Unlock 1.0 saw FMCG industry clocking growth of 4.5% versus a year ago: Nielsen FMCG Snapshot 2020

Nielsen FMCG report Q2 2020

Nielsen FMCG Growth Snapshot 2020 highlights how the industry shows signs of revival with the Unlock 1.0 after a brief period of decline pointing towards disruption and more factors in the production & the supply chain.

The novel coronavirus (COVID-19) pandemic has led to a disruption in both supply chain and consumer behavior in Q2’20. As India went through the two-month-long lockdown phase, there was a stark decline in macroeconomic factors and consumer confidence.

  • A steep decline in consumer confidence Globally as well as in India, on account of personal finance and job concerns.
  • Full-year GDP Forecast becomes negative at -5%
  • A significant decline in Industrial production post March’20
  • Unemployment rates reaching an all-time high of 24% in April’20 and May’20

Also read: Indian marketers find acting upon ‘Real-time’ data to be a challenge:…

Thee FMCG industry in the quarter witnessed an unprecedented decline of -17.1%, in April & May but also displayed early signs of revival with the unlock period in June, when the growth moved back to the positive side (4.5% versus the previous year i.e. June ‘19).

Nielsen Retail Audit data was analyzed to pull out some of the salient trends from the quarter that ended in June 2020 with a revised industry growth outlook for this year-

  • Unlock 1.0 in June’20, saw a revival of the FMCG industry clocking a growth of 4.5% versus a year ago. The revival was aided by opening up of retail stores and consumers looking at resuming normal consumption levels across categories.
  • The pandemic was severe in Indian Metros and Urban centers as compared to the rural areas. The smaller towns and rural markets had a strong bounce back in June, after two months of negative growth during the lockdown.
  • North & east saw a shift from negative industry growth of Apr-May to high single-digit growth in June. On the other hand, the West zone that has a relatively higher urban population and had a higher severity of the pandemic continued to decline in June.
  • As the situation improved in June, we saw that Traditional Trade and E-Commerce channels bounced back strongly.
  • After sharper declines in Apr-May across Non-Food categories, they registered a notable bounce back in June with Unlock 1.0. This recovery was particularly seen among Personal Care and Home Care categories.
  • The Traditional Trade channels had the highest impact in the quarter on account of store closures during the lockdown. Modern Trade, on the other hand, had a spike in sales towards the latter part of March and early April when consumers used this channel for up stocking.
  • Rural grew 3X across India in June 2020- After witnessing slower growth compared to Urban in Q1’20, Rural markets led the industry revival in June with a double-digit (12%) growth versus June of 2019. At an overall quarter level also, Rural markets were less impacted as compared to their Urban counterpart (11% decline for Rural vs 20% for Urban).

You can see the complete report here:

 

Comments

comments

Previous articleMedia Samosa Round-Up: July 27 to July 31
Next articleMPL appoints Himanshu Raj to head brand communications
Media Samosa is an online publication reporting trends, insights and breaking stories on various verticals of media marketing.

LEAVE A REPLY

Please enter your comment!
Please enter your name here