Musings From Deepak @ DSG Consumer Partners #100

DSG Consumer Partners publishes its inaugural Sustainability Report

Business must be used as a force for good. Its purpose is not merely to make money but serve the community and satisfy societal needs sustainably. When starting DSG Consumer Partners in 2012, our mission was to partner with world-class founders building insurgent consumer brands for the new-age consumer in India and Southeast Asia. That consumer is increasingly demanding purpose-led, sustainable brands of the future. Over the last 20 years, I have had the fortunate privilege of seeing firsthand how consumers have evolved and what the key factors are when deciding what to buy. In that time period, we have seen sustainability becoming more relevant in that purchasing decision, more so with younger consumers. DSGCP adopts the United Nations Sustainable Development Framework on how we embed ESG. Based on SDG’s rankings, among 163 countries, India & SEA rank poorly due to many impending challenges. A key part of our philosophy is to work with our founders and show how ESG implementation in early-stage businesses can be implemented; it requires a step-by-step, measured approach to balance business objectives and sustainability. Our POV: #People, #Prosperity, #Planet and #Peace are the priority foundational blocks in building a sustainable business that will generate long-term value for stakeholders and the environment.We are delighted to publish The Balancing Act, DSGCP's first Sustainability Report, where we share our perspectives on ESG for early-stage insurgent consumer brands in India and Southeast Asia.

Thinking short-term vs long-term

As I read stories like this, I force myself to zoom out and take a 10-year view. Looking at everything that India has going for it, I have NO doubt that the Indian consumer opportunity will be one of the best investment opportunities of the next 2 decades. Every day, the team at DSGCP meets founders and entrepreneurs who look at the future and want to build a business for the next generation of consumers. The best entrepreneurs understand that markets will go through cycles, ups and down, but if they build any business on a first-principles basis, they only need to think about the long-te

Will consumers pay for sustainable products?

Consumer products that made ESG-related claims on their packaging grew faster over a five-year period than products that made no claims, according to a study jointly conducted by McKinsey and NielsenIQ.

Over the next 2 decades expect pets to become a member of the family

We will see unprecedented growth in all aspects of the pet market in India & SEA over the next 20 years as they truly become part of the family.

Will ITC use M&A as a key part of its playbook to capture more of the Indian consumer wallet?

I am very impressed by ITC'scommitment to work with #insurgentbrands as they build out their CPG portfolio. I would love to meet the strategy and M&A teams to better understand their playbook. At DSGCP, a core part of our thesis when we started 10+ years ago was that big CPG companies, ITC for example, will have little choice but to acquire #insurgentbrands who are eating market share and growing faster. In the last few months, we have seen Marico and Hindustan Unilever already doing this. Expect to see others follow.