As we enter into the last month of the year, it is critical to understand if there is resilience in consumption during the post-festive period.
Sales in November are usually a good indicator of how consumers are lapping up products in the absence of a trigger like a festival.
There’s definitely an overstocking of festive products placed in kiranas during October 2022, which continued to get liquidated in November 2022. At the same time, we’re also seeing strong acceptance of winter products that continue to see good traction in November, and we expect this to get stronger in December too as we enter into the winter season.
Retailers have tried to create occasions and moments on global events like the Black Friday, which saw very little traction for FMCG products.
While inflation has come down by a bit, there’s still room for bringing it down further to get consumers to spend on WANT products.
Overall, while we do see commodity prices coming down, it remains to be seen how soon these will get passed onto consumers.
Many large consumer companies continue to focus on improving direct distribution, especially in rural areas. This strategy is employed to fuel consistent growth across many FMCG companies in India, even as they work on unlocking efficiencies in their existing operations