The Story

Nearly 40years back the fmcg products we're sold in bottles and packets, but they aren't affordable for a common middle class people, then the man from Tamil Nadu, India named Chinni Krishnan come up with an idea that lower middle class person can also afford the products that rich person use.

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This simple idea changed FMCG Market forever | CHIK Shampoo Case Study

This simple idea changed FMCG Market forever | CHIK Shampoo Case Study

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The Idea

For example, that 100ml of shampoo is priced ₹40 and it comes for 20 washes considering 5ml for wash . Chinni krishnan found out we can manufacture the same product in 5ml for just ₹2. But no company step front because of trust issues.

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The Start

Later his son Rangnathan started a company called 'cavinkare' and launched a shampoo called Chik and sold it for 50paise. And the company sold 10lakh sachets in its initial year in 1983. He started with ₹15000 and now the company values ₹1100 crores +

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The Business model and Profits logic

The business model here is, let's take an example of a head and shoulderd shampoo,

The sachets of it available at ₹4 for 8.5ml so it's costing 47p/ml. If the consumer like that product then they shift to the larger size and of the product which priced ₹150 per 180 ml which means the cost of 1ml is 83paise.

The company got profit of 36% increase.

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