• Omicus Consulting LLC,
  • PO Box 3070,
  • Princeton, NJ 08543-3070, USA
  • info@omicus.com

Consumer Products-Emerging Markets

The stagnation of business in developed countries, and high growth in emerging markets is not only a fact but is likely to be a business defining trend over the next many years. Due to their diversified exposure to the emerging markets, this divergence in the growth rates is much more for CPG/FMCG industries. According to a recent OECD report1, the CPG industry will add 1.5 billion new consumers over the next decade, of which nearly 85% will be in Asia-Pacific. This divergence is therefore likely to be even higher for a considerable number of years. According to another report2, “creating a powerful emerging-market strategy has moved to the top of the growth agendas of many multinational companies, and for good reason: in 15 years’ time, 57 percent of the nearly one billion households with earnings greater than $20,000 a year will live in the developing world. Seven emerging economies – China, India, Brazil, Mexico, Russia, Turkey and Indonesia – are expected to contribute about 45 percent of global GDP growth in the coming decade.
These are significant projections which ring alarm bells in those multinational organizations – large or small- which realize that they currently do not have robust plans to tap into those growth opportunities. Even those multinational organizations which already have detailed plans for these markets, competitive pressures, and the unrealized opportunity for category growth, propels them to review and refine their plans frequently.

Trade Structure

The trade in the developed world is dominated by large retail chains like Wal-Mart, Carrefour, Tesco etc. who are usually served directly by the manufacturers. On the other hand, in the Emerging Markets a large percentage of business comes in through indirect Trade, in which the smaller and independent retailers are covered using service providers like Distributors, Wholesalers etc.
The Retail Stores in the Indirect Trade may be individually small but collectively they are huge. For many CPG companies they account for over 40% of the global business (for some even higher). For most mass-marketed CPG/FMCG companies, Indirect Trade tends to be bigger than Direct Trade in Asia, Latin America, Africa, the Middle East, and many countries in Central and Eastern Europe including Russia. Indirect Trade tends to be bigger than Direct Trade in all the BRIC countries – Brazil, Russia, India and China.
Thus Indirect Trade is a huge part of the trade structure and may well become even bigger. It is therefore essential for the CPG/FMCG manufacturers to have their act right for this important trade segment. For a brand aspiring to grab a high share of market, building a presence in the independent retailers is necessary.
Emerging Markets: Higher share of business transacted through Independent Small Retailers

Omicus Consulting and Emerging Markets

We set up Omicus Consulting to bridge the gap between what the larger consulting companies provide, and what we believe is the need in organizations for Indirect Trade. Organizations today need strategic expertise to address their pressing business needs, which are:

Develop a Global Strategy, with attendant principles, processes and tools for the Indirect Trade,

Drive distribution of individual products which are of strategic importance,

Drive off-take from the shelves,

Reduce the cost of distribution (while at the same time increase coverage),

Increase market share,

Reduce the huge disparity in pricing at the point of sale,

and some others.

We provide practical consulting, which means not only strategy but execution on the ground as well, working closely with the local teams.”……………………………….Anurag Kumar, President Omicus Consulting.

Consumer product companies benefit from our extensive on-site experience in the emerging markets of Asia, Africa, Latin America, the Middle East and Central Europe. Utilizing our global strategy development expertise, we client-customize our go-to-market strategy framework, and provide hands-on facilitation of strategy execution.
  • We work with clients whose objective is to enter or expand their business in emerging markets.
  • We also work with clients who have a strong presence in emerging markets but need to accelerate growth in specific countries or define/refine their global go-to-market strategy.
  • We also work with organizations whose processes in emerging markets are robust. Typically such organizations have a high commitment to self-development and work in the spirit of continuous improvement.
We believe in establishing long-term relationships with our clients by working effectively and cost-efficiently in their best interest.

Global Strategy, Planning and Execution

We bring extensive experience in global strategy and managing business operations. Thus we focus not only what should be done (strategy), but also how it should be done (plan), and work with client teams to get it done (execution). Our approach is disciplined, realistic and people-oriented. We work as partners with the client’s internal team to ensure they get the improved performance they need.
Our practical consulting solution to clients’ business issues is the result of knowledge and experience combined with strategic, analytical, and executional rigor. We focus on separating the symptoms from the cause, and address the cause directly.
Global Strategy, Planning and Execution
Seasoned Expertise in Indirect Trade

Seasoned Expertise in Indirect Trade

Our practical consulting covers both Indirect3 and Direct channels. The majority of sales in emerging markets are through Indirect channels. Consumer Product companies and their subsidiaries benefit from the outstanding Indirect Trade expertise of Omicus Consulting. We develop a global framework for Indirect Trade strategy and support it with processes and tools. We facilitate its execution worldwide utilizing our strong operational expertise.

Comfortable in Worldwide Markets

We feel at home in most parts of the world due to our extensive global business experience, knowledge and cultural competence. We also have the unique distinction of planning the implementation of strategy with the local country teams in most emerging markets. This has provided us with in-depth knowledge of the trade dynamics in these countries. This global experience, knowledge and cultural competence resides centrally within our organization.
Our strong global experience also enables us to effectively cross-pollinate practices from one part of the world to another keeping in consideration the local nuances. We address issues and develop and implement solutions globally as well as in specific regions/countries.
Comfortable in Worldwide Markets
  • 1 OECD 2010 working paper # 285. ‘The emerging middle class’
  • 2 McKinsey Quarterly, April 2011
  • 3 Indirect Channel: Flow of products through distributors, wholesalers etc.