Nielsen data indicated that restrained spending during lockdown is enabling consumers to prioritise spending on categories to improve quality of living at home.
In the home cooking basket, ketchups, jams, cheese, milk powders, etc are gaining prominence and seeing increased innovation in the market
Categories like toothpaste, shampoos and hair oils that witnessed rationalisation in the lockdown period bounced back in June
Only evolved hygiene products like hand sanitisers and floor cleaners continued to grow in lockdown phase .
In the Jan-Mar 2020 period, India’s FMCG industry grew at 6.3 percent across traditional trade, modern trade and e-commerce as against 7 percent in the previous quarter, the research firm said.
Around 22 percent consumers found ready to eat (noodles,upma) out of stock. A similar percentage of customers did not find salty snacks.
A survey with top industry leaders conducted by Nielsen revealed that supply chain and mobility issues have emerged as the biggest industry concern in the FMCG and retail space
"In 11 states, we have witnessed more than 40 percent growth compared to a year-ago period," said Sameer Shukla, West Market Leader, Nielsen Global Connect, South Asia.
FMCG companies refused to comment on this trend, claiming silent period ahead of the quarterly result season.
The FMCG research firm Nielsen has maintained the full year 2020 growth forecast at 9-10 percent.
Nielsen India launched E-Trak Index - a measurement solution that tracks the FMCG E-Comm industry
In November too, there have been huge advertisements of after-Diwali offers by retailers such as Big Bazaar, Spencer and Reliance Fresh
The rural market grew at 5 percent in July-September (Q3) of 2019, which is one-fourth as compared to 20 percent growth in Q3 of 2018.
FMCG industry had clocked 13.8 percent growth in 2018.
The rationale behind Nielsen pegging a double-digit forecast is growth in GDP, boost to rural income, uptrend in private consumption and increase in consumer confidence.
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In rural consumption, there is still some story around it wherein overall rural FMCG consumption continues to grow at about 12.5 percent, says Vijay Udasi, ED at Nielsen India.
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Extensions of existing fast-moving consumer goods (FMCG) brands are five times more successful than launching a new brand in India, according to a study by Nielsen India.
Consumer confidence in India has declined for the first time in nine quarters due to weak employment sentiment and subdued spending behaviour, according to Nielsen global consumer confidence index released today.
Despite a market of 100 million people across 400 towns, FMCG companies have not managed to tap fully, says a report by information and measurement company Nielsen.