Daily groceries and essential goods sales rose 1.1% in September, reversing the trend from the previous month, falling 14.5%, according to Bizom, which tracks 7.5 million retail stores nationwide. The month-on-month growth was mainly driven by commodities after kiranas stocked more staples and edible oils on anticipation of strong festive demand.
Even on a year-on-year basis, there has been an increase in categories in September. According to Bizom, FMCG Sales increased by 29.7%. For appliances, the sales volume growth has been 2-3%, given that pentup demand continued in September last year, industry estimates.
Volume growth for smartphones is 4-5%. In 2020, new iPhones were launched later in October. The year-on-year price increase for electronics and smartphones in September will be higher due to 10-15% price hike as a reason.
Driven by sales during Ganesh Chaturthi and Durga Puja shopping, home appliances have seen volume growth of 5-8% in August, according to industry estimates, with companies launching early promotional offers, even as sales in the north of Shradh There was silence because of the period. The companies said the growth could have been more if not for the lack of product. Smartphone retailers said September was better than August, including premium models such as Apple’s iPhone 13 series and Samsung’s Galaxy Fold and Flip handsets.
‘Supply chain disruption on mind’
Adani Wilmar chief executive Angshu Malik said that in fast-growing consumer goods, the demand was led by both hotels, restaurants and caterers as well as end consumers, as September is a time when they are expected to last two months. Overstock for the festive season. Which is the owner of Fortune and Aadhar brands.
“Consumers also fear that there may be a supply chain disruption or stockpiling of these essentials and they may load their pantry early, resulting in a slowdown in November as well,” he added.
While growth in personal care and packaged foods fell 7% and 5% respectively, experts said increased social interaction during the festive season could boost sales in these sectors.
Akshay D’Souza, Head of Development and Insights, Mobisi Technologies, said, “The containment measures imposed by local state administrations during festivals will be crucial to boost consumption of FMCG as India works hard between celebrating festivals and controlling the pandemic. ” , adding that there has been an increase in confectionery and beverages due to gift pack stocking.
positive indicator
The CEO said that consumers are looking forward to the big sale of the festive season in October. He added that Amazon and Flipkart, unlike previous years, will be launched only later this week, and all indicators are positive for good sales in the next two months. This is despite price hikes across categories like electronics, laptops and smartphones.
Kamal Nandi said, “Consumer sentiment, macroeconomic indicators are good, so are Covid indicators because of high vaccination, low infection rate. The chances of a third wave affecting the economy are slim. So, recovery in September is good for the festive season. Is.” Business Head, Godrej Appliances.
Deepak Bansal, vice president of corporate planning, India’s largest white goods maker LG Electronics, said the price hike was higher than in September.
“On a year-over-year basis, we grew sales by 10% due to more premium products and price increases,” he said.