Monday, October 26, 2020
Home News Reports FMCG companies see healthy sales growth signalling a revival in consumer demand

FMCG companies see healthy sales growth signalling a revival in consumer demand

In the past few months, the Indian economy has had to withstand a peculiar kind of a challenge.

This challenge mainly comprised of various doomsayers publicly coming out and being highly pessimistic about Indian economy’s prospects. This pessimism included, former Finance Minister Yashwant Sinha making sweeping charges against the Modi government, its management of the Indian economy and reports indicating that India’s consumption demand might start falling.

The main fundamentals backing this morose outlook were India’s GDP growth numbers falling to a 3 year low of 5.7% in the 1st quarter of 2017 and the disruptive decisions taken by the Modi government in the form of GST and demonetisation.

The perception of the Indian market then soon got a boost, thanks to global financial giants like World Bank, IMF asserting that the Indian economy is on the right track. They also stated that the disruption caused by schemes like GST and demonetisation would only have a short term impact.

Soon after that, we saw consumers starting to speak with their pocket. With the advent of Diwali, a festival which spurs high consumer demand, reports came out about e-commerce firms expecting a 50% sales growth in October as compared to same time last year. Other reports included gold sales picking up before Diwali, and last minute shopping rush during the festival.

Now another report has surfaced indicating that consumer revival is very much on the cards, thanks to a surprise increase in sales volumes of consumer packaged goods and consumer durables. As per the report, the growth seen in FMCG companies include, Hindustan Unilever reporting a 4% growth for 3 months in the July to September quarter.

Also Dabur India, Marico and Godrej consumer products limited (GCPL) saw healthy growth rates of 7.2%, 8% and 10% respectively in the same period.

This was both commendable and surprising, considering Dabur and Marico clocked growth rates of -4.4% and -9% in the June quarter. Hindustan Unilever and GCPL had registered no growth in that period.

The report also claimed that apart from the urban markets, even rural markets are showing signs of a gradual recovery, despite having suffered more due to issues like cash crunch via demonetisation and supplies getting impacted because of the wholesale network running down its inventory ahead of GST’s implementation.

It remains to be seen if such cases result in an overall demand revival and also if the grim days (if there were any) are finally behind us.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

Hemant Bijapurkar
Contributor at OpIndia.com, Wish to write a great trilogy someday!

Related Articles

Trending now

This time for Dussehra, feminists turn Laxman Rekha into a symbol of ‘patriarchy’: Here is why they are batshit crazy

The occasion is Dussehra and along expected lines, feminists are out in numbers in their attempt to prove that Ramayana, the tale of Maryada Purushottam Rama, reeks of misogyny.

‘What Mumbai Police is doing is wrong,’ I&B Minister Prakash Javadekar speaks up on the hounding of Republic TV and Arnab Goswami exclusively to...

Prakash Javadekar gave an interview to OpIndia Hindi Editor, Ajeet Bharti, where he answered questions on a host of issues.

How Indian ‘liberals’ decided to embrace Hindutva!

At his traditional Vijaya Dashami rally in Mumbai yesterday, Maharashtra CM Uddhav Thackeray put it clearly. One must take lessons in Hindutva from RSS chief Mohan Bhagwat.

Dainik Bhaskar uses NITian Anita Bharti’s image in an article about actress Preetika Chauhan’s arrest by NCB in drug case

Anita Bhati is a student of NIT Patna, who had recently started an online portal of 'TuOn', providing free coaching to students from 7th to 12th grade and those preparing for competitive exams

Editors Guild issues a shameful statement tacitly condoning witch-hunt against Republic TV and Arnab Goswami by Mumbai Police: Details

After almost two weeks of the witch-hunt launched by Mumbai Police against Republic TV and Arnab Goswami, the Editors Guild has finally issued a statement

The Ritika Jindal Syndrome: The desecration of the Temple in Himachal Pradesh shows the urgent necessity of reform in public administration

Ritika Jindal received huge praises for breaking an "age old parochial tradition". She also "taught lessons of equality to priests" apparently.

