Speaking at a session on consumer goods, Godrej Soaps managing director Adi B Godrej stated multinational companies had realised that the best way to make a foray into the country was through acquisitions of local companies. We are going to see an increased trend of acquisitions in future, he said.

Quoting a recent A&M-ORG Marg survey, Godrej felt that brand building was going to be a tough proposition for new players in the market. Most of the brands which made to the top 20 positions were those which had been in market for a very long time.

Godrej stressed that investment in brand building was going to be a crucial factor for survival. "Investment in brand was never emphasised earlier. The perception is changing very fast now." Companies would also be required to pay attention to the distribution of products now.

He pointed out that mega brandsin the market today were those which had sales in excess of Rs 1,000 crore. These were indigenous brands which carried the company or a family name.

Moderating the session, AT Kearney principal Simon Bell felt that Indian consumer goods sector was facing rough weather as no significant season of peak had been recorded in the last few months. He pointed out that the slowdown in the economy was forcing companies to face up to increased competition and the consumer goods industry was becoming more of knowledge industry. Globally, India also had a competitive advantage due to its vast knowledge base.

Tata Sons executive director R Gopalakrishnan said research and development (R&D) was going to be an important determinant of the survival of a brand.

He suggested that companies set aside 15-20 per cent of their advertising budget for R&D and market research. Additionally, companies should ensure delivery of their news better and adapt it to the changing consumer requirements.

Bata Shoe Foundation chairmanThomas J Bata observed that there was no isolation and insulation of any type of area from the other. He observed that the habits of people were changing the world over and Indian consumers too had adapted to the changes occurring all around.

The economic shocks which had been felt across the globe in the past few months were affecting the middle class. Everybody had to make adjustments in the changing environment and new activities which were taking place all around would benefit the middle class population, Bata felt.

Chief executive of Hindustan Thompson Associates M K Khanna felt that the atmosphere of doom and gloom was uncalled for in India. "Things are not all that bad," Khanna stated, adding that everybody had overestimated the market. Business cycles cannot always be on the high, he remarked.