This week’s developments in Indian retail and FMCG sectors showcase shifts in consumer behaviour, strategic brand moves, and market dynamics. Retail inflation eased to a four-month low of 5.22% in December, driven by cooling food prices, offering relief to consumers and hope for monetary policy easing. However, rising costs continue to shape purchasing habits, with growing demand for smaller packs of essentials like soaps, snacks, and tea as households balance tighter budgets.
Traditional FMCG distributors are mobilising to counter quick commerce and e-commerce platforms, launching a nationwide campaign across 500 districts. Meanwhile, quick commerce continues to gain traction, contributing 35% of FMCG e-commerce revenue. Platforms like Blinkit and Zepto are fueling growth for brands like ITC and Nestle through faster deliveries and lower commissions, highlighting the growing importance of convenience.
Regionalisation is another key trend, as brands adopt hyperlocal marketing strategies to connect with Tier II and III cities, driven by increased internet and smartphone penetration. As demand slumps and inflation weigh on Q3 performance, this approach is helping brands stay relevant in diverse markets.
In addition, the Maha Kumbh 2025 is shaping up to be a ₹2,000-crore advertising opportunity as brands gear up to engage 45 crore attendees. The week also brings significant leadership news, with DMart’s MD and CEO Neville Noronha announcing his exit in 2026 after two decades. These developments highlight the sector’s adaptability and focus on consumer-centric innovation.
Click on the headings below for insights on how these trends are shaping India’s retail landscape…
1. Retail inflation eases to four-month low of 5.22%
India’s retail inflation eased in December 2024 to a four-month low of 5.22% from a year ago, driven by cooling prices of perishable food commodities, brightening hopes of a rate cut by the central bank.
2. FMCG distributors rally to defend turf against qcom, ecom competitors
Fast-moving consumer goods (FMCG) distributors will hold meetings along with retailers across various cities and districts in India to combat the rise of online retailing over the next three months. FMCG distributors and retailers will launch a nationwide campaign from January 20 to March 31 in over 500 districts and 700 talukas.
3. Maha Kumbh 2025: Brands flood market with Rs 2,000-crore ad surge as 45 crore devotees gather
The Maha Kumbh 2025, poised to be the largest mass gathering in the world, is set to attract a staggering 45 crore devotees. This monumental event has caught the attention of brands across industries, eager to capitalise on the unprecedented scale by pouring thousands of crores into marketing and on-ground activities.
4. The rise of hyperlocal marketing: How FMCG brands are connecting with diverse regional markets
Technological advances and changes in consumer behaviour are helping in the growth of the hyperlocal marketing model. The deep penetration of both smartphones and the internet is opening doors for businesses to communicate directly with customers in Tier II and III cities.
5. Small packs in demand as FMCG companies hike prices
Indians are shopping for smaller packs of consumer goods as rising prices of groceries and household supplies weigh on their budgets. Categories like soaps, snacks and tea have been the most impacted by commodity inflation.
6. ITC, HUL, Nestle: Here’s what to expect from FMCG sector in Q3 result season
Analysts on Dalal Street are cautious about the FMCG (fast-moving consumer goods) sector due to dual stress in the form of demand slump and inflationary pressure. The sector already disappointed equity investors in 2024.
7. 10-min delivery is providing a 'quick' boost to FMCG brands in India
Quick comm is crucial for FMCG companies in India, making up 35% of their e-commerce revenue. Platforms like Blinkit, Zepto, Instamart, and BBnow are key. Companies like Nestle and ITC see significant growth through these platforms. Quick commerce platforms offer better inventory and delivery services compared to traditional stores. Large FMCG brands benefit from lower commission rates.
8. Neville Noronha MD,CEO of DMart to step down in January 2026
Neville Noronha, the MD and CEO of retail chain DMart, will leave his role in January 2026, the parent company of DMart, Avenue Supermarts, said in an exchange filing. According to the petition, Noronha, who began working at DMart in 2004, decided not to renew his contract after more than 20 years of employment.