How digital-era consumer goods ventures are focusing on reaching consumers directly
FMCG has essentially three parts — product creation & manufacturing; distribution & marketing and managing the business. Several new companies try to control product creation but outsource production to contract manufacturers.
Synopsis
The business model is not just about reaching out to consumers directly, but about selling the product by owning pretty much nothing more than just product innovation and idea.
Last month, Delhi-based startup Habbit launched three products — ice creams, shakes and protein mixes. The outcome of almost 18 months of research, the products aren’t available in any store, but are sold to customers directly. Habbit doesn’t own any factory, neither does it run any large-scale distribution networks. It relies mostly on third-party providers. The asset-light FMCG venture is run by just 30 people. Bengaluru-based Teamonk Global