Ahead of the upcoming festive season, fast moving consumer goods companies (FMCGs) are ramping up their supply chains and marketing campaigns, expecting bumper sales. FMCG sales in August grew by 6.3 per cent sequentially, according to the latest data from Bizom. Sales had been declining for the past three months.
A report by Mint quoted Madhur Pandey, vice president of marketing at Parle Agro as saying that supplies are the outcome of the demand.
"We foresee huge demand in September-October and we have geared up our entire supply chain, particularly our factories. We are also expanding our infrastructure and distribution, which will tackle the spike in demand and lead to higher reach in the market," Pandey told Mint.
After two years of subdued demand due to the Covid-19 pandemic, Hemant Malik, divisional chief executive of the foods division at ITC Ltd, said that he expected a strong uptick in demand this festive season.
Malik further added that ITC's gift packs made up of juices and milkshakes saw high demand during Rakshabandhan. The company is crafting specialised offerings across its food portfolio, including cookies, chocolates and beverages.
Supply chain constraints, high commodity prices, and high retail inflation have forced companies to increase their retail prices. Amul, and Nestle, among other FMCG companies, have hiked the prices of their products several times in 2022 itself.
However, Anil Vishwanathan, vice president of marketing at Mondelez India, told Mint that the company was optimistic about the upcoming season.
"We will be leveraging our full portfolio across most of our stores since we expect the remaining of the gifting season to perform like never before. Like every year, we are introducing a segmented portfolio across channels and at different price points catering to a diverse consumer cohort. The amplification will be through different multimedia channels," Vishwanathan said.
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First Published: Wed, September 07 2022. 09:24 IST