← Business Models: Core (all topics)

Organised share shift

Demand & Consumer Trends · Formalisation

What it is

Movement of demand from unbranded and informal manufacturers to organised branded players, driven by GST formalisation, quality control orders, safety awareness and modern retail

In cables and electrical goods the unorganised segment has historically held substantial share on price

Impact on industries

  • Structural volume tailwind that requires no market growth - organised players gain share from the informal base regardless of category expansion
  • Safety-critical products favour brands, since a counterfeit wire failure causes fire and the buyer cannot verify quality at purchase
  • Quality control orders and BIS mandates raise the compliance cost of staying informal, accelerating the shift
  • Pace depends on enforcement rather than on consumer preference, so it moves with regulatory attention

Industries affected