Sales of FMCG, electronic products decline in June as compared to May

4 Jul 2022 , 10:33 AM

The value of the fast-moving consumer goods (FMCG) market in India decreased by 1%, while sales of electronic items like air conditioners and refrigerators plummeted by 25% from May to June, showing that demand is still being harmed by increased pricing. 

According to the most recent study by Bizom and industry estimates, FMCG and consumer electronics have declined twice in a row.

Due to a low base from the prior year and the impact of the Covid second wave-led demand, the June quarter experienced an increase of 14%. Shrinkflation, or decreasing pack sizes without cutting prices, has assisted businesses in achieving value growth while volume has decreased over the previous year. Experts believe that both value and volume of consumption have been impacted by increasing costs, nevertheless.

Given that global commodity prices have started to decline, this may change. According to Akshay D’Souza, director of growth and insights at Mobisy Technologies, the company that owns Bizom, “we are witnessing the pricing of edible oils cooling off with the supply starting to normalise.” “The government is also working to control the cost of commodities like wheat, rice, and petrol. This would lessen the pressure on FMCG firms to shift their attention from price-led growth to consumption growth.”