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FMCG sector to grow 12-13 per cent in 2018: Nielsen
Overall macro-economic scenario and FMCG industry dynamics peg this year’s growth to be around 12-13%, closer to last year’s growth range. The economic momentum is expected to gather pace through the H2 of 2018 benefiting from a favourable economic and policy environment
By
migrator
migrator
New Delhi
Retail stock levels have jumped to levels higher than pre-demonetisation period:
Demonetisation woes and uncertainties around GST had created short-term stress on retail stock levels. But, retail stock levels have bounced back to stand at a higher level now
Modern trade channels have bounced back
Growth fuelled by store universe expansion and better activation through multiple big days / weeks and general consumer promotions
Rural to urban growth differential picks up again
With wholesale channels bouncing back, FMCG growth in rural markets have gradually picked up due to which the growth differential between rural and urban areas has reduced
Naturals trend continues in personal care
Natural segment continue to show healthy growth of 20% (MAT Mar’18 vs year ago) - almost 3X times of the non-natural segment.
The trade dynamism triggered by demonetisation and GST roll out has almost settled down. As a result, Apr-Jun 2018 quarter witnessed strong shipment growth on the back of a low base of last year. The retail stock levels have risen and now stand at higher than pre-demonetisation level; modern trade channels are showing very high growth and rural growth has picked up as cash is back in the market
- Sameer Shukla, ED, Nielsen India
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