It’s topsy-turvy for consumer-goods companies. The lockdown may force them to reconsider premiumisation as a primary growth strategy as consumers look beyond organised national brands and stock up on cheaper, essential products. Supply-chain disruption has given local brands the opportunity to make sales of a lifetime in some categories.
It’s topsy-turvy for consumer-goods companies. The lockdown may force them to reconsider premiumisation as a primary growth strategy as consumers look beyond organised national brands and stock up on cheaper, essential products. Supply-chain disruption has given local brands the opportunity to make sales of a lifetime in some categories.
Parle-G sales were up by 10%-15% two weeks ago and was up 25% last week from the average for March. As it is one of the most sold biscuit brands in India, distributors, stores, and e-commerce channels stock it well. However, for the first time, the biscuit went out of stock in several areas recently.
Nearly two years after Patanjali first reported a slowdown in its revenue growth rate, its struggles with managing the distribution continue. ET Prime’s conversations with its current and former distributors reveal that the company is losing ground to rivals in its staple segments — facewashes, ghee, honey, and even toothpastes.
To assess the state of India’s consumer economy, ET Prime partnered with peel-works, which works closely with corner stores. In the first part of the survey, we assessed how sales of basic consumer goods grew during the festive season. The bottom line: Certain geographical pockets and product categories have stayed resilient amid a slowdown, but there’s also increased pressure on working capital.
Is the slowdown severe enough for people to cut down on toothpaste, hair oil, noodles, or biscuits? Not yet. But the distributor has been hit hard, with credit channels drying up.
