The FMCG slowdown in Q2’20 saw a value decline of 19% as compared to the same period of 2019. This was fueled by massive disruptions in the production and supply chain, and low consumer confidence.
The unlock from Q3’20, saw a revival in the industry with a growth of 1.6% versus a year ago. The revival was aided by businesses opening up with the pandemic reaching stable levels. Markets started opening up in a phase-wise manner and store closures came down to an average of 3 days a month in Q3’20 from an average of 9 days a month in Q2’20. After being cooped at home for a long time, consumers also started looking at resuming normal consumption levels.
PRODUCT DYNAMICS
Staples Continues To Drive Growth: Personal Care & Home Care Move Towards Revival
With the opening of the economy all baskets showed signs of recovery, albeit with some clear changes reflecting consumers’ product preferences. Consumers prioritized spending on essential foods during the locked down quarter and with the unlock quarter this accelerated to double digit growth.
Source: India Retailing
