FMCG and Consumer Durable Companies Aim for 40% Growth in Festive Season
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[1]
FMCG, consumer durable players target 40% growth this festive season
Fast-Moving Consumer Goods (FMCG) and White foods makers are expecting a 40 per cent growth in sales this festive season. Makers who witnessed a muted growth in H1 owing to general elections are expecting recovery with higher growth in H2. "This year, the summer season was a great start for the industry and we expect the festive season to continue this trend. To add to the festive cheer, we have an extensive product lineup with intelligent AI Technology that optimizes performance and adds convenience." Also read: Marico expects high single digit growth in this quarter "The festive season begins with Onam in Kerala- for which we have already announced the specially curated Onam Maharaja offer for our beloved Kerala consumers. The offers range from extended warranties and cashback to easy EMI and lucky gifts worth up to ₹95,000 and we will see the momentum of offers continuing through the next couple of months till Diwali. We expect 40 per cent higher consumption during the festive season this year in comparison to last year," said Kamal Nandi, Business Head and EVP, of Godrej Appliances. Companies are offering unique experiences for consumers including Augmented Reality (AR) for personalised experiences while shopping. "Chocolates have become the preferred gift choice for Indians, with festive gifting contributing to 10 per cent of the premium chocolate gifting segment." "To mark the festive season starting with Rakhi, we have introduced bespoke gift packs featuring HERSHEY'S Kisses and HERSHEY'S Exotic Dark, supported by unique personalized experiences for consumers through AR, marketing campaigns and promotions on Amazon, Flipkart, Swiggy, and Blinkit. Through our core portfolio, gifting options, and new launches, we expect to drive category growth throughout the festive season," said Luigi Mirri, General Manager, Hershey India & APAC. Massive discount offer Companies are likely to offer increased year-on-year discounts this festive season. "Festive periods have led to a surge in smart TV sales, so we can say our expectations for this festive season are high. Consumers can anticipate some of the year's lowest prices, with discounts ranging from 15 per cent to 30 per cent. To secure the best deals, shoppers should plan their purchases during peak discount periods." "Additionally, there will be numerous combo offers, especially for consumer durables. For instance, purchasing a TV may come with attractive discounts when bundled with a washing machine, along with favourable exchange and bank discount offers," said Avneet Singh Marwah CEO of SPPL Exclusive brand licensee of Thomson in India Also read: FMCG industry betting on volume-led growth recovery in FY25SHARE Copy linkEmailFacebookTwitterTelegramLinkedInWhatsAppRedditPublished on August 11, 2024
[2]
FMCG, conusmer durable players target 40% growth for FMCG & White goods
Fast-Moving Consumer Goods (FMCG) and White foods makers are expecting a 40 per cent growth in sales this festive season. Makers who witnessed a muted growth in H1 owing to general elections are expecting recovery with higher growth in H2. "This year, the summer season was a great start for the industry and we expect the festive season to continue this trend. To add to the festive cheer, we have an extensive product lineup with intelligent AI Technology that optimizes performance and adds convenience." Also read: Marico expects high single digit growth in this quarter "The festive season begins with Onam in Kerala- for which we have already announced the specially curated Onam Maharaja offer for our beloved Kerala consumers. The offers range from extended warranties and cashback to easy EMI and lucky gifts worth up to ₹95,000 and we will see the momentum of offers continuing through the next couple of months till Diwali. We expect 40 per cent higher consumption during the festive season this year in comparison to last year," said Kamal Nandi, Business Head and EVP, of Godrej Appliances. Companies are offering unique experiences for consumers including Augmented Reality (AR) for personalised experiences while shopping. "Chocolates have become the preferred gift choice for Indians, with festive gifting contributing to 10 per cent of the premium chocolate gifting segment." "To mark the festive season starting with Rakhi, we have introduced bespoke gift packs featuring HERSHEY'S Kisses and HERSHEY'S Exotic Dark, supported by unique personalized experiences for consumers through AR, marketing campaigns and promotions on Amazon, Flipkart, Swiggy, and Blinkit. Through our core portfolio, gifting options, and new launches, we expect to drive category growth throughout the festive season," said Luigi Mirri, General Manager, Hershey India & APAC. Massive discount offer Companies are likely to offer increased year-on-year discounts this festive season. "Festive periods have led to a surge in smart TV sales, so we can say our expectations for this festive season are high. Consumers can anticipate some of the year's lowest prices, with discounts ranging from 15 per cent to 30 per cent. To secure the best deals, shoppers should plan their purchases during peak discount periods." "Additionally, there will be numerous combo offers, especially for consumer durables. For instance, purchasing a TV may come with attractive discounts when bundled with a washing machine, along with favourable exchange and bank discount offers," said Avneet Singh Marwah CEO of SPPL Exclusive brand licensee of Thomson in India Also read: FMCG industry betting on volume-led growth recovery in FY25 SHARE Copy linkEmailFacebookTwitterTelegramLinkedInWhatsAppReddit Published on August 11, 2024
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Indian FMCG and consumer durable companies are targeting a 40% growth during the upcoming festive season. The industry is optimistic about increased consumer spending despite economic challenges.
Industry Optimism Amidst Economic Challenges
As the festive season approaches in India, Fast-Moving Consumer Goods (FMCG) and consumer durable companies are setting ambitious targets, aiming for a substantial 40% growth
1
. This optimistic outlook comes despite the backdrop of economic uncertainties and inflationary pressures that have been affecting consumer spending patterns.Factors Driving Growth Expectations
Several factors are contributing to the industry's positive projections:
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Festive Season Boost: The festive period in India traditionally sees a surge in consumer spending, with many households making significant purchases during this time.
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Pent-up Demand: After periods of cautious spending, there's an anticipation of release in pent-up consumer demand.
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New Product Launches: Companies are planning to introduce new products and variants to attract consumers and drive sales.
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Rural Market Focus: Many FMCG players are increasing their focus on rural markets, which have shown resilience in recent times.
White Goods Sector Outlook
The white goods sector, which includes appliances like refrigerators, washing machines, and air conditioners, is also part of this growth target
2
. Manufacturers in this segment are banking on factors such as:-
Technological Advancements: New features and energy-efficient models are expected to drive consumer interest.
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Financing Options: Easy EMI schemes and cashback offers are being used to make high-value purchases more accessible.
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Urbanization: The continued trend of urbanization is expected to boost demand for household appliances.
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Challenges and Strategies
While the growth target is ambitious, companies are aware of the challenges:
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Inflation Concerns: Rising prices could impact consumer purchasing power, especially in non-essential categories.
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Supply Chain Issues: Global supply chain disruptions might affect product availability and pricing.
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Competition: Intense market competition could lead to price wars, potentially impacting profit margins.
To address these challenges, companies are adopting various strategies:
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Promotional Activities: Increased marketing and promotional efforts to capture consumer attention.
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Value Propositions: Offering better value-for-money products to attract price-sensitive consumers.
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Distribution Expansion: Strengthening distribution networks, especially in tier 2 and 3 cities.
Consumer Sentiment and Market Dynamics
The success of this growth target heavily relies on consumer sentiment. While there's optimism in the industry, actual consumer behavior will be influenced by various economic factors. The coming months will be crucial in determining whether the 40% growth target is achievable or overly ambitious in the current economic climate.
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