Top Story

e4m_logo.png

Home >> Media – Print >> Article

ORG-MARG study on FMCG throws up surprises

10-February-2001
Font Size   16
ORG-MARG study on FMCG throws up surprises

The latest findings of an ORG-MARG study on the FMCG sector has thrown up a mixed bag of surprises. FMCGs sector registered an 8 per cent value growth over 1999. In absolute value terms, the category clocked in sales of Rs 4,27,000 crore in 2000, against the previous year's Rs 3,96,000 crore. Per capita consumption also rose from Rs 394 in 1999 to Rs 415 in 2000.

The ORG study indicates that growth in FMCGs was driven primarily by the rural segment. While growth in urban areas has more than doubled from 5.9 per cent in 1999 to 11.9 per cent in 2000, growth in rural markets has risen from 4.5 per cent to 7.8 per cent. The factors that led to the growth include higher average household income in rural and urban areas, along with increased media penetration and dealer presence.

However, on the downside, there was a marginal decline in literacy rates in rural areas and a slender increase in urban areas.

Interestingly, lifestyle and convenience-oriented products have influenced growth in the overall FMCG segment, but packaged grocery, lighting and household care are three areas which ranked low in the consumer's shopping list. The biggest gainers were cooking medium, hair-care and personal care products for women. Food product registered a marginal increase from 7.1 per cent in 1999 to 8.1 per cent last year.

According to the ORG-MARG study, distribution, volumes and price have been key growth drivers in the FMCG sector last year.

While prickly heat powder, perfumes and deosprays have shown appreciable growth, categories which grew negligibly were toothbrushes, toilet soap and toothpowder. In rural markets, while lipsticks have grown by value, skin creams appear to have grown in volumes. Rural men, in contrast, seem to have a high affinity towards aftershave lotions. Shaving rounds and shaving creams are not high in their priority.

In urban areas, growth of personal-care products for men and women has been largely value-led, rather than influenced by growth in volumes.

MNCs and Indian companies were neck-to-neck in terms of percentage share in the total FMCG pie, but value growth of Indian companies was much higher than their foreign counterparts.

Tags

Vijay Mansukhani, speaks to exchange4media about the resurgence of Onida, the scope of growth of consumer electronics market in India and the reasons why Indian consumer electronics brands don’t compete on a global scale

Projjol Banerjea opens up about hiring Anne Macdonald and GroupM's Rob Norman, and the brand's new identity

Meera Iyer tells exchange4media that in FY 2016/17, bigbasket clocked a revenue of Rs 1,400 crore. The online supermarket currently stands at 70,000 orders a day, with operations in 25 cities.

CMO, Kashyap Vadapalli on the start-up’s marketing play, why it has decided to stay away from IPL and response to its furniture rental apps

Projjol Banerjea opens up about hiring Anne Macdonald and GroupM's Rob Norman, and the brand's new identity

CMO, Kashyap Vadapalli on the start-up’s marketing play, why it has decided to stay away from IPL and response to its furniture rental apps

The aim is to advance the company’s goal of simplifying its business and drive deeper service connectivity to its clients