FoodWorld: Pioneering Organized Food Retailing in India

The jam was sold under the brand name 'FoodWorld' and was priced much lower than the other brands. Within a month of their launch, FoodWorld jams accounted for 17% of FW's sales in that category. This development marked one of the first major instances of the conflict between 'private store brands' and 'FMCG company brands' in India. While the phenomenon was rather common in countries such as the US and the UK, FW became the first retailing chain to challenge the might of leading FMCG companies in the country. Beginning with jam, honey, phenyl and herbal sanitizers, FW soon extended its branding initiatives to other products as well. These products could be placed under three main categories - commodities, processed food items, and non-food items.

Considering the impact of this move on the confidence of other manufacturers, analysts felt that leading manufacturers might suspect that FW was promoting its own brands at the cost of their brands. However, FW officials stressed that all the products it launched were in segments where there were gaps in its product portfolio, either in terms of price, supply or quality. These developments highlighted the fact that in the early 21st century, organized food retailing in India was catching up with other Western countries. The 'posh' shopping experience associated with FW outlets was far more appealing than the small, unappealing stores at which Indian households shopped for since decades. How FW became the first venture to successfully cover many parts of the country is essentially a story of good timing, business insight and strong strategic support from the promoters.