In FMCG, Old is Gold…until it’s 25% more expensive

Hindustan Unilever has long been the monarch of India’s mandi-to-metro FMCG arena. If it foamed, freshened, or fragranced, chances are HUL made it. But lately, its once-loyal rural fanbase has been flirting with newer, thriftier players. What’s going wrong? Probably the rise of regional rivals, lower-priced alternatives, and evolving consumer preferences, all giving the FMCG giant a reality check.

Regional Players Grow Through Consistency and Cost

Pitambari, the brand your grandmother used to shine the puja silver, is now polishing off HUL’s numbers in dishwash bars, handwash, and floor cleaners. Priced nearly 25% below the usual suspects like Vim, it’s quietly eating shelf space in semi-urban and rural towns. Ghadi detergent, meanwhile, is wiping the floor with Wheel parts of north India. With nearly 20% market share nationally and aggressive pricing in states like UP and Bihar, Ghadi has shown stronger brand recall than Wheel; that too, with zero celebrity endorsements.

Reach Isn’t Rare Anymore

HUL’s ability to place a product in every pin code was once its biggest advantage. For years, it could place a soap bar on a Himalayan hilltop or a shampoo sachet in a desert hamlet with the same ease as it did in Delhi or Mumbai. But in the digital age, the B2B platforms like Udaan, Jumbotail, and ShopKirana have opened the gates for regional players to reach retailers in record time, without the need for sprawling logistics. What was once a huge barrier to entry is now more accessible, thanks to tech-enabled logistics and retail digitisation. Availability is no longer the differentiator it once was.

The Market’s Growing. So Are Its Priorities.

Growth in India’s FMCG sector remains steady. The market is expected to cross ₹9 lakh crore by 2030, expanding at an annual rate of 10 to 12 percent. Within this, household cleaning products are projected to grow at nearly 15 percent each year, reflecting increasing awareness and broader category penetration.

What’s changing, however, is how that growth is being distributed. Regional and direct-to-consumer (D2C) brands are capturing more of it, especially in categories like home care, personal care, and packaged foods. These players tend to be quicker to adapt, more price-sensitive, and better attuned to local preferences.

Familiar Isn’t Always First Choice

Rural consumers today are more informed and deliberate in their choices. Exposure to a wider range of brands, formats, and prices has changed decision-making from habit to value consideration. This change doesn’t mean a loss of brand trust, but it does indicate that brand equity alone is no longer enough. Formats, affordability, and relevance now carry equal weight. According to a NielsenIQ study, over 60% of rural consumers in 2024 tried at least one new brand in categories like home care and personal hygiene, a notable rise from 43% in 2022.

For established companies like HUL, this points to the need for more adaptive formats, regional customisation, and tighter feedback loops across product and pricing decisions.

Conclusion: Lead Where It Counts, Adjust Where It Matters

Sure, HUL remains a strong player with clear advantages in scale, brand strength, and distribution. However, continued leadership will depend on how effectively it aligns with ever evolving consumer expectations. The rural market is diversifying and winning in this environment will rely less on past position and more on timely, region-specific responses that match the pace of change on the ground. 

In a nutshell, staying present is no longer enough; staying preferred requires sharper timing, local focus, and a willingness to evolve with the consumer, not ahead of them.