New-Age Brands Challenge Legacy Rivals, Redefining Market Dynamic The Bridge Chronicle
Business

New-Age Brands Challenge Legacy Rivals, Redefining Market Dynamics

According to the report released by the Bain & Company and DSG Consumer Partners, these new brands have generated $7.5 billion in FY25—a 3.75 times increase compared with FY20.

TBC Desk

India's new age consumer brands are growing more than three times faster than the legacy brands in terms of the market they serve, ranging from snacks and skincare to jewellery and wearables.

The increase in the internet penetration, fulled by the digital commerce, quick commerce platforms and rapid product innovation have carved out the positions in niche segments that larger rivals often overlook.

According to the report released by the Bain & Company and DSG Consumer Partners, these new brands have generated $7.5 billion in FY25—a 3.75 times increase compared with FY20.

India’s insurgent consumer brands continue to outpace the market, growing 1.5 to 5 times their respective categories and are building new segments at breakneck speed.

These editions outlined the “Outer Game,” describing how insurgent brands outperform rivals by focusing on unmet consumer needs, leveraging innovation, pioneering new methods of brand building, improving shoppability across channels, and reinventing their business models.

Although insurgent groups currently account for only about 2% across most categories, they are expanding at a rate above the overall market.

In particular, insurgent brands in jewellery, beauty, and personal care have captured a significant share compared with other segments, closely followed by those in home and kitchen products as well as wearables and devices.

The rise of insurgent brands is largely fuelled by robust innovation and their ability to meet both emerging and latent consumer needs.

However, the report notes that scaling these insurgent brands remains a significant challenge.

It states that fewer than 1% of consumer companies established since 2008 have surpassed Rs 100 crore in revenue, and of those that have, only 22% have gone on to exceed the Rs 500 crore mark.

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