Early festive cheer, World Cup effect lift consumption

livemint.com:

₹3 trillion, up from last year’s ₹2.5 trillion. September data on fast-moving consumer goods (FMCG) from retail technology platform Bizom indicated strong pre-festive stocking, especially in rural markets. Sales of FMCG were up nearly 5% in September versus a year ago; but down 2.3% year-on-year for the September quarter.

Quarterly sales growth was affected mainly on account of lower demand for branded commodities and beverages. Home care products saw an uptick in sales, while confectionary and packaged foods saw greater levels of stocking by retailers, according go Bizom. Cosmetics brand Sugar said early signs from Durga Puja buying have been encouraging; the brand expects the trend to continue through the rest of the season.

“The last three days in east India, where pujo shopping has started, have been phenomenal. We’re expecting this same festive rush to come for north and west over the next three weeks and for the south, it happens in November-December," Vineeta Singh, co-founder & CEO, Sugar Cosmetics said. On the durables side, analysts at Jefferies said demand for white goods in September improved from August.

“Channel checks indicate improving m-o-m demand over July-September (2023). 15th August sales saw good offtake. Most dealers are positive about the upcoming festive season.

Excess air-conditioner channel inventory has now been liquidated. Most other products carry normal inventories," they said, adding earlier months saw weak consumer sentiment. Kamal Nandi, business head and executive vice-president, Godrej Appliances, said Onam sales were good with premium segments such as AC and frost-free refrigerators doing well.