THAT TUMBLING FEELING
Outlook Business|March 2024
India’s FMCG giants are struggling with sluggish growth. Declining sales and tough competition from local brands have dampened the sentiments around many popular legacy brands. Can the marquee names rev up a new growth engine? 
Ayyan Kartik
THAT TUMBLING FEELING
 

The signs are worrying. No wonder marketing honchos of some of the biggest fast-moving consumer goods (FMCG) companies are burning the midnight oil. Not only has growth in demand for their products in the hinterland been sluggish, consumers are opting for local brands. 

Bharat Bhushan, who runs a retail store in Dhuri, a small town in the Sangrur district of Punjab, says that he has observed a strong demand for local FMCG products. What would generally be seen as a local isolated phenomenon is now being reported as a national trend. 

The new year could not have started on a more tepid note for Hindustan Unilever (HUL), ITC, Britannia, Godrej Consumer Products and Marico among others. When the country’s largest FMCG brand HUL announced its result for the last three months of 2023, the trend was clear. Despite the quarter having multiple festivals, the volume growth of the company remained tepid at 2% and sales declined by 0.3%. 

A similar story played out at ITC which saw its cigarettes volume decline 2% in the third quarter of 2023–24 while Marico reported a listless 2% growth in volume. Overall, the volume growth across several top brands has remained near stagnant in the past two years. This prolonged slowdown has clearly dampened the sentiment of investors. 

In less than two months into 2024, HUL has seen its share price drop by nearly 10%, ITC’s scrip has dropped by 13% and Marico’s shares have seen a decline of over 3%.  

The companies’ leadership, analysts and observers agree on the need for a sustained growth recovery to boost sentiments. While the factors which have dragged down growth may appear transitory in nature, there are indications that top brands are recalibrating their strategies to find a new growth engine which can drive investor trust back.  

Double Whammy 

この記事は Outlook Business の March 2024 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

この記事は Outlook Business の March 2024 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

OUTLOOK BUSINESSのその他の記事すべて表示
'Automation is Redefining Efficiency and Precision in Jewellery Manufacturing'
Outlook Business

'Automation is Redefining Efficiency and Precision in Jewellery Manufacturing'

Increasing brand consciousness and awareness among consumers is helping expand the organised jewellery retail industry. MP Ahammed, chairman of Malabar Group, discusses prominent trends in the jewellery industry

time-read
1 min  |
November 2024
BATTLE TO WIN THE AI RACE
Outlook Business

BATTLE TO WIN THE AI RACE

In Supremacy, Parmy Olson tells the astonishing and behind-the-scenes story of the battle between the world’s two leading artificial intelligence firms, OpenAl and DeepMind and the continuing rivalry of its founders Sam Altman and Demis Hassabis respectively

time-read
5 分  |
November 2024
A LEADER WHO EMPOWERS
Outlook Business

A LEADER WHO EMPOWERS

Anshul Arzare, MD and CEO of YES SECURITIES, wants to ensure a workplace where employees not only contribute to the company's vision but also feel content

time-read
2 分  |
November 2024
EV Unplugged
Outlook Business

EV Unplugged

Electric vehicles are crucial to India’s climate change plan. But reliance on China for imports and technology constraints remain hurdles the sector needs to overcome

time-read
6 分  |
November 2024
Every Lamborghini Owner is a Brand Ambassador
Outlook Business

Every Lamborghini Owner is a Brand Ambassador

Regional director of Automobili Lamborghini, Francesco Scardaoni, talks to Prachi Khanna about the brand’s approach to fostering a sense of community among its vehicle owners. Edited excerpts

time-read
3 分  |
November 2024
NO ZEST FOR ZED
Outlook Business

NO ZEST FOR ZED

A government initiative to green MSMEs is not finding enough takers

time-read
4 分  |
November 2024
SMALL PLANTS, BIG TROUBLE
Outlook Business

SMALL PLANTS, BIG TROUBLE

Climate-triggered stress is placing an unprecedented burden on small businesses. But a lack of access to climate aid hinders the sector's ability to adopt greener methods

time-read
6 分  |
November 2024
'We Think About the Rider More Than Any Other Company
Outlook Business

'We Think About the Rider More Than Any Other Company

Rapido co-founder Aravind Sanka talks to Neeraj Thakur and Deepsekhar Choudhury about how flexibility and fair pay helped his company disrupt the Ola-Uber duopoly. Edited excerpts

time-read
3 分  |
November 2024
LABOUR PANGS
Outlook Business

LABOUR PANGS

Rising cost of living in a fast-growing economy is making workers restless

time-read
5 分  |
November 2024
'Hustle is No Virtue'
Outlook Business

'Hustle is No Virtue'

It has become fashionable to talk about the verb “hustle” these days, especially in professional settings.

time-read
3 分  |
November 2024