While FMCG companies have increasingly relied on the hinterland, home to more than 800 million people, the market contributes just 36% of the overall industry sales despite having over two-thirds of India’s consumer base. That could change now, say companies.
While FMCG companies have increasingly relied on the rural hinterland, home to more than 800 million people, the market contributes just 36% of the overall industry sales despite having over two-thirds of India's consumer base. That could change now, say companies.
Though listed companies United Spirits and Radico have not announced their quarterly earnings yet, the country's second biggest spirits firm Pernod Ricard posted a 1% sales increase in the nine months ended March.
For fiscal 2019-20, the Indian unit of the world's biggest coffee retailer expanded sales by 21%. With revenues of Rs 447 crore in FY19, this translates into about Rs541 crore in annual sales, paced by the addition of new outlets as demand for quality beverages increased in Indian metro cities.
Global brands dominate Indian market in most categories and there are few local alternatives.
Sales of fast moving consumer goods grew 79% during fourth week of March when the government first ordered a nationwide lockdown for 21 days, according to Kantar Worldpanel, a global consumer research firm owned by communications and advertising giant WPP.
In India, several states either control liquor retailing or wholesale distribution or both.
Top officials close to the development told ET that HUL will train a large set of advisors and beauty consultants, numbering about 1,500, to become entrepreneurs so that they can set up their own businesses.
LG, Samsung, Vivo and Xiaomi are also rolling out hyperlocal sales platforms that will connect their offline stores to consumers searching products online so that the outlet nearest to the consumer can deliver the order, industry executives said.
Over the past few weeks, chief executives of Unilever, Mondelez, Hershey's Procter & Gamble, Coca-Cola and Kimberly Clark have said India’s Covid-19 lockdown protocols had led to severe supply chain disruptions and labour shortages, hurting business in the key market.
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