While FMCG companies have increasingly relied on the rural hinterland, home to more than 800 million people, the market contributes just 36% of the overall industry sales despite having over two-thirds of India’s consumer base. That could change now, say companies.
MUMBAI/KOLKATA: Consumer goods companies expect rural markets to drive sales volumes, perhaps disproportionately, over the next few months as millions of migrant workers from locked down cities return to their upcountry homes.
While FMCG companies have increasingly relied on the rural hinterland, home to more than 800 million people, the market contributes just 36% of the overall industry sales despite having over two-thirds of India’s consumer base.
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That could change now, say companies.
“Several of them may not return to cities even after complete relaxation of lockdown hoping for employment opportunities created by the state governments. While their incomes could fall, daily essentials and groceries will still be a priority for them compared to big-ticket items,” said B Krishna Rao, senior category head at Parle Products, the country’s leading cookies maker.
Source: Economic Times
