Business of FMCG companies spoiled due to inflation, know how much loss was done

Posted on 3rd Mar 2022 11:20 am by rohit kumar

Indian companies making everyday use products (FMCG) faced a slowdown in consumption in urban markets and a decline in rural areas due to inflation in 2021. Data analysis firm Nielsen said in a report that these companies were forced to increase prices repeatedly due to inflation.

 

In the year 2021, the FMCG industry had to increase prices in double digits for three consecutive quarters to save its margins. Rural markets account for about 35 percent of the total sales of FMCG companies. It was hit hard after the second wave of the Corona pandemic and many FMCG companies including Hindustan Unilever reported negative growth in rural sales in their quarterly results.

 

The Nielsen report says that the increase in prices is affecting small producers. Because of this, there has been a 13 percent reduction in the number of small manufacturers with a turnover of less than Rs 100 crore. In the last two years, 8 lakh new FMCG stores were added and more than half of these are in rural areas. This speed of new store openings is more than double compared to pre-Covid years. With the opening of new stores in residential areas, the Metro-India retail store has expanded to meet the demands of consumers who have been working from home for almost two years. Rural markets bore the brunt of the price hike during the October-December quarter.

 

According to the report, both urban and rural markets witnessed a decline of (-) 4.8 percent in traditional trade, indicating a slowdown. The calendar year has seen double-digit growth, however, the decline in consumption impacted by the rise in prices will have to be monitored.

Other news

UPSSSC PET Exam 2022: What is PET and what are its benefits, know complete details from here

The Uttar Pradesh Subordinate Services Selection Commission has started the application process f

World's Most Polluted City: Delhi on top in terms of pollution for the fourth consecutive time, this district of Bihar came into discussion

Delhi has once again become the most polluted capital of the world. This news is very bad for the

Encounter between police and Taliban on Pak-Afghan border: news of the death of many people; 7 Pakistanis were killed in firing two months ago

There is an encounter between the Afghan Taliban and the Pakistani Police Force on the Pakistan-A

The world is going to be 8 billion: it took 123 years to reach 1 to 2 billion, then 6 to 7 billion happened in just 12 years

24 hours in 1 day, 60 minutes in 1 hour, and 270 children in every minute… With this speed

H3N2 Influenza In Assam: First case of H3N2 came to light in Assam, health department is on alert

H3N2 Influenza In Assam: The first case of H3N2 influenza has been reported in Assam and the heal

Vladimir Putin turns 70: How the world is dancing at the behest of the boy who came to become a KGB agent at the age of 16

Russian President Vladimir Putin turns 70 today. He has been president since 2012 and has no one

World Cup 2023 Final: India won despite the defeat! Kohli-Shami created history; Kangaroo players were left behind in this matter

World Cup 2023 Final: It is said that only what is written in destiny remains together. Something

Rupee-Dollar Update: The biggest fall in the rupee against the dollar, the rupee fell to the level of 78.85

Rupee at All-Time Low: The rupee witnessed a historic fall on Tuesday against the dollar. Due to

PM Awas Yojana: Construction of more than three crore strong houses completed, PM said - this is a symbol of women empowerment

The Modi government has made a big achievement in the Pradhan Mantri Awas Yojana. The central gov

IPL 2024: 'He has proved' Bhajji praised Hardik Pandya, told what are his qualities

Former Mumbai Indians spinner Harbhajan Singh has praised the leadership abilities of all-rounder