Rural demand for daily household products and groceries has been challenging in villages, potentially impacting the overall consumer goods sector s volume growth. Rural volumes, which have been lagging urban growth for over a year, could either decline or remain flat due to inflation and the proliferation of smaller regional players. Upcoming general elections and a further reduction in inflation are likely to lead to a gradual improvement in FY25.
In the automobile sector, sales of mid-to-premium end of the four and two-wheelers remained stable. But the sales number of entry-level passenger cars and affordable category two-wheelers indicate some serious issues.
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.
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.
“Initially, thinking of quick commerce, most people were banking on grocery as the primary category. Now a lot of companies are releasing items during the festive season. A lot of gold and silver coins, Ganpati idols were sold on these platforms. Going forward, growth will be driven by consumers getting added and the number of monthly and annual transacting users going up.”