November witnessed a 7.5% decline in orders placed by kiranas, the cornerstones of fast-moving consumer goods (FMCG) sales, compared to the previous year. This drop has been attributed to an oversupply of inventory from pre-Diwali orders, which failed to stir sufficient demand, especially in rural areas. Data analysed by Bizom, based on orders from nearly 7.5 million kirana stores, revealed a 3.5% decrease in orders compared to the previous month, October.
Sushil Kumar Bajpai, the president of RSPL Group, which produces Ghari detergent and Venus soap, addressed the demanding state of consumer demand. He highlighted that the previous month’s decline might have been influenced by uncertainties in consumer sentiment, particularly in states preparing for elections. Bajpai emphasised that the path to recovery depends on noticeable enhancements in rural markets.
FMCG companies had previously observed a steady decline in rural markets, which temporarily halted in the September quarter. However, a combination of inadequate rainfall followed by a surge in food prices hampered the latter part of the quarter. Akshay D’Souza, Chief of Growth and Insights at Mobisy Technologies, which owns Bizom, outlined projections for the winter season. He expects an increase in the stocking of items like skin creams, heaters, and hot beverages in stores as the colder temperatures prompt consumers to purchase these products.
