Nestle, Amul and CG Corp have decided to focus on the channel
While most research houses believe improvement in rural demand augurs well, a few leading names such as Morgan Stanley have recently turned cautious
Modern wholesale trade in packaged consumer goods in India is pegged at Rs 6,800 crore in 2015, according to a study by Nielsen. It remains at 2.6 per cent of the total Rs 2,61,500-crore packaged consumer goods market in India. The trade format is yet to attract retailers in the country as only three per cent of retail manufacturers leverage the wholesale channel, the study found. The top 10 manufacturers account for 60 per cent of the total value of sales. In contrast, the top 10 manufacturers account only for 38 per cent of the total retail sales. During the first half of 2016, the channel posted 13 per cent value growth and reported Rs 3,770 crore in sales compared to same period last year. Soft drinks dominate the channel in terms of value with 12 per cent share. Non-food categories such as toilet soaps (nine per cent) and washing powder (eight per cent) currently hold the second and third spots, respectively. "This shows different dynamics than traditional retail, where soft drink
Of the nine large FMCG companies in the sample study, two companies have witnessed a lower volume growth number as compared to the past three to four quarters
Urban spending muted, rural sales grow on low base: Nielsen
Retailers complain of poor fill rates; company sprucing up supply chain, storage
Nifty FMCG index was up 2.2% as compared to 0.16% gain in the Nifty 50 index at 01:08 pm.
HUL, Britannia, Nestle & McDonald's have gingerly started hiking prices
Brand experts say as consumption of branded goods grows in India, reaching the Rs 100-crore mark in a short span will become easier
56% of multinational brands have improved their y-o-y ranking, compared with only 47% local or home-grown brands
Factors other than monsoon play a much bigger role in driving consumption growth
Sales of refrigerators were higher this year versus last year
Analysts said price hikes were imminent because the deflationary environment had wiped out top line growth for FMCG companies in 2015-16
According to the Boston Consulting Group, FMCG companies need to expand their distribution to beat the slowdown
Rising popularity and competitive intensity from the likes of Patanjali are emerging threats to listed fast-moving consumer goods (FMCG) companies. The actual impact will depend on factors such as market position, extent of product or category overlap, each company's strategy on pricing, product and promotions as well as on the aggression of the Guru businesses.While Patanjali is strong in three segments at present - cow's ghee, toothpaste and hair oils - companies and analysts are taking note of the emerging scenario. Smaller companies with insignificant presence in certain categories, however, are more at risk, analysts say. "New product trials have boosted Patanjali's growth; trends in repeat purchases will be key. We see dominant players in a segment to be better placed than others," says Aditya Mathur, FMCG analyst at Citigroup.Nevertheless, there is a need for incumbents to up the ante. The reasons are there to see. While Colgate has maintained its leadership position over the ye
Twin explosions rocked the main hall of Brussels Airport today killing at least one person and wounding several others
FMCG majors ITC and HUL were the top gainers on hopes that release of salaries and pensions to govt employees may boost consumption
After HUL, Pepsi, Nestle, Mondelez steps up association with media & entertainment
Ravi Shankar mulls taking his products, available at 600 outlets, to 2,500 stores by 2017; others have plans, too
Move comes at a time when rural areas have suffered consecutive years of drought and unseasonal weather