FMCG, retail stand poles apart in Q3 amid ongoing economic slowdown

Outlook for staples bleak, discretionary confident

Companies selling everyday household items and discretionary products have differing points of view on performance of their categories in the October-December (Q3) period. 

While the outlook remains bleak for staples or fast-moving consumer goods (FMCG) owing to unseasonal rains and slowdown in rural areas, consumer discretionary companies like multiplex players, food service operators, and fashion retailers remain confident.

Mohit Malhotra, chief executive officer, Dabur India, said, “This seems to be a long and protracted slowdown. Consumer incomes have gone down. There is a severe liquidity crunch in the market, coupled with unseasonal rains that have impacted farm incomes.” 

Malhotra was speaking to analysts