Pakistan has a rich and diverse market for brands, which reflects in its leading brands. It has flourishing business communities and several homegrown brands that have made a name for themselves both domestically and internationally. These brands represent different industries, such as textiles, food, and electronics, among others. While there are some challenges that these brands face, there are also many good prospects too; that they can take advantage of to expand their businesses.
Thousands of Pakistani brands; however appending below are a few prominent ones:
PSO, Engro, Dawlance, National foods, Nestle, Shan Food, Khaadi, Gul Ahmed, Coca Cola, Servis, PepsiCo, Unilever, Super Asia, Dalda Food, K&N, Mitchells, Murree Brewery, Packages and PEL etc.
These are just a few examples of leading Pakistani consumer brands. These companies have their own strengths and weaknesses. While there are some challenges that these brands face, there are also many prospects that they can take advantage of to expand their businesses.
Recently Arora magazine conducted a survey with leading 100 heads of agencies and corporate organizations and asked them to name two Pakistani brands they consider the most iconic. Twenty-four percent of the respondents were named Shan, followed by Khaadi and Rooh Afza (21% each), Tapal (19%) and Dalda and Pakola (10% each). (Other popular brands included Coke Studio, HBL, MoltyFoam, National Foods and Sooper).
With the exception of Khaadi, all these brands are FMCGs. And except for Shan and Khaadi (they were established in 1981 and 1998 respectively), they have been around for as long as Pakistan has existed, give or take a few years. Rooh Afza was established before Partition, Tapal and Dalda in 1947 and Pakola in 1950 followed by Dalda in 1952. The fact that these six are among Pakistan’s oldest brands may have to do with their popularity. The survey reveals the two brands that have the potential to be iconic in the future are Khaadi led with 14% of the ‘votes’ followed by Shan and Daraz with 13% each and whereas Bykea and PSL have 8% each.
Several advertising and marketing professionals were not surprised that no brand emerged as a ‘big winner’ and attributed this to a lack of consistency in their messaging. Suffice it to say that even the people who were optimistic about what makes our advertising distinctive were rather critical at times, and responses ranged from positive to plain negative and mixed. The industry has been able to generate a number of inspiring local brand stories. Many brand stories have been built around engaging TVCs with solid production values. There is a whole concept of diversification which means from being print driven to TV and now digital media.
One of the words used to describe our advertising is “risk averse”, both on and off the record and a creative chalks this up to the increasing conservatism apparent in today’s society. Pakistani advertising is stuck in terms of cultural and societal norms. The focus needs to shift to over 65% of the population – those under 30. They belong to the future with rapidly changing work-life settings.
Pakistani Gen Z is the future of our economy. Gen Z is the future of the market and ignoring them means ignoring a population that defines what the market is all about. As marketers, we still do not know enough about them. It is crucially important that we do in Understanding Pakistan’s New Consumers. There are a lot of ways to do marketing communication strategies to change to resonate with Gen Z.
Whether consumers are Gen Z, Millennials, Gen X, or Baby Boomers, the fact remains that a return to “basics” when it comes to brand building may be what is required most if we are to create iconic brands and advertising that spells magic. The brands that reach ‘global’ iconic status will be those that cater to global audiences and could possibly include Bykea and Daraz, textiles that produce western wear – Khaadi or Gul Ahmed – or FMCGs such as Dipitt or Tapal.
Below are some of these problems and prospects.
Problems
- Economic Uncertainty: Pakistan’s economic status is very unpredictable, which poses a significant challenge for the brands. High inflation rates and fluctuating exchange rates can have a detrimental impact on their profits.
- Political Instability: Pakistan’s Political instability is the major challenge for the leading brands of Pakistan. It creates uncertainty and adversely affects the overall business environment.
- Energy Crisis: For years we are having an acute energy crisis. Especially in summer, we encounter frequent power cuts and load shedding. It has a very bad impact on manufacturing activities as they exclusively depend on the continual power supply.
- Lack of Innovation: This is one of the significant problems. Many of the local leading brands are traditional businesses that have been operating for quite a long time. The lack of innovation in products and services is hindering their growth potential. There is little to no investment in research and development. This lack of innovation can lead to a decline in market share and revenue, as consumers are increasingly looking for new and innovative products.
- Limited Market Size: The market size in Pakistan is relatively small compared to other countries, which limits the growth potential of local brands.
- Competition: Competition is another significant challenge faced by leading brands in Pakistan. Local companies are facing tough competition from international brands that have entered the market. With the growth of e-commerce and globalization, consumers have more options than ever before, and local brands need to differentiate themselves to stay relevant.
- Infrastructure: It is also a significant challenge for businesses in Pakistan. The lack of modern infrastructure, including transportation, communication, and energy, can make it difficult for businesses to operate efficiently. This can result in higher costs and longer lead times, which can negatively impact the competitiveness of local brands.
- Limited Digital Presence: Many leading brands in Pakistan have a limited digital presence, which restricts their ability to connect with a wider audience and reach out to potential customers.
- Changing consumer preferences: Consumer preferences are continually evolving, and local brands need to keep up with these changes. For example, consumers are becoming more health-conscious, and they are looking for products that are organic, natural, and free from harmful chemicals. Brands that fail to adapt to changing consumer preferences risk losing market share to competitors who can meet these changing demands.
- Limited R&D: Pakistan is far behind in R&D. The lack of the resources and investment needed for research and development, hinders its ability to introduce new products and remain competitive in the market.
Opportunities
- Population Size: Pakistan has a mammoth population of over 200 million people, providing a large consumer base for businesses. This presents significant growth opportunities for leading brands.
- Youth Population: Pakistan has a young population, with a significant portion under the age of 30. This demographic is more open to new products and services, providing opportunities for growth & expansion.
- Young and tech-savvy population: Pakistan has a young and tech-savvy population, which presents opportunities for local brands to connect with consumers through digital channels. Brands that invest in social media, e-commerce, and other digital channels can reach a broader audience and grow their customer base.
- Growing Economy: Though a bit slow Pakistan’s Economy is growing, and this presents significant opportunities for local brands. As more people enter the middle class, there is a growing demand for products and services, which local brands can capitalize on.
- Growing Middle Class: Pakistan’s middle class is growing rapidly, providing a growing market for premium brands and higher-end products.
- Increasing Disposable Income: As the average income of Pakistanis increases, there is a higher demand for quality products and services, providing opportunities for leading brands to expand their customer base.
- Strategic Location: Pakistan’s strategic location provides access to major markets such as China, India, and the Middle East. This makes it an attractive location for businesses that want to expand their operations in the region.
- Export Potential: Though lagging behind but still many Pakistani brands have the potential to expand beyond the local market and into international markets. As the country’s economy continues to grow, there is a growing demand for Pakistani products in international markets. Brands that can offer unique and innovative products have the potential to tap into this growing demand.
- E-commerce Growth: E-commerce is growing rapidly in Pakistan, providing new sales channels for brands. This creates opportunities for brands to reach new customers and expand their businesses.
- Increasing Disposable Income: As the average income of Pakistanis increases, there is a higher demand for quality products and services, providing opportunities for leading brands to expand their customer base.
The author, Mr. Nazir Ahmed Shaikh is freelance writer, columnist, blogger and motivational speaker. He write articles on diversified topics. Mr. Shaikh could be contacted at nazir_shaikh86@hotmail.com.