It may be mentioned here that downtrading happens when consumers shift from larger packs to smaller packs. This trend was noticed in several categories till October.
Sales of fast-moving consumer goods (FMCG) witnessed significant recovery in September after enduring a double-digit decline in August, according to data furnished by Bizom.
Kirana stores in rural areas stocked up in preparation for the festival season, which began in September.
This, combined with rainfall reaching 113 per cent of the long-perid average for the month, contributed to a boost in sales.
Snacking and sweetmeat gifting sees an upswing during the festival season. Desmond D’souza, senior director (sales), Mondelez India, said the festive season kicked off on a positive note with a good offtake during Rakhi. “As we approach Diwali, our brands like Cadbury Celebrations, Oreo will continue to shine across all sales channels, building on our success from previous years,” added D’souza.
The downtrading phenomenon, where consumers switch to purchasing smaller product sizes due to financial difficulties or rising prices, has intensified in the fast-moving consumer goods (FMCG) sector. Data from retail intelligence platform Bizom shows that smaller product sizes have experienced more rapid growth compared to medium or high-priced alternatives across most FMCG categories.
With the rains at unprecedented low in August, kiranas are thinking twice before stocking up on goods. With August 2023 rain shortfall at almost a 100-year low, we are seeing kiranas stocking up very carefully, Akshay D Souza, chief of growth and insights at Bizom.
He added, As we look ahead, it does seem that the impact of rains in September will be critical to the sowing season.