Sunday, December 19, 2004

Sometimes being the lowest cost producer doesn't help !

More than a month since I posted anything. Came across this interesting article from the Economic Times which outlines the woes of Indian FMCG companies, which seem to be having a problem selling their exports at international prices (higher than domestic prices) in markets other than their home countries because of under cutting my the merchant traders. Infact they seem to be facing the heat from their own brands in the international market

Well not unusual its an arbitrage opportunity and it will be explioted no doubt. Companies like Marico seem to have learnt their lessons and are offering market specific packaging a with local language covers. Every problem.. is an opportunity for an innovative mind afterall.