The entry of new players, heightened discounting activity and aggressive distribution strategy has enabled the traditional players to concentrate on further building the brand image. “We would definitely like to overall spend money in terms of really building the brand and looking at a strong mind share which is going to come about to that extent as we go forward,” said Asian Paints Chief Executive Officer Amit Syngle in a post earnings call earlier this month.

the companies ramped up their spend for hiring  more sales personnel to penetrate smaller and untapped retail markets. However, now, the companies are taking a step back to review their cost structures.

“The entry of deep-pocketed new players with significant investment commitments could drive shifts in market share and cost structures across the industry,” brokerage Motilal Oswal said in a recent note.