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Gen Z brands are breaching the last citadel of legacy consumer firms

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Gen Z brands are breaching the last citadel of legacy consumer firms

Gen Z brands are breaching the last citadel of legacy consumer firms

India's Gen Z and D2C brands are challenging FMCG giants like Hindustan Unilever, ITC and Marico by expanding into kirana stores. New-age brands captured 21.7% of India's kirana market in H1 FY27, up from 14.8% a year earlier. As digital-first brands breach traditional distribution networks, legacy FMCG companies face growing competition for retail shelf space and consumer loyalty nationwide.

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For decades, the biggest competitive advantage of India's FMCG giants was not necessarily their brands or products. It was their ability to get those products into millions of neighbourhood stores, replenish shelves regularly and ensure they were available wherever consumers shopped. That distribution muscle was also what many successful new-age digital-first brands lacked when they tried to expand beyond online channels.

But a new set of numbers suggests this traditional advantage may be coming under pressure. New-generation -- or call them Gen Z -- consumer brands are beginning to make inroads into the kirana network, long considered the last stronghold of legacy FMCG companies.

New-generation consumer brands increased their share of India's kirana market to 21.7% in the first half of FY27, up from 14.8% a year earlier, according to exclusive data from retail intelligence platform Bizom reported recently by ET. The share of established FMCG companies declined correspondingly from 85.2% to 78.3%. Bizom tracks 10 million kirana outlets.

The shift has gathered pace recently, with D2C brands expanding their kirana footprint by 200 basis points during the September quarter alone.


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