Consumer demand, especially in urban regions, shows clear signs of waning, a trend underscored by economic indicators and recent earnings reports across the consumer goods sector. This slowdown is raising red flags for India’s economic momentum.
According to a report by the Retailers Association of India (RAI), the retail sector experienced a growth of approximately 15% compared to the previous year, with an estimated business value of ₹1.1 lakh Crore during the festive week alone.
India’s retail sector is powered by 1.5 crore mom-and-pop Kirana stores, accounting for 90% of grocery sales and growing at an impressive 16% year-on-year.
Under the visionary leadership of Ratan Naval Tata, the Tata Group grew into an iconic Indian conglomerate, with its roots spanning diverse industries—from consumer products and power to consulting, automobiles, and beyond.
Rural India accounts for approximately 65% of the country’s population, representing a vast, underserved market.
As the air fills with the scent of marigold garlands and the flicker of oil lamps, the festive season approaches with its promise of new beginnings, family gatherings, and vibrant celebrations.
“FMCG sales in the country grew 7-9% by revenues in 2022-23. The key growth drivers for the sector include favourable government initiatives & policies, a growing rural market and youth population, new branded products, and growth of e-commerce platforms.”
India’s retail sector is beating other major countries in growth with an impressive 25% CAGR while the rest lingers around 10%.
As the advertising market in India is projected to reach US$14.76 billion in 2024, many FMCG companies are grappling with the challenge of converting brand awareness into actual sales.
“Where Intelligence is Not Artificial.” To our delight, this theme guided our discussions perfectly, leading to valuable insights that helped us navigate the complexities of RTM optimisation.
