The signs are worrying. No wonder marketing honchos of some of the biggest fast-moving consumer goods (FMCG) companies are burning the midnight oil. Not only has growth in demand for their products in the hinterland been sluggish, consumers are opting for local brands.
Bharat Bhushan, who runs a retail store in Dhuri, a small town in the Sangrur district of Punjab, says that he has observed a strong demand for local FMCG products. What would generally be seen as a local isolated phenomenon is now being reported as a national trend.
The new year could not have started on a more tepid note for Hindustan Unilever (HUL), ITC, Britannia, Godrej Consumer Products and Marico among others. When the country’s largest FMCG brand HUL announced its result for the last three months of 2023, the trend was clear. Despite the quarter having multiple festivals, the volume growth of the company remained tepid at 2% and sales declined by 0.3%.
A similar story played out at ITC which saw its cigarettes volume decline 2% in the third quarter of 2023–24 while Marico reported a listless 2% growth in volume. Overall, the volume growth across several top brands has remained near stagnant in the past two years. This prolonged slowdown has clearly dampened the sentiment of investors.
In less than two months into 2024, HUL has seen its share price drop by nearly 10%, ITC’s scrip has dropped by 13% and Marico’s shares have seen a decline of over 3%.
The companies’ leadership, analysts and observers agree on the need for a sustained growth recovery to boost sentiments. While the factors which have dragged down growth may appear transitory in nature, there are indications that top brands are recalibrating their strategies to find a new growth engine which can drive investor trust back.
Double Whammy
Esta historia es de la edición March 2024 de Outlook Business.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición March 2024 de Outlook Business.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor? Conectar
The Faultline Called Unemployment
With youths accounting for a staggering majority of the unemployed population in India, the ruling Bharatiya Janata Party, which claims to have put India on a sound growth track, has some tough questions to answer as it seeks a third term at the Centre
'TECH, GOVERNMENT SUPPORT DRIVING GROWTH IN INDIA'S EXPORTS'
As overall exports in India witnessed a rise over the previous year, Akshay Ghulati, co-founder of Strategy and Global Expansion at Shiprocket Global, talks about five drivers of booming trade in India
IN THE RIGHT ENSEMBLE
Manish Kapoor MD and CEO of global clothing brand Pepe Jeans London, finds happiness in spending time with his family and bonding with them over leisure trips, Formula One races, cricket matches and cooking
GREEN GLOBETROTTING
Amid growing awareness about sustainable tourism, more people are hoping to reduce their carbon footprint. Besides benefitting the planet, sustainable tourism also presents the industry with the opportunity to grow responsibly
LOOPM ALTERNATIVES: ADDING A NEW AND LASTING DIMENSION TO PRESERVING FOOD
LoopFresh, an Indian innovation promises to transform the way perishables are stored on our supermarket shelves to retain their freshness.
PLANET VS PLASTIC OR PLASTIC VS SUBSTITUTES?
The theme of Earth Day 2024 was Planet vs Plastic, but plastic industry stakeholders are armed with studies to find faults with its alternatives
WELSPUN LIVING LIMITED: MAKING STRIDES TOWARDS GREENER FUTURE
Striving to advance systematically on the path of sustainable development, Welspun, a global leader in home solutions, is making a mark with its holistic Environmental, Social, and Governance (ESG) approach towards well-being of all the stakeholders
PROMOTING BIOFUELS FOR SUSTAINABLE ENERGY SUPPLY
Biofuels offer a viable solution to reducing dependence on imported fossil fuel while providing cleaner energy, states Kishan Karunakaran, CEO of Buyofuel. In an interview he speaks about how agro-waste and even plastics and tyres can be utilised for producing biofuels, thus supporting a circular economy.
A Ready Reckoner for Climate Justice
In Climate Change: The Policy, Law, and Practice, Jatinder Cheema presents a comprehensive exploration of the multifaceted challenges posed by climate change and the corresponding policy, legal and practical responses needed to address this global crisis effectively
TETRA PAK'S AMBITION TO LEAD THE SUSTAINABILITY TRANSFORMATION
Tetra Pak has set 2030 net zero emission goals for itself and 2050 net Zero emission goals for its supply chain. Juhi Gupta, Director Sustainability Tetra Pak, South Asia, in an interview shares how this is being achieved. Excerpts:
