Introduction to Nikhil Sharma and Perfetti Van Melle

Nikhil Sharma, the newly appointed Managing Director of Perfetti Van Melle India, brings a wealth of experience to his role. With a career spanning over two decades at Perfetti, Sharma joined the company in 1999 as a management trainee and has since held various positions across sales, marketing, and general management, including leading international operations in the Philippines and Vietnam[1][2]. His journey is marked by significant milestones, including a stint as Managing Director of Perfetti Van Melle Vietnam before taking over the reins in India[2].

Market Challenges and Premiumization Strategy

Perfetti Van Melle India is navigating challenging market conditions, with sales of candies, toffees, and chewing gums having stagnated over the past couple of years following a record year in 2022. Nikhil Sharma emphasizes the company's focus on premiumization to revitalize growth. In an interview, Sharma highlighted the company's comprehensive demand-space study in 2018, which revealed opportunities for premium offerings among Indian consumers. Since then, Perfetti Van Melle has made significant strides in premiumizing its portfolio, increasing non-`1 price points from 5% to 30% of its offerings[5].

Key Elements of Premiumization

• Product Innovation: Sharma underscored the importance of product innovation, ensuring that premium offerings deliver an experience that justifies higher price points.
• Accessibility: Ensuring that premium products reach consumers through a robust distribution network covering over 12 lakh stores across India.
• Innovation in Pricing and Formats: Experimenting with new formats and pricing structures to appeal to a broader consumer base.

Addressing Raw Material Price Increases and Consumer Preferences

Sharma discussed how Perfetti Van Melle India is managing rising raw material costs while maintaining popular price points. This involves:

• Efficiency Enhancements: Improving operational productivity to absorb cost fluctuations.
• Strategic Partnerships: Working closely with distributors and retailers to optimize supply chain efficiency.

Consumer Trends and Product Evolution

Sharma noted the growing demand for "healthy" products, such as sugar-free and fortified snacks. Perfetti has responded by introducing sugar-free options under brands like Mentos, Happydent, and Center Fresh. Recent launches include fruit juice-based jellies, catering to consumers seeking functional benefits without compromising taste[5].

Brand Trust and Authenticity

At the Pitch Brand Talk 2024, Nikhil Sharma emphasized the importance of building brand trust through deep product knowledge, consistency, and strong trade relations. He highlighted:

• Product Intimacy: Understanding not just the consumer-facing aspects of a product, but also its origins and manufacturing processes.
• Authentic Marketing: Using this intimate knowledge to communicate effectively with consumers, fostering trust that translates into loyalty[3][4].

Importance of Consistency and Long-Term Strategy

Sharma cautioned against pivoting too quickly from marketing strategies that do not yield immediate results, advocating for consistency in messaging to maintain brand image and consumer trust[3].

Conclusion

As Nikhil Sharma leads Perfetti Van Melle India into a new phase, the company is poised to continue its legacy as a market leader by focusing on innovation, premiumization, and brand authenticity. With a deep understanding of consumer trends and a strategic approach to market challenges, Perfetti Van Melle is well-positioned to navigate the complex FMCG landscape in India.