April 27, 2021 | 03 min read
Last year, around the same time, the country went into the throes of a lockdown.
Here’s how Indian FMCG performed vs the GDP in 2020-21.
FMCG has definitely been a vital link in helping India’s GDP get back on track in Q3.
Last year, supply was impacted due to inadequate raw material availability and restricted workforce availability due to reverse migration. Distribution was hit due to Kiranas shutting shop due to supply unavailability and due to the difficulty in producing passes required for the movement of goods.
However, with lockdown 2.0 all set to unfold what’s going to happen differently?
Let’s look into the 3 dimensions – Supply, Distribution & Demand.
Manufacturing & Supply of products:
On the demand side, we do see differential demand emerging depending on the product type. Here’s a chart to give perspective as to how we can expect to see demand panning out across product categories in Q1FY2122
So, while India is in the midst of lockdown 2.0, we can be assured that this one won’t have severe economic implications as we had last time around. The industry has become stronger from last time and ensured an uninterrupted supply of products. This will play a critical role in ensuring the FMCG juggernaut continues to move forward.
Early trends in April are heartening and we can definitely keep our hopes up in expecting Q1 growth, not just over 2020 but also over a 2-year period.