Urban poor remain a worry for FMCG companies; unlock brings hope

According to experts, half of urban sal­es or 30 per cent of total sales comes fr­om the urban poor, especially for food firms.

As the second wave of the pandemic ebbs and the daily caseload falls, the struggles of the urban poor ha­ve come into focus. Many have su­f­f­ered income and job losses after two su­c­c­­e­­ssive waves. The second wave, in pa­­­r­t­icular, has seen the poor being hit hard on account of lack of medical and financial help.

For the fast-moving consumer goods (FMCG) companies this has meant that an important segment is under severe distress. To put things in perspective, urban areas contribute 60-65 per cent to an FMCG firms’ total sales. The rest 35-40 per cent comes from rural areas, acco­rding to