Brand Marketing
FMCG firms cut senior roles by 32%; Total headcount shrinks 9.26% in FY25
Quarterly Curse: How short-termism is undermining FMCG leadership and long-term brand value
As CEO tenures shrink and strategic patience wears thin, India’s FMCG giants are caught in a churn of leadership changes, quick wins, and tactical marketing, which experts say, can affect long-term resilience and consumer trust.
This short-term thinking has created a volatile environment, with leadership changes becoming both symptom and cause of deeper strategic instability., say experts. (Image source: Unsplash)
In India’s fast-moving consumer goods (FMCG) sector, the pace of change has become relentless, not just in consumer preferences or channel dynamics, but at the very top of the leadership chain.
A new era of 'quarterly capitalism' has taken root, pushing companies to prioritize short-term wins over long-term value creation. CEO tenures are shrinking, brand-building has become tactical, and deep-rooted business strategies are often shelved in favor of immediate investor appeasement.
The recent wave of leadership shakeups underscores the churn sweeping through the FMCG sector. Hindustan Unilever replaced Rohit Jawa with Priya Nair in under a year, while Unilever globally parted ways with Hein Schumacher in less than two. Closer home, companies like Hindustan Coca-Cola Beverages, Nestlé, and L’Oréal are also appointing new top bosses as they grapple with sluggish growth, mounting competition, and the urgent need to respond to shifting consumer behavior and digital disruption.
This short-term thinking has created a volatile environment, with leadership changes becoming both symptom and cause of deeper strategic instability.
“The pressure on CEOs to deliver results faster than ever before is real,” said Anup Sharma, a strategic communications advisor.
“Boards are no longer willing to wait three to five years for a turnaround. They want CEOs who can execute today, even if it comes at the expense of tomorrow.”
Indeed, across global markets, CEO turnover is reaching record highs.
In 2025, nearly 15% of S&P 500 companies changed CEOs, considered the highest churn rate in decades. India’s consumer sector is beginning to mirror this volatility, driven by sluggish urban demand, the rise of agile D2C players, and digital-native consumption patterns that challenge legacy models.
Boards replacing CEOs for underperformance
While such transitions are often spun as strategic pivots, the reality is more sobering.
“Boards are replacing CEOs for underperformance even before investors intervene,” said Krishnarao Buddha, former senior category head of Parle Products.
“The problem is, you cannot build brands or modern capabilities in 18 months. FMCG success is cumulative, it comes from consistent leadership, not quarterly gymnastics.”
Short-termism isn’t just a boardroom issue- it is fundamentally reshaping how companies approach brand-building.
Mayank Shah, VP at Parle Products, pointed out that tactical campaigns now take precedence over strategic brand investments, simply because the latter don't yield quarterly returns.
“We are seeing brands being used as cash cows to deliver rosy top and bottom lines. Long-term marketing initiatives are shelved because they won’t show up in next quarter’s earnings call,” he said.
Stagnation masked as stability
This approach has broader consequences. Strategic initiatives, such as digital supply chain upgrades, AI-driven personalization, or sustainability-led innovation, often require time and capital.
But when CEOs are judged every 90 days, even forward-thinking leaders hesitate to commit to such projects. The result: stagnation masked as stability.
A telling example is the transformation of consumer behavior in urban India. With over 800 million smartphone users and quick commerce platforms like Blinkit and Zepto reshaping last-mile delivery, digital commerce has become non-negotiable. Nestlé’s Maggi and KitKat now generate nearly 60% of their e-commerce revenue from such platforms, and HUL’s digital-first brands are outpacing growth from traditional trade. These shifts demand long-term investments in tech, talent, and infrastructure- investments that may not pay off within a fiscal year.
Yet, as Prabhakar Tiwari, Partner at FRN Advisory, observed, “Real consumer trust isn’t built in a financial quarter. It needs consistent leadership and long-haul thinking. The rising churn reflects the system’s impatience more than any leadership gap.”
Impact on internal culture
Leadership volatility also destabilizes internal culture. Quick CEO exits often lead to cascading resignations in senior leadership, eroding institutional memory and creating strategy vacuums. Studies show that every additional year of CEO tenure can improve annual profitability by 0.3 percentage points, evidence that leadership continuity isn't just symbolic, it's profitable.
But what’s driving this systemic impatience? Beyond investor activism and quarterly reporting pressures, it’s also a perception issue.
As Harsh Goenka recounted recently on X (Twitter), a global CEO once remarked that Indian CEOs were expected to be “great hands and legs, but no need for brains. That part’s here in the UK.” This outdated mindset, which sees execution as the sole metric for success, discourages risk-taking and stifles innovation.
Even when new-age leaders are brought in with strong digital backgrounds: like Manish Tiwary, former Amazon executive now at Nestlé India, the expectation remains: deliver quickly or make way. Boards increasingly value agility over tenure, preferring fresh starts to long-term bets.
Yet this revolving door of leadership comes at a cost. Marketing campaigns turn episodic. Brand narratives are reset every year. Cultural depth is compromised.
“It’s a system failure,” said Tiwari. “You can’t expect CEOs to be visionaries and firefighters at the same time.”
So, what’s the way forward?
Experts argue for structural changes that incentivize long-term thinking. This includes redesigning compensation packages to reward sustainable growth, reforming boardroom KPIs to account for strategic progress, and actively grooming internal leadership pipelines to preserve continuity.
As FMCG companies navigate a consumer landscape shaped by data, disruption, and decentralization, they must resist the lure of quarterly optics. It’s time boards, investors, and CEOs align not just on what’s urgent, but on what’s truly important.
Until then, the industry may continue to chase short-term sugar highs.
'I'm going to propose to you': WCL owner's live proposal to Karishma Kotak stuns fans and goes viral
AB de Villiers’ fireworks helped South Africa Champions lift the World Championship of Legends trophy, but it was league owner Harshit Tomar’s unexpected on-air proposal to presenter Karishma Kotak that stole the internet’s attention.