Organized retail has fuelled new growth categories like liquid hand wash, breakfast cereals and pet food in the consumer goods industry, accounting for almost 50% of their sales, said data from market search firm Nielsen. The figures showed some of these new categories got more than 40% of their business from modern retail outlets. The data also suggests how products in these categories reach the neighborhood kirana stores after they have established themselves in modern trade.

while grocers continue to be an important channel, for the new and evolving categories we saw an increased presence of high end products in modern trade. For example, premium products in laundry detergents, dish washing, car air fresheners and surface care increased in availability through this format as these products are aimed at affluent consumers who are more likely to shop in supermarket/hypermarket outlets and who are willing to pay more for specialized products.

Some other categories that have grown exceptionally and now account for bulk of the sales from modern retail are frozen and ready to eat foods, pet food, diapers, pre and post-wash products, hair conditioners, and high-end shaving products, besides others. "With the evolution of modern trade, our growth in this channel has been healthy as it is for several other categories. Modern retail is an important part of our business" said managing director, Kellogg India.

What modern retail offers to companies experimenting with new categories is the chance to educate customers which was not the case with a general trade store. "Category creation and market development starts with modern trade but as more consumers start consuming this category, they penetrate into other channels," said president, food & FMCG category. Future Group- the country's largest retailer which operates stores like Big Bazaar.

But a point to note here is that modern retailers themselves push their own private brands in these very categories and can emerge as a big threat for the consumers goods and foods companies.

for instance, Big Bazaar's private label Clean Mate is hugely popular and sells more than a brand like Harpic in its own stores. "So there is a certain amount of conflict and competition that will play out over the next few years which the FMGC companies will have to watch out for," said, KPMG's executive director(retail).

In the past there have been instances of retailers boycotting products from bug FMCG players on the issue of margins; but as modern retail becomes increasingly significant for pushing new categories, experts say we could see more partnerships being forged between retailers and FMCG companies. "Market development for new categories takes time so brand wars for leadership and consumer franchise will be fought on the modern retail platform. A new brand can overnight compete with established companies by tying up with few retailers in these categories," President of Future Group added.

Once up on a time, there was a shrewd shopkeeper called Makarand. He had a friend called Mihir, who was keen on going on a pilgrimage, but he did not know where to leave his precious savings. So he came to Makarand's shop and said, 'my friend, I trust you please look after my life's savings till I return from my pilgrimage ?' Makarand pretended to be deep in thought, and then said, 'I would rather not. Money spoils relationships. What if something happens to your money while you are away ? You will no longer be my friend.'

As Mihir stood there by his shop thinking about what his friend had just said, an old woman entered on shop and bought some things. One of the boys helping Makarand, gave her less change than he should have. Makarand saw this and pretended to scold the boy, he then ordered him to return the remaining money to the woman. Mihir not knowing that this was an act put up by Makarand to make him believe that he was honest, was convinced about his decision and said to Makarand, 'I have decided. I will leave the money only with you.' Makarand smiled. Then let us do something. Let's take the bag of coins and bury it in a place that only you and I will know of. That way, even if something happens to me while you are away, you will know where your money is. 

Mihir, simple that he was thought this was a good idea and the two went and hid the bag in a secret place. Mihir left the next day on his pilgrimage happy his savings were in safe hands Six months later, Mihir returned. He dumped his luggage at home and went to dig out his bag of savings. But even though  he searched and searched for his valuables, there was no sign of the bag anywhere. In panic, he ran to Makarand, who was busy in his shop. When Mihir asked him about the bag. Makarand pretended to be surprised. ' But I did not go that way in all these months. Why don't you search for it again ?'  he said, putting on his most innocent look. Mihir had no choice but to believe him. sadly, he went home.

On the way, as luck would have it. he met the old woman he had seen in Makarand's shop. Seeing him sad, she asked him what the matter was Mihir told her the whole story. Then she smiled and whispered a plan to him. Not long after, the  woman came to Makarand's shop, carrying a big box. 'Brother, I heard you are a good and honest man. My son went on pilgramage many months ago and has still not returned. I am worried and have decided to go and look for him. Will you look after my box of two hundred gold coins while I am away ?'

Makarand could not believe his luck. He was about to launch into his idea about hiding the box, when an angry Mihir entered the shop, "Where is '...... but before he could  complete  his sentence. Makarand, afraid of being accused in front of the old woman, said quickly. 'I forgot. I had seen some pigs digging around there and had removed the bag just to keep it safe. Here it is. 'And he handed Mihir the bag he had stolen many months ago.

Now the old woman pretended she was seeing Mihir for the first time, 'Son, did you also go on a pilgrimage ?' Could you tell me if you met my son anywhere? His name is Jahangir.' Mihir, clutching onto his precious bag, said, 'Yes, Auntie, I met him on the road a few villages away. He was on his way home. He should be there in a week.'

The old woman leaned over and took her box away from Makarand. Thank you, brother, you have saved me an unnecessary trip. Now, I will need some money to prepare for my son's welcome, 'she added and the two left the shop. Makarand could only stare at them open-mouthed.

What incident in the passage convinced Mihir that Makarand was indeed an honest man?

(A) The incident where he scolded his helper boy for returning less change to the old woman who was a customer in his shop.

(B) The fact that Makarand refused to keep Mihir's money, in the event that it might destroy their friendship.

(C) The incident where Makarand told Mihir that he had kept his bag with him as he saw pigs digging at the very spot where the treasure was buried.

(A) Makarand had a locker in his shop.

(B) He trusted his friend Makarand more than anyone else.

(C) He was scared that if he buried his savings, the pigs would dig it out.