Small Is Beautiful: Regional FMCG Firms Outdo Established Giants With 42 Per Cent Growth In September, Says ReportRepresentative image. (Yasbant Negi/The India Today Group/Getty Images)

According to Neilsen, a market research firm, growth numbers of the regional FMCG firms for September (2018) are higher than those of the larger established players, as reported by Business Standard.

FMCG (Fast Moving Consumer Goods) category includes those products that are sold at relatively lower prices but in higher quantities. Toothbrush, soaps, cereals, beverages are some of the examples.

Despite the triple threat of GST (Goods and Services Tax), the entry of global firms and Demonetisation, small regional firms have posted their highest ever growth rate of 42 per cent in September. This isn’t a one-off record since these firms have been displaying increasingly positive results in the last few months.

“Many new firms, meanwhile, have joined the pool. This may have lifted the average growth rate since weaker players that dragged down the average rate of growth, are no more on the list,” Sameer Shukla, executive director, Nielsen India, said acknowledging that those firms which could adapt to the GST regime shut shop.

Rural India has also been welcoming of established brands. It was earlier reported that 58 per cent of the sales of organised retail outlets came from towns and villages with a population not exceeding 1 lakh. Rural India also accounts for 40 per cent of total FMCG sales in the country.

Tags: 

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement