Brakes on spending: Consumers begin value hunting in FMCG, automobiles

The emphasis, as most FMCG chief executive officers admit, is on essentials and away from discretionary categories

A revival in rural consumption, visible in fast-moving consumer goods (FMCG) and automobiles, is bringing with it a focus on cheaper models and packs, while income uncertainty in urban areas — created by extended lockdowns — is pushing consumers to be frugal. 

The emphasis, as most FMCG chief executive officers (CEOs) admit, is on essentials and away from discretionary categories. 

Automobile majors are pointing to a clear shift in buyers opting for entry-level models over premium variants. “Whenever times are tough, consumers do move to small packs and price points,” said Sanjiv Mehta, chairman and managing director, Hindustan Unilever (HUL),