Dry August decreases large FMCG pack sales
FMCG) sector, reported TOI.
According to data from the retail intelligence platform Bizom, smaller product sizes have experienced a more rapid growth rate compared to medium or high-priced alternatives across most FMCG categories. The data revealed that overall sales decreased by approximately 11% in August 2023 compared to the previous year.
The rain deficit in August appears to be fuelling the downtrading phenomenon, said Akshay D’Souza, Bizom’s chief of growth and insights.
Procter & Gamble Hygiene and Health Care’s VP (finance) Gautam Kamath said, “Retail inflation for the months of July and August have averaged 7% and August rainfall has shown an 11% negative deviation from norm, driving the caution.
On anecdotal evidence, September rainfall appears to have bounced back — and might have a big say in how the rest of the year goes.” He told analysts that P&G is “cautiously optimistic” in its outlook on market growth.
Typically, large FMCG companies offer products at different price levels to ensure consumers stay within the company’s product basket.
At P&G’s first investor meet held recently, MD L V Vaidyanathan said the company continues to raise the bar on superiority in all price tiers where it competes. “We are leveraging this superiority to grow markets and, as a result, P&G’s share to sustainably build the business.
