Festivities push FMCG sales up 11% in first two weeks of October

Sales were down in September due to weak rural demand

Fast-moving consumer goods sales rose 11 per cent in the first two weeks of October, compared to the first two weeks of September. The surge was largely due to the festive season kicking in, shows data by Bizom, a retail intelligence platform.

The revival in consumption comes after September FMCG sales declined 9.6 per cent due to muted rural demand.

The 12 per cent month-on-month drop in the number of running kirana stores in the first half of October was compensated by stocking at mom-and-pop outlets, which increased by 26 per cent on average.

“We did see strong FMCG sales growth earlier in August, with celebrations of Ganesh Chaturthi, Raksha Bandhan, Janmashtami and Independence Day and we're seeing it again now in the Navratri/Durga puja season,” said Akshay D’Souza, chief of growth and insight at Bizom.

Bizom data also showed high double-digit growth in commodities (packaged wheat flour, rice, edible oil, etc) as consumers stocked up for increased consumption driven by a rise in social interactions.

In confectionery and packaged foods, there was a rise in stocking of gift packs in kirana shelves, leading to a mid to high single-digit rise in sales.

“After having seen trends of revenge shopping and revenge tourism earlier, it does seem like we're in the midst of revenge festivities right now,” said D’Souza.

"The onset of festive season marks the increased demand and sales of FMCG and personal care products and the festive period adds more than 56 per cent to our total annual revenue. "said Sunil Agarwal, chairman, RSH Global which houses brands such as Joy Personal Care, X-Men and Karis Naturals.

Additionally, the upcoming winter season also triggers spending on products of personal care and indulgence. "We are targeting more than 30 per cent growth this festive season," said Agarwal.