Surge in Q2 FMCG, phone, car sales may bring festive cheer
Sales of fast-moving consumer goods (FMCG), cars, smartphones, and household appliances surged in the September quarter, both sequentially and year-on-year, company executives told ET.
Lower inflation, improved monsoon, fall in prices and offers given by companies to pass on the benefits of lower input costs lifted consumer sentiment.
Passenger vehicle makers ended September with the best-ever quarter, clocking record sales.
Chief executives said the consumption boost in the September quarter is a sign that the festive season may go well. Festive season accounts for as much as 30-40% of sales in categories such as passenger vehicles, smartphones, televisions, and appliances.
The FMCG market grew 8-12% from a year ago in the September quarter by value, as per data from companies, boosted by a revival in rural demand and price cuts in several categories.
Rural sentiment has improved as the monsoon revived in September and ended the year at near normal, companies said.
A report by Centrum, which hosted a FMCG dealer-distributor conference last week, said rural India has been on a path of slow but steady recovery. «Distributors opined though beauty and personal care categories saw marginal uptick in demand, yet detergents and foods categories fared well,» it said.
Mass segment yet to see recovery
«The rural consumers continue to prefer purchasing smaller packs amid companies taking some price cuts in response to waning inflationary pressures,» the report said.
FMCG sales had nosedived from the second half of calendar 2021 as high inflation and Covid-related economic woes dented demand.
Recovery began in the March quarter, progressed in April-June, and continued in the September quarter.
Auto companies sold 1,070,377
