NEW DELHI: India is the only market in the Asia-Pacifc region that has been consistently delivering double-digit growth in FMCG, and tech and consumer durables (T&D) sales, said consumer research firm NielsenIQ (NIQ) in a report on Tuesday.
The report stated that resilience and evolving preferences of Indian consumers, along with premiumisation and festive period sales, are the key drivers for this growth.
“India emerges as the only market consistently delivering double-digit growth in both the FMCG and tech & durables sectors, underscoring the resilience and evolving preferences of Indian consumers,” said NielsenIQ report titled ‘Full View of Modern Trade Retail Trends’.
The premium-plus pricing segment accounts for nearly 40% of FMCG sales and 30% of tech durables sales. Though online channels continue to grow rapidly in India, modern trade channels remain a preferred channel, as per the report. Modern trade involves selling goods through large, organised stores like supermarkets, hypermarkets, department stores, and mini-markets.
The latest data reveals a 2% growth in FMCG sales and 4% in tech durables from modern trade channels on MAT (moving annual total) basis in March 2024. “Despite inflationary pressures, modern trade has shown resilience, with double-digit volume growth continuing regardless of price fluctuations.
Interestingly, there is a growing preference for products in premium-plus pricing, which accounts for approximately 40 per cent of FMCG sales and 30 per cent of tech durables sales, both experiencing significant growth,” said the report.
Festive seasons and peak shopping periods remain key for both the FMCG and tech durables sectors.These periods “contribute 20% of incremental sales for FMCG and 60% for tech durables.