Affect of items in excessive worth FMCG gross sales – Occasions of India

MUMBAI: The downward trend in FMCG came to a brief respite in October as consumers turned to higher-priced packs in three of the six categories due to Diwali festivities.
Downtrading – when consumers move from larger packs to smaller packs in a category – is visible in many categories this year. However, the situation changed in October, even if temporarily.
According to BizomIt is a platform that automates retail execution at 7.5 million kirana stores, with customers purchasing higher value packs of branded items as prices remain low. Consumption also increased during Diwali due to sweet and salty preparations. On a month-on-month (MoM) basis, high-value packs of branded goods grew by 4.6% in October.

On the other hand, an increase in the contribution of gift packs boosted higher-value packs in confectionery, which recorded a growth of 5.5% MoM in pack size, while packaged foods grew by 2.1%.
Sales of low-unit value packs in commodities, confectionery and packaged foods declined -1.5%, -7.9% and -3.5%, respectively, as consumers turned to higher-value packs.
Akshay D’Souza, head of growth and insights at Bizom, said the upgrade is being driven by increased consumption due to festive demand for Diwali. “It is unlikely that this will continue next month as repeat purchases may be based on lower estimates of non-festive, domestic consumption,” he said.
“For the rest of November, we will see a slight mismatch in terms of stocking and actual consumption at the store level, leading to an increase in inventory days. This will lead to many brands offering stronger discounts and schemes to ensure that stocks are replenished .Stores and restocking can happen quickly,” D’Souza said.
Mayank ShahParle Products senior category head said that traditionally, there is a surge in large-pack grocery purchases during Diwali, given the meet-and-greets that follow such festivals. “With modern trade and other retailers offering discounts on high-value packs, there is a trend for more consumers to buy these pack sizes, especially during Diwali. Many people continue to buy high-value packs even after Diwali. Although the total volume of high-value packs increases significantly during Diwali, the contribution of Diwali to total sales will not be that significant because every year, more families are turning to buying high-value packs. ,” Shah said.
However, personal care is still under stress as consumer spending in this category remains slow.