The report also added that festive seasons and peak shopping periods remain key for both the FMCG and technology durables sectors. | Representative image
India is the only country in the Asia-Pacific region where FMCG and technology durables sales from modern retail channels are consistently registering double-digit growth, helped by premiumisation and festive period sales, data analytics firm NielsenIQ said in a report.
India holds a dominant position in the Asia Pacific region in modern trade sales, with the premium plus price segment accounting for nearly 40 per cent of FMCG sales and 30 per cent of technology durables sales, according to the report findings.
“India emerges as the only market to consistently deliver double-digit growth across both FMCG, technology and durables sectors, underscoring the resilience and changing preferences of Indian consumers,” said the NielsenIQ report titled ‘A Complete View of Modern Retail Trends’.
Although online channels continue to grow rapidly in India, modern retail channels remain the preferred channel, he added.
Modern trade involves the sale of goods through large, organized stores such as supermarkets, hypermarkets, department stores and mini-markets.
The latest data reveals a 2 per cent growth in FMCG sales and 4 per cent growth in technology durables from modern retail channels on a MAT (rolling annual total) basis in March 2024.
“Despite inflationary pressures, modern trade has shown resilience, with double-digit volume growth continuing regardless of price fluctuations. Interestingly, there is a growing preference for products with premium plus pricing, accounting for approximately 40 percent of FMCG sales and 30 percent of durable technology sales, both experiencing significant growth,” he noted.
The report also added that festive seasons and peak shopping periods remain key for both the FMCG and technology durables sectors.
These periods “account for 20 percent of incremental FMCG sales and 60 percent of technological durables. Non-food categories, in particular, grew 1.8 times faster than food during these periods, driven by deep discounts and consumer preference for non-essential products,” he added.
It also highlights the challenges facing large companies, from small manufacturers to private labels and retailers that are gaining ground.
“Private labels are growing at a rate 1.5 times faster than large manufacturers, especially in the general price segment. Small players, on the other hand, are driving 70 percent of new launches in modern trade, focusing on natural ingredients and luxury price points that are more than 200 times the average price of the category,” he said.
The report also highlighted the shift towards smaller packages in MT channels.
“While large packages have traditionally dominated modern commerce, there is a noticeable shift towards smaller package sizes, which are now growing at twice the rate of large sizes,” he noted.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: August 21, 2024 | 17:53 IS
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