At FMCG box office, rural to script summer blockbuster
This is in sharp contrast to the last two years, when fast-moving consumer goods (FMCG) companies such as ITC, Dabur, Marico, Britannia, Parle Products, Emami and Hindustan Unilever had been focused mainly on premiumisation with demand turning sluggish in villages as the rise in prices of daily essentials, vegetables and fuel had forced consumers to cut down on spending. In the last two years, more than 60% of launches by large FMCG companies have been in the premium segment.
The companies are also investing in “consumer activation” efforts to increase engagement with rural buyers, the executives said. Apart from the expectations of an above-normal monsoon that could bolster farm incomes, companies are expecting policy measures in the July 23 budget to strengthen the revival of demand in rural India.
Dabur, maker of Real juice and Vatika shampoo, is adding close to 100,000 villages in the current fiscal year to the 122,000 it served in FY24.
Aspirational Rural Shoppers
The company is pushing Rs 10 packs across its portfolio of hair oils, shampoos and juices “to reap the benefits of improvement in rural consumer sentiment”, said Mohit Malhotra, chief executive of Dabur, which derives 48% of its Rs 9,100 crore annual sales from rural markets. “Alongside, we are expanding our product basket in rural markets with newer, affordable and rural-specific packs to push demand, and investing in consumer activations in the hinterland.”
Marico and Dabur had, in their June quarter pre-earnings updates, noted sequential
