The demand for things and goods of everyday use seems to be increasing continuously. But, it is being sold more in the villages than in the city. There has been an increase of 2.4% in the purchase of these goods till October-December. This halted a five-quarter decline in the fast-moving consumer goods (FMCG) segment. communication and […]
Demand for everyday things started increasing, more sales are happening in villages than in cities
The demand for things and goods of everyday use seems to be increasing continuously. But, it is being sold more in the villages than in the city. There has been an increase of 2.4% in the purchase of these goods till October-December. This halted a five-quarter decline in the fast-moving consumer goods (FMCG) segment. According to data from Kantar Worldpanel, a global consumer research firm owned by the communications and advertising giant, the volume of everyday-use goods has gone up by 1.3% in rural markets and 3.6% in cities. This is very less as compared to the December quarter of 2020, at that time an increase of 4.4% in the city and 6.6% in the villages was observed. Wipro CEO Neeraj Khatri said, “Looking at these figures, it is known that sales have increased more in villages than in cities.”
recovery in the markets
Recovery is better in the South and West in the markets that started in the October-December quarter. But we will have to wait for the March quarter to understand whether it is sustainable. Kantar tracks the sales of everyday essentials across the board. NielsenIQ, on the other hand, takes into account the sales of retailers and distributors, as opposed to the earnings data of companies.
“These figures indicate to us that change is happening,” said K Ramakrishnan, managing director, South Asia, Kantar. “The city is ready for change, barring any kind of shocks at the macro level. A bumper crop of wheat is expected in 2023, and thus the villagers can also see a better growth rate than till now.”
Saugat Gupta, managing director, Marico, said on an investor call that in the December quarter, the broader FMCG market saw growth across all categories. Personal care expanded by 4.8% and food and beverage F&B grew by 2.5% despite a slowdown in flour.
He further says, “If you look at the last six months, every month the series has registered a decline. We are emerging from that bad phase of inflation. Instant recovery is impossible, but there will be a gradual recovery.
While some key commodities like palm oil have softened as year-on-year inflation is gradually coming down from the peak, prices of some commodities like milk, barley and soda ash have risen again. In such a situation, it was seen that people are using cheap products.
Source: www.tv9hindi.com
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