The consumer basket in India has been adversely affected due to the high food inflation and weak macro environment. Rise in cost of production, input cost inflation and positive demand supply gap are the main drivers. However, easing commodity prices is expected to ease margin woes of FMCG companies. Since it’s quite a challenge for the retail industry to evolve with the developing markets on its own, start-ups can be the bridge between the traditional players and the new-age market. Start-ups enable more job opportunities thus not only helping the economy, but they are also helping FMCG players to consolidate their positions in their respective segments.
This week’s edition of “Indian Retail at a glance” highlights How New age start-ups enabling FMCG players in a dynamic market? Are FMCG companies eyeing better margins ahead? & How FMCG companies could see margin recovery in second half of FY23?
New age start-ups enabling FMCG players in a dynamic market
As an economy, India is at a very interesting stage. While there’s so much that needs to be done, even as an emerging economy, India is already extremely self-sustainable in most fields be it retail, education, technology, pharmaceutical, etc.
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FMCG companies could see margin recovery in second half of FY23
Makers of fast-moving consumer goods (FMCG) could see recovery in the second half of the current financial year (2HFY23) as input cost pressures ease and rural demand makes a comeback.
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Are FMCG companies eyeing better margins ahead?
Prices of palm oil, wheat, edible oils and crude oil have corrected 20 to 50% in the past one month. This can largely be attributed to improved supply chain dynamics and tapered demand in global markets.
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FMCG volume down 0.6% during June quarter; rural recovers but urban markets fell 4.1%
Daily groceries and essentials consumers bought in the quarter ended June fell 0.6% in India, led by a steep fall in the urban markets even as demand in villages recovered.
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Selling tyres via kirana stores, CEAT on a roll
CEAT, the RPG Group flagship tyre company, has gone off the beaten track to take its products to the unreached. It may sound unthinkable to go buy a tyre from a shop stocking grocery, milk and FMCG products. But you could buy a CEAT tyre from such a shop.
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Rage Coffee’s Bharat Sethi on his learnings of building an omnichannel D2C FMCG brand
The Indian market has witnessed several startups bringing in innovative products in the D2C and FMCG segment.
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Marico's eyes Rs 500 cr biz from D2C brands over two years: Harsh Mariwala
Fast-moving consumer goods major Marico is aiming for business worth Rs 500 crore from its direct-to-consumer (D2C) brands in the next two years.
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