By Aditya Raghunath
Investing.com -- A survey by retail intelligence firm Bizom said that India’s fast-moving consumer goods (FMCG) segment might have seen sales drop by almost 32% in May. Bizom tracks 7.5 million retail stores around the country. This drop in May follows a 16% drop in April. Personal care declined the most at 52% while beverages fell 33%.
In a separate report, Ullas Kamath, joint managing director of Jyothy Labs (NS: JYOI ) said that while demand in rural markets has not been hit, consumer sentiment is down. In an interview to Mint Ltd, he said, “There’s demand because the government spent a lot of money last year. This year, we have not seen any big announcement happening yet. While we don’t know the extent of cases in villages, it has not hit the pocket, but it has definitely hit their mindset.”
An Economic Times report on May 22 said that large FMCG companies are cutting production after orders from large retail chains, e-commerce firms and even distributors have dried up due to operational issues and restricted store timings, coupled with low demand.
June will be a crucial month for the industry as it can throw up signs of either a revival or that the slowdown will continue.
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