While FMCG companies continue to face slowdown woes, the upcoming festive season is expected to bring some relief to these companies.
While FMCG companies continue to face slowdown woes, the upcoming festive season is expected to bring some relief to these companies. As the country gears up for festive season starting October, FMCG companies are likely to witness better sales, according to Nielsen. “We are expecting the festive season to start picking up. October will have a bunch of festive events going on and we do expect Q4 or the October-December quarter to have better sales,” Prasun Basu, President, South Asia, Nielsen told CNBC TV-18 in an interview. However, it is not just the festive sales euphoria that will provide respite to fast-moving consumer goods companies. According to Prasun Basu, the consumer strengthening and picking up of demand will continue beyond the festive season i.e, to the end of the year. “Hopefully the manufacturers would have a bit more bullishness to really push through innovation, trade and distribution,” he told the news channel.
Festive season to lever sales
According to the latest survey by LocalCircles, while consumers were holding back on discretionary spending in the last few months, they are going to be in the market for the festive season. According to half of the respondents, they held back on discretionary expenditure like shopping, eating out, movies etc in August and September as well. Over one-third of those surveyed also said that they plan to spend over Rs 10,000 this festive season while 17% also said that they don’t plan to spend at all. “With all the slowdown news around, these numbers seem to be the silver lining suggesting that many consumers may be back in the market in the month of October,” LocalCircles said.
Consumers seek online platforms for better discounts
While retail is still the preferred method for customers to buy durables including refrigerators, televisions etc, about 27% of respondents said that they will shop from e-commerce platforms. “This may be due to the fact that with the slowdown, increased number of consumers feel that they may get a better bargain online as compared to retail stores,” according to the survey.