Business
From Groceries To Gadgets: FMCG Sales Up By 8 Per Cent, Electronics By 25 Per Cent In FY23
FMCG sector is underperforming. (INDRANIL MUKHERJEE/AFP/GettyImages)
In the last financial year, daily essentials, groceries, home and personal care products sales increased by 8 per cent.
However, electronic products sales increased significantly by 25 per cent after a slow start in the beginning of the year.
The growth of sales for fast-moving consumer goods and electronics and durables was higher by 18 per cent and 30 per cent respectively in the previous year, says industry executives and Bizom, reported The Economic Times.
The increase was due to Covid-19 restrictions and lockdowns causing a lower base in the previous year. Bizom analyses data based on orders at kirana stores.
Vijay Chaudhary, Unicharm India's MD, predicts sustained consumption this year, with a potential for double-digit growth due to consumer optimism. However, rising Covid cases in the past week raise concerns.
2022's hot summer drove a 24 per cent growth in beverage sales, while commodity product sales remained steady at 8 per cent throughout the fiscal year.
According to Akshay D'Souza, Chief of Growth and Insights at Mobisy Technologies, who owns Bizom, last year's revenge festivities were subdued due to lower sales caused by inflation. However, the March quarter showed strong signs of a reversal with a 14 per cent sales expansion and double-digit growth across categories.
Firms anticipate growth and a recovery this fiscal year due to inflation decrease, which may cause price reductions in various categories.
According to a report by Systematix, categories that experienced price reductions are expected to have positive volume growth. The report highlights the effects of decreasing commodity prices, aiding in measures such as price cuts, promotions, marketing, and the launch of new lower-priced products.
Furthermore, the report suggests that converging value and volume growth rates in most categories are present due to the lack of price hikes and mix enhancement.
Sales of premium electronic goods, including refrigerators, air-conditioners, washing machines, and televisions, increased by 20-25 per cent in value during 2022-23 due to higher demand and a 5-7 per cent price increase.
According to industry executives, sales volumes grew by 10-15 per cent, primarily driven by the premium range.
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