Low rural offtake weighs as FMCG volumes shrink nearly 2% in Q3FY22



Fast-moving consumer goods or have seen demand, especially from rural areas, take a hit thereby pulling down their sales volumes. However, price hikes taken by the consumer firms to cushion the impact of rising costs have resulted in positive value growth for the industry.


Data by NielsenIQ sourced from the industry shows that volume growth in the October-December quarter (Q3FY22) contracted by 1.8 per cent for the sector while value growth stood at 9.9 per cent, compared to the year-ago period.





According to Bizom’s data, rural sales (in value terms) declined by 7 per cent in January on a month-on-month basis while urban sales of goods from shampoos to soaps bars declined 18.3 per cent which caused India’s overall sales to decline by 10 per cent. On a year-on-year basis, overall rose 9.5 per cent with rural growth being higher by 21 per cent compared to last year January. The overall growth is despite a decline in urban sales, which fell by 15.6 per cent year-on-year in January 2022.


“A key driver of growth year-on-year has been the significant jump in out-of-home consumption driven by high vaccination rates. Tier-2 urban cities (1-5 million population) have seen the biggest impact in sales during the 3rd wave in Jan-22 as stocking levels dropped significantly leading to the drop in sales,” Akshay D’Souza, chief growth and insights officer at Bizom told Business Standard.


In megacities, the decline was 13.3 per cent while in tier-2 cities, the decline in sales was the sharpest at 27.5 per cent. However, in tier-3 cities, sales of FMCG products rose by 7.7 per cent on a month-on-month basis in January 2022.

See also  IOC, L&T, ReNew announce joint venture for India green hydrogen business


Low rural offtake weighs as FMCG volumes shrink nearly 2% in Q3FY22


also called out the slowed down in volume growth in rural areas in their commentary post announcing their October-December results.


“Given the relative susceptibility inflation the rural has seen a visibly higher slowdown than urban,” Saugata Gupta, MD & CEO of Marico told investors post its earnings. He also said that the slowdown was seen in rural and especially in general trade.


Sanjiv Mehta, CMD at HUL also told investors, “We’ve cautioned about rural growth in our September quarter earnings call and we do see the deceleration taking hold with very high levels of inflation that consumers are witnessing. Volumes and market have declined and this decline is more accentuated in the rural markets, and in those categories, which have been impacted more by the inflation.”


Mehta also said, “One aspect we should not forget that in rural while the volume growth are negative, the value growth are still positive.”

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

See also  Wall Street falls as Facebook's forecast disrupts tech recovery

Support quality journalism and subscribe to Business Standard.

Digital Editor





Source link

© 2022, Admin. All rights reserved.

istanbul escort aksaray escort arnavutköy escort ataköy escort avcılar escort avcılar türbanlı escort avrupa yakası escort bağcılar escort bahçelievler escort bahçeşehir escort bakırköy escort başakşehir escort bayrampaşa escort beşiktaş escort beykent escort beylikdüzü escort beylikdüzü türbanlı escort beyoğlu escort büyükçekmece escort cevizlibağ escort çapa escort çatalca escort esenler escort esenyurt escort esenyurt türbanlı escort etiler escort eyüp escort fatih escort fındıkzade escort florya escort gaziosmanpaşa escort güneşli escort güngören escort halkalı escort ikitelli escort istanbul escort kağıthane escort kayaşehir escort küçükçekmece escort mecidiyeköy escort merter escort nişantaşı escort sarıyer escort sefaköy escort silivri escort sultangazi escort suriyeli escort şirinevler escort şişli escort taksim escort topkapı escort yenibosna escort zeytinburnu escort porno 1080p porno izle 4k porno izle 720p porno izle abella danger alman alman porno alman porno izle aloha tube porno amatör amatör porno amatör porno izle anal anal porno anal porno izle arap porno asa akira porno asyalı porno bangbros porno bangbros porno izle banyoda sikis başörtülü porno beeg porno izle beyaz tenli porno izle biseksuel porno izle bisexsuel porno brandi love porno brazzers brazzers porno izle canli porno canli porno izle çinli porno çinli porno izle ensest porno ensest porno izle ensest seks erotik porno erotik porno izle esmer porno esmer porno izle etek altı fake agent fake taxi fake taxi porno fantazi pornoları fantezi porno izle fetiş porno fetiş porno izle fetish fransız porno fransız porno izle full hd hg porno izle gangbang porno genç kız porno izle genç kız sikişi genç teen porno izle gizli çekim porno gizli çekim pornosu grup pornosu grup porno grup porno izle hd pornolar hd porno hd porno izle hemşire porno hemşire pornosu hizmetçi porno hizmetçi porno izle ingiliz porno japon pornoları japon porno kızlık bozma kızlık bozma porno izle konulu porno konulu porno izle koreli porno köylü pornoları kumral porno kumral porno izle latin pornoları latin porno latin porno izle lezbiyen pornoları lezbiyen porno lezbiyen porno izle lisa ann porno liseli pornoları liseli porno liseli porno izle manken porno manken porno izle masaj porno izle masturbasyon porno izle masturbasyon pornoları mature porno mia khalifa porno mia malkova porno milf porno izle mobil porno mobil porno izle öğrenci porno izle öğretmen porno izle okul porno izle olgun kadın pornosu olgun porno oral porno oral porno izle oral seks porna izle pornhub pornhub porno izle porno film izle porno indir porno izle porno resimler porno star porntube porno izle redtube redtube pornoları riley reid porno rokettube rus pornoları rus porno rus porno izle sakso blowjob porno izle sarışın pornoları sarışın porno sarışın porno izle sarışın pornoları sekreter porno shemale sikiş sikiş sikiş izle şişman porno siyahi pornoları suriyeli pornoları swinger porno tecavüz porno teen porn türbanlı pornoları türbanlı porno türk pornoları türk porno türk porno izle türkçe altyazılı porno türkçe altyazılı porno izle xhamster pornoları xhamster porno xhamster porno izle xnxx xnxx porno xnxx porno izle xvideos xvideos porno izle yaşlı porno yeşilçam porno izle youjizz youporn youporn porno izle zenci porno güvenilir bahis siteleri bahis siteleri casino deneme bonusu casino siteleri deneme bonusu para yatırma bonusu bahis siteleri casino siteleribahis sitesi para yatırma