Friday, April 07, 2006

Haldirams, part deux

Haldirams, those ubiquitous farsan sellers have impressed me. This is perhaps my second exclusive post on them, having written about them in a few other contexts. Farsan in India essentially stands for fried snacks - for lack of a better word. Farsan, till Haldirams came into the picture was a non branded market. There were a few players who were branded, but their branding was atbest restricted to word of mouth, a few strategic billboards, strategic outlets and that too to a city at the most. A lot like the way sweet dealers are locally branded. So if you go to Hyderabad, Pulla Reddy comes to mind. Grand sweets comes to mind in Chennai and so on.

While some of the sweet dealers have taken small steps towards expanding their marketshare, Haldirams, has broken out of this local branding rut and how. Haldirams, has, over the years, with its colourful packaging, premium positioning, consistent quality and taste and a variety of sizes and flavours made itself synonymous with quality farsan. There arent too many places where you dont see Haldirams. Haldirams, (my personal experience) is ok on quality, not great, but far better and reliable than any other local brand.

More and more unbranded categories are slowly being branded as companies discover more money in serving Indians anything in a packet that they used to make in their homes once upon a time.


Paddy said...

While I agree on the "Haldiaram" way to attracting customers, what I beielve is that barriers to entry are very low and hence similar to the post that you wrote on t-shirts - the Tantra Brand.

I saw "Khari" biscuits in branded form in Food Bazaar long known for Mom & Pop stores product.

Yes Haldiram has first mover advantage but its not long before others can capture the market space which is obviously high margin business (on a relative basis).

Neelakantan said...

I am also tempted to think that the entry barriers are low here, but I think they arent.

Garden has made small inroads but Haldirams is still big in this space, i think thanks to its reach and distribution.

Anonymous said...

Haldirams makes these snacks available in places where they otherwise would not exist. I am an American in Hawaii. In parts of America with large Indian/Pakistani/Bangladeshi communities, there are fresh, locally made sweets and mixes. But in places like here, that lack South Asian communities of substantial size, there is no such thing. But Haldirams products are sold here. I'm very happy to have access to them.

malapati said...

I wrote few days ago on haldiram and snacks as a business opportunity in my Rural Development blog.