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Today’s Economic Times has a report on how despite health and wellness being the most talked-about fad, there is no dip in demand for sugary or fried,salty foods. The report says that, while the consumer is showing more trends of being health and wellness conscious and there certainly is a lot of talk, she is not walking the talk that much.
This really isn’t surprising. In fact the report gives it away if you read the entire report. Read this:
So,while PepsiCo talks about portfolio transformation to good for you products and is pulling out sugary drinks from schools,and has Tropicana juices,Gatorade sports drink and Nimbooz nimbu pani in its portfolio,the maximum marketing and ad spends of its roughly Rs 100-crore ad spends are directed to its fizzy drinks Pepsi,Mountain Dew,7-Up and Mirinda
To my mind the obvious reason is that the companies have a huge ad spend on bottled cola, fries and sugared water. I guess the operating margins would be higher for them with such products.
The Marketers crib that the consumer is not walking the talk when it comes to health food. But I think the guys who care about their health would stick to unadulterated, simple, home made food. And this means no profits for the big, well paid Marketers of the big companies.
The reason the report interests me is that a similar thing happens in the financial services industry. The “Good for You” financial products (like ETF) is being talked about, but nobody is walking the talk!
The “Good for You” products are not pushed by financial advisors who have more interest in making commission based recommendations.
Would you agree?
I edit Personal Finance Online Resources, nurture Financial Literacy Foundation, deliver Financial Awareness Workshops and have built a desktop RupeeManager.
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Good article. I don’t think ETFs in India are “good for you” – inefficient market, large tracking errors and high expense ratio spoil the fun.
What do you think of this : http://businesspandit.wordpress.com/2009/07/16/efficient-market-hypothesis-in-india/
Agree when you say that Good For You financial products are not pushed by advisors. ETFs are a good example. Other products that comes to mind are New Pension Systme (NPS) and Pure Term Plans
@Neerav Thanks for pointing out NPS and pure term plans.
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