Certain FMCG sectors may face tampering of growth: Deloitte report

Certain sectors including beauty products, personal care, consumer electronics and consumer durables may face a tempering of growth, according to a report from consulting firm Deloitte.

The decline is on account of the high volume of purchases post-pandemic that have created a high base for FY25, according to Deloitte's Future of Retail report.

The report also highlighted a significant shift in consumer spending patterns with a rise in value-seeking buyers, which is evident across consumer businesses.

While the consumer may increase their spending on leisure activities, suggesting a good performance for the aviation and hotel industries in FY202425, it added.

Yet the growth in premium products has outpaced entry-level products in several sectors, including electronics and personal care. Companies will benefit from understanding the preferences of their customers for premium products and using them to drive growth, it said.

Based on the survey, the report said a large section of customers across sectors reported that replacement purchases would be a significant driver for purchases in FY25.

It has suggested the companies capitalise on this trend to retain their loyal customer base and encourage replacements where product performance or perceived value of products is expected to improve by replacement or upgrades.

The report further said Indian retailers can achieve an incremental growth of between 8-20 per cent by sweating their investments in customer, product, channel and experience despite a plateauing demand scenario.

The key challenge and opportunity for retailers would be to grow like-for-like businesses by maximising the potential of existing assets and investments. In our experience, through the execution of the right interventions, businesses can achieve incremental like-forlike growth ranging between 8 to 20%, it said.