According to a research report published by the NIQ,( Nielsen IQ), which is a consumer research firm, India is the only country having double-digit growth in the Asia Pacific region in the FMCG, consumer durables, and Tech field. The report was titled,” Full view of Modern trade retail Trends “, Despite inflationary pressures preparing in the economy modern trade has shown double-digit volume growth in the continuous years regardless of the price fluctuations happening in the sector.
One of the interesting facts reported by the firm through their report is that 41 percent of Indian shoppers who are from urban areas look up a product on various online platforms but end up purchasing it in-store.NIQ data for March 2024, has been compared with the data of the previous year which show that the modern trade in the urban sector of India has grown by 2 percent while tech and consumer durable has undergone a 4 % growth. The major driving force behind the growth in modern retail could be attributed to the Indian festivals. During the festival season, the FMCG sector had a 20% incremental sales whereas tech and consumer durable experienced a 60 % increment in sales, combined with their massive discount offers.
NIQ Report Highlights: India , the only – country with double digit growth
As per the report, the categories of convenience products like toothpaste and washing powder have reported 20 to 30% incremental sales on various big festival days.
Around 40% of the FMCG sales and 30% of consumer durable sales are driven by the premium plus price segment of the modern trade. The executive director of customer success at NIQ has added that most of the new product launches happen in the premium plus face reflecting the mindset of consumers to pay two times more than the average price for superior benefits and features of various products.
The report also highlights that the rate of growth rate of sales of smaller packets or sachets is growing X why is this speed of larger packs? All is our contributing to a more competitive model modern trade environment.
This model of smaller packs encourages customers to have a trial of the product, offering brands the opportunity to optimize their investment which is evident across both food and non-food categories.
As the report says, to stay competitive in a business environment companies must try to optimize their product and hand visibility and maximize ROI from the modern trade channel. This way the branch can leverage the channel’s consistent growth and have a stronger hold in the dynamic market.
In conclusion, it is evident that most of the facts listed by the report are eye-openers to companies, which could be used by them to optimize their brand visibility and strategy in the dynamic market to capture market attention and larger market share. The report focuses on the FMCG sector, tech, and consumer durables. It is high time bad the major market heroes in this sector customize their marketing strategy taking into consideration the facts published by the report.
