From last few years, we are founding that there are a lot of International MNC FMCG companies entering in India with their products in different segments. These companies includes the top companies also (ex. Lore'l, Kraft, Tura, Cape Gemini etc.). In one hand these companies are totally diversifying the Indian market with different products , at other side, these are creating a tough competition for our national as well as prior ones. There was a time when HUL become market leader in all the segment's with having more then 50% share in every segment, but now it is trebling in it's core business also. This is not only happening with HUL, but it is the same story with other brands.
In the year 2001-02, there was a US based company, named Amwey, entered in India with it's chain of cosmetic products and become a good success story in India. This company has not been much successes in rural market due to it's high price. But it was just an entry, within couple of years, there was a lot of MNC companies entered in Indian market even they are also providing the products in affordable prices. We have an example of Lore'l, It enters with It's global leader brand Garnier, at the time it was introduced in very limited segments (ex.Hair color) and preferred by only middle and higher class people. But at the present time, there are a line of products of Lore'l are available in the market. These products are also about the same price range as it's competitive products are available. Like that, a lot of companies are giving more competition for the national brands.
Now a days nobody like to use the products of our domestic companies. It is a problematic issue on which the govt. has to look upon and take vital steps. Otherwise our domestic companies will go down as well as no any new entrepreneur will be bother to start new venture in the FMCG sector. The govt. should limited the entry of MNC's in India.
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