This week’s edition delves into the evolving dynamics of India’s FMCG and retail sectors, where companies face a mix of headwinds and opportunities. As inflation, unseasonal weather, and declining consumer sentiment dampen year-end growth expectations, emerging players are leveraging omnichannel strategies to stay resilient.
From HUL to Godrej Consumer Products, industry leaders grapple with tepid demand and rising costs, while Tata Consumer Products turns to advanced forecasting tools for efficiency. Meanwhile, India’s largest FMCG companies are racing to strengthen their D2C presence, even as retail inflation moderates slightly, keeping the focus on consumer affordability.
Click on the headings below for insights on how these trends are shaping India’s retail landscape, and what they mean for the times to come…
1. HUL To Parle: FMCG Majors Brace For Tepid Year-End With Little Optimism For 2025
Faced with weak demand and rising costs, the fast-moving consumer goods industry may end the year on a choppy note. After the crucial festival season failed to provide the much-needed relief, several top executives now remain cautious about growth for the year ahead, as inflation and unemployment continue to weigh on consumer sentiment.
2. What’s driving new FMCG players to omnichannel expansion?
Emerging FMCG brands from South India are digging into data to optimize ad spends, accelerate growth and maximize returns.
3. Soap, home insecticides segments hit, Godrej Consumer Products expects flattish volume growth in India sales in Q3
Godrej Consumer Products (GCPL) anticipates flattish volume growth and mid-single-digit sales growth in India for the December quarter due to increased soap prices and sluggish home insecticide sales caused by unseasonal rains. While two-thirds of its domestic business is affected, the remaining portfolio is expected to deliver double-digit growth. International business continues to perform well, particularly in Indonesia.
4. Real Wage Decline Hits Economic Growth, FMCG Sector
A recent survey by the Ministry of Statistics and Programme Implementation has revealed that the real wages of most salaried Indian workers have either decreased or remained stagnant over the past six years. This trend has resulted in reduced purchasing power, ultimately affecting economic growth.
5. Great Indian shopper goes silent while country may have two vicious circles to break
India's recent economic slowdown, marked by a 5.4% GDP growth last quarter, has raised concerns. Lower government spending and contracting urban wages are contributing factors. This slowdown, impacting the urban middle class, could have significant political and economic consequences if it continues.
6. Tata Consumer Products Taps Forecasting Tool to Improve Tea Blending
Tea company Tata Consumer Products Limited is optimizing the procurement of raw materials used in its teas and improving planning for the blending process. It is working with supply chain planning company Arkieva to help forecast the availability and prices of components used to make its teas.
7. Retail inflation seen to have moderated in November, but still high at close to 5%
Amidst slowing economic growth and high inflation that is seen to have impacted the Reserve Bank of India’s Monetary Policy Committee’s legroom to cut rates, retail inflation in November is seen to have moderated but remained high at 5%. However, there remain concerns about the prices of kitchen staples such as tomatoes and onions.
8. Fortune 500 India: FMCG Giants race to catch up in the D2C Game
India’s largest FMCG companies are catching up in the beauty and personal care direct-to-consumer race but need to shore up on investments