influencers, emphasizing sustainability, and ensuring clear product labelling can build trust with health-conscious consumers and align product portfolios with evolving preferences.

A recent example of this would be that inspired by the Government of India's focus on promoting nutritionally rich millets and also in line with ITC's Foods Business' aspiration to 'Help India Eat Better,' ITC launched 'ITC Mission Millets' - an initiative to develop an innovative 'good-for-you' range of millet-based products for new-age consumers that caters to every meal occasion, age group and formats which are being progressively introduced in the market.

3. The recent global disruptions have highlighted the importance of resilient supply chains. What are the key challenges FMCG companies face in ensuring supply chain resilience in today's complex market environment, and what innovative approaches can be adopted to overcome these challenges?

FMCG companies encounter challenges like supply chain disruptions, demand volatility, and geopolitical uncertainties. To enhance resilience, integrating digital technologies for real-time visibility into the supply chain, implementing predictive analytics for demand forecasting, and adopting flexible sourcing strategies can mitigate risks. Embracing a circular economy model, fostering collaboration with suppliers for contingency planning, and leveraging data-driven insights for agile decision-making are innovative approaches to strengthen supply chain resilience amid the complexities of the modern market environment.