Contrary to popular belief, FMCG sales data may not be the most accurate indicator of consumer demand, especially in rural India. A staggering 80% of India's population continues to consume unbranded consumer goods, particularly in categories such as food grains, oil, groceries, and certain personal care items, as per a recent report by the Confederation of All India Traders (CAIT). This significant portion of consumption is not captured in the FMCG growth metrics that economists typically use to assess consumer demand trends.
Consider this: the rice you buy from your local kirana store or the spices sold in loose quantities do not get counted in the official FMCG sales data. These everyday transactions, which represent the lifeline of rural and small-town economies, are missed in quarterly FMCG growth reports. This creates a substantial blind spot in our understanding of true consumer behavior and market dynamics.
Looking at the latest Q2 FMCG numbers, we observe a mixed bag. The sector recorded a modest 3.8% increase in volume growth, down from the 7.5% growth seen last year. Value growth also softened to 4% from the previous 12.2%. Interestingly, while rural areas showed a 5.2% increase in volume, urban growth lagged behind at 2.8%. This data might suggest a slowdown, yet there's still considerable expansion from previous quarters. But here lies the challenge: it's difficult to determine how much of this expansion stems from genuine consumption growth versus market share gains from unbranded players.
The prevalence of unbranded products varies significantly across categories. For instance, in washing cakes/bars, unbranded products are estimated to account for over 70% of the market. Tea follows with over 40%, while salt stands at over 25%. These figures illustrate the massive scale of unbranded consumption that flies under the radar of official data.
Moreover, banks have reported increasing stress in agricultural loans over the last few months. This financial strain, exacerbated by a severe heatwave and other adverse weather events, has impacted incomes, pushing the unemployment rate up to 9.2% in June. These hardships have, in turn, limited consumer spending. Yet, this reduction in spending power is not fully reflected in FMCG sales data, particularly as leading FMCG brands have recently cut prices, capturing more market share from unbranded goods.
Without an official indicator to track unbranded sales, our view of India's consumption picture remains clouded. To truly understand the pulse of the Indian economy, we must consider both branded and unbranded consumption to get a holistic view of consumer behavior.
#ConsumerProducts #IndianEconomy #FMCG #RuralIndia #UnbrandedGoods #EconomicGrowth #RetailInsights #Banks #AgriLoans #Consumption
*Also see https://t.co/Vrqp6ROv3J
Congress should also be ready to fight alone in Bihar.
Now the time has come when Kanhaiya Kumar & Pappu Yadav should be given command.
Take some decisions ✊
I strongly condemn the celebration of Hindi Month valedictory function along with the Golden Jubilee celebrations of Chennai Doordarshan.
Hon’ble @PMOIndia,
The Constitution of India does not grant national language status to any language. In a multilingual nation, celebrating Hindi Month in non-Hindi speaking states is seen as an attempt to belittle other languages.
Therefore, I suggest that holding such Hindi-oriented events in non-Hindi speaking states could be avoided, and instead, the celebration of the local language month in the respective states should be encouraged.
சென்னை தொலைக்காட்சியின் பொன்விழா நிகழ்ச்சிகளுடன் இந்தி மாத நிறைவு விழா கொண்டாடப்படுவதற்குக் கண்டனத்தைத் தெரிவித்துக் கொள்கிறேன்.
மாண்புமிகு @PMOIndia,
நாட்டின் தேசிய மொழி என்று அரசியலமைப்புச் சட்டம் எந்த மொழியையும் வரையறுக்கவில்லை.
பன்மொழிகள் நிறைந்த இந்திய நாட்டில், இந்திக்கு மட்டும் முக்கியத்துவம் அளித்து, அதனை மட்டும் கொண்டாடுவது பிற மொழிகளைச் சிறுமைப்படுத்துவதாகும்.
இந்தியை மட்டும் தலையில் தூக்கி வைத்துக் கொண்டாடுவதை நிறுத்திவிட்டு, செம்மொழித் தகுதி பெற்ற அத்தனை மொழிகளையும் கொண்டாட வேண்டும்; நாட்டின் பன்முகத்தன்மையைப் போற்ற வேண்டும்!
#StopHindiImposition
People whose diet is primarily cereal and millet (bag) dependent devoid of steaks, 🥩 kababs, prawn 🦐 masala etc. calling everyone else ‘rice bag convert’ is as bizarre as them calling animal source foods ‘impure’
Looks like they evolved (or failed to ) upside down.
#WATCH | Gujarat | Some unknown person opened the fish plate and some keys from the UP line track and put them on the same track near Kim railway station after which the train movement was stopped. Soon the train service started on the line: Western railway, Vadodara Division
Heartbreaking news from EY Pune - a young CA succumbed to the work pressure and nobody from EY even attended her funeral - this is so appalling and nasty!!!
Mysore Sandal Soap ⭐️⭐️⭐️⭐️⭐️, one of the best products of Karnataka with Sharabha as logo, nourishes skin and removes tan, gives you glow.
Have you used it?
Do you know Sharabha?
Some people (mostly oppressor caste folk) consider alcohol as 'non-veg', but actually its pure veg - coz its derived mostly from fruits, vegetables and grains.
Thank you.