Consumer Goods Sector Sees 9% Growth Amid Rural Revival: NielsenIQ
rural markets continued to improve during the quarter, with sales volumes increasing 6.4 per cent from 4 per cent in the June quarter
India’s consumer goods sector saw a 9 per cent increase in value as rural consumer’s purchasing power increased in the July to September quarter, according to a NielsenIQ report released on Tuesday.
According to the market research firm, rural markets continued to improve during the quarter, with sales volumes increasing 6.4 per cent from 4 per cent in the June quarter. The volume of the rural market had decreased during the last four quarters by about 2 to 5 per cent.
While rural markets began to recover, consumption growth in urban areas remained steady. According to the report, consumption in the retail sector increased 7.5 per cent in traditional trade and 19.5 per cent in modern trade during the quarter.
While mom-and-pop shops comprise traditional trade, large supermarket chains are part of modern trade. Rural India has seen a persistent decline in the demand for consumer goods as a result of rising costs for basic necessities like milk and wheat flour, which has forced people to cut back on both necessities and discretionary spending.
Retail inflation in India reached a 15-month high in July before declining in August and September. According to data from the Centre for Monitoring Indian Economy (CMIE), unemployment decreased to 7.1 per cent in September but increased to over 10 per cent in October.
According to the report, there appears to be a shift in rural consumer’s spending habits towards non-essential items, as evidenced by the rise in expenditure on discretionary categories such as home care and personal care products.