Recently Popular

Editors Guild issues a shameful statement tacitly condoning witch-hunt against Republic TV and Arnab Goswami by Mumbai Police: Details

After almost two weeks of the witch-hunt launched by Mumbai Police against Republic TV and Arnab Goswami, the Editors Guild has finally issued a statement

Kerala: Photographer Dia John depicts Hindu deity as smoking weed, deletes picture after outrage

Kochi-based Mukkootil Bhagavathy temple had filed a complaint against Dia John for hurting Hindu religious sentiments

France: Charlie Hebdo cartoons projected on government building to express solidarity with deceased teacher who was beheaded by Islamic terrorist

Days after the barbaric beheading of teacher Samuel Paty on the streets of Paris by a terrorist for showing the cartoons of Prophet Mohammad to his students, support continues to pour in for the deceased teacher.

‘He supplies drugs and girls’: Estranged wife of Mahesh Bhatt’s nephew Luviena Lodh alleges harassment by nephew-uncle duo

Luviena Lodh said that Mahesh Bhatt is the don of the industry, and he controls everything that goes on in the film industry

After Turkey President Erdogan says Macron ‘needs treatment’ over attitude to Muslims, Pakistanis trend #boycottfranceproducts on Twitter

Pakistani bots putting their weight behind Turkey president Erdogan's call of 'giving treatment' to French President Macron.
- Advertisement -

YouTuber Lakshay Chaudhary levels serious allegations of fraud against Gaurav Wasan of Swad Official whose video on ‘Baba ka Dhaba’ had gone viral

Gaurav Wasan of Swad Official had uploaded a video about the financial difficulties faced by the elderly couple of 'Baba ka Dhaba'.

Pakistan: Foreign Office summons French ambassador over Charlie Hebdo cartoons

Foreign Office, Pakistan summoned the French envoy for the public display of Charlie Hebdo cartoons in French govt buildings.

Rajasthan: Dalit salesman burnt alive by liquor contractors after pouring petrol for demanding five months due salary

The victim used to work at a liquor shop and had not been paid salary for five months. His charred body was found inside a deep freezer in the gutted liquor shop.

Sameet Thakkar sent to police custody by Nagpur court till October 30, was arrested for making ‘Baby Penguin’ remark against Aaditya Thackeray

Two FIRs were registered against Sameet Thakkar for allegedly making objectionable remarks against Uddhav Thackeray and son.

BJP emerges victorious in Ladakh Autonomous Hill Development Council elections, wins 15 out of 26 seats

The BJP has won 15 of the 26 elected seats in the Ladakh Autonomous Hill Development Council (LAHDC).

This time for Dussehra, feminists turn Laxman Rekha into a symbol of ‘patriarchy’: Here is why they are batshit crazy

The occasion is Dussehra and along expected lines, feminists are out in numbers in their attempt to prove that Ramayana, the tale of Maryada Purushottam Rama, reeks of misogyny.

Republic TV and Maharashtra govt lock horns in Supreme Court: CJI asks both to submit affidavits in 2 weeks

Arnab Goswami and the Maharashtra government are at loggerheads since Republic Bharat questioned the silence of Sonia Gandhi in Palghar Sadhus' mob lynching case.

‘China’s world domination is imminent and Europe should wake up to this danger’: Former German spy chief cautions against Beijing

Gerhard Schindler, the former German spy chief, has asked European countries, particularly Germany, to reduce its "strategic dependence" on China

‘What Mumbai Police is doing is wrong,’ I&B Minister Prakash Javadekar speaks up on the hounding of Republic TV and Arnab Goswami exclusively to...

Prakash Javadekar gave an interview to OpIndia Hindi Editor, Ajeet Bharti, where he answered questions on a host of issues.

Chile to rewrite its Pinochet-era constitution, over 78% of Chileans vote ‘yes’ in the referendum

Over 78% Chileans have voted in favour of a new constitution, to be written by an 155-member elected body.

Connect with us

245,563FansLike
468,824FollowersFollow
19,300SubscribersSubscribe