HUL’s rural moat is fast shrinking

This explains the rural market push of most FMCG players. Dabur claims to have reached 107,000 villages directly (in January 2025) up from 100,000 villages in March 2023. Marico has implemented Project SETU to increase its rural presence. “Under SETU, we will focus on rural outlet expansion at a pan-India level, while deploying strong control frame... See more

Contrast this with HUL, which says it reaches 75% of its customers through the old-fashioned general trade or kirana store route. HUL’s efforts are focused on its B2B app Shikhar in rural markets. Retailers can place orders 24x7 on the Shikhar app without waiting for a HUL salesperson to visit, ensuring faster replenishment and better inventory man... See more

The FMCG consultant mentioned earlier notes that once these newer brands identify what works among customers—ingredients, packaging, etc.—they try to double down on that strength. “These brands have a clear value that's getting delivered with very clear articulation of the benefits. Therefore, to that extent, the brand can be extended into many dif... See more