Large consumer goods companies are focusing on urban buyers with high-margin products to offset the decline in rural markets. Urban areas contribute approximately 63% of total FMCG spending, according to Nielsen. Executives and analysts emphasize the importance of targeting urban consumers, especially amid a rural slowdown, as urban consumption continues to grow steadily. Additionally, the central drug regulatory authorities under the Union Health Ministry are launching a new initiative to make OTC drugs available in general shops.
This week’s edition of “Indian Retail at a glance” shares insightful articles Southern India leads post-Covid FMCG sales surge. Impact of 2024 Lok Sabha Elections on FMCG, auto, healthcare, IT services, private banks, capital goods. Why FMCG firms take premium route to drive earnings amid slowdown?
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Southern India leads post-Covid FMCG sales surge, Kantar report reveals
In a recent report released by global consumer research firm Kantar, findings revealed a notable surge in consumer spending on fast-moving consumer goods (FMCG) across southern states in India. According to the report, consumers in the region exhibited the highest expenditure on FMCG products, with an average increase of Rs 2,261 per person in 2023 compared to the previous year.
Demand momentum in India rising, rural spending picking pace, says RB
Aggregate demand momentum in India is rising, with the overall non-food spending being pushed up by green shoots in rural spending recovery, the Reserve Bank of India said in its monthly bulletin
As India completes the fourth phase of its hotly contested Lok Sabha elections, Prabhudas Lilladher (PL), in its latest India Strategy Report – Mandate 2024, Brace of Volatility, zeroed in on the sectors that will do well in case of INDIA alliance coming to power, sectors that will perform in the event of NDA coming back to power and on the sectors that will perform well irrespective of election results.
Alpha Wave-backed 1K Kirana’s valuation nosedives 60% in internal round
Kiranatech platform 1K (formerly 1K Kirana Bazaar) secured Rs 32 crore or $4 million in its extended Series B round (bridge round) from existing investors in July last year at a 60% haircut in valuation.
Common drugs may soon be available at Kirana stores near you
In the very near future, you may be able to buy commonly administered medicines meant for cold, pain, fever, allergy, cough or an aspirin/ ibuprofen for pain relief from your neighboring Kirana store.
FMCG firms take premium route to drive earnings amid slowdown
Large fast-moving consumer goods firms are ramping up their premium portfolio to drive growth in high-margin products and improve profitability, as the sector continues to battle a slump in rural demand.