India gears up for the new normal as consumer behaviour shifts
4 years, 7 months ago

India gears up for the new normal as consumer behaviour shifts

Live Mint  

On 24 March, the government effectuated one of the world’s strictest lockdowns to combat the spread of covid-19, which changed consumer behaviour and purchasing patterns. According to a World Economic Forum and Bain & Co. report, titled Future of Consumption in Fast-Growth Consumer Markets – India, released in January 2019, about 66% of India’s overall consumption is accounted for by households earning less than ₹5 lakh, out of which 32% is contributed by households earning less than ₹2.5 lakh, annually. A more recent and weekly survey by Bain & Co. and People Research on India’s Consumer Economy since April ascertains that covid-19 has deeply impacted the consumption of consumer goods in India. Consumer spending has shifted towards essentials like grocery, staples and healthcare, with discretionary categories like alcoholic beverages and consumer electronics witnessing a steep decline, primarily driven by limited access due to the lockdown. ITC, for example, took the challenge head-on by leveraging multiple online delivery platforms like Swiggy and Domino’s and even set up a ‘Store on Wheels’ to reach consumers directly in large residential complexes.

India Consumer Crisis Households  overall  goods  behaviour  india  consumer  normal  consumption  driven  shifts  crisis  future  online  formats  households  gears

History of this topic

FMCG Q3 preview: Rural consumption holds up, but urban slump may weigh on consumer goods companies
2 days, 6 hours ago

FMCG Q3 preview: Rural consumption holds up, but urban slump may weigh on consumer goods companies

Live Mint  

New Delhi: Despite some pockets of resilience in rural markets and price hikes to combat inflation, India’s consumer goods companies faced a challenging third quarter. A delayed winter added to weak urban demand woes and inflationary pressures, and several consumer goods companies are expected to report low single-digit revenue growth and margin contraction for the October-December period. On Monday, Mumbai-based …

India's Rural Demand Surpasses Urban Markets in FMCG Growth
8 months ago

India's Rural Demand Surpasses Urban Markets in FMCG Growth

Deccan Chronicle  

Chennai: Rural demand for packaged consumer goods outpaced urban markets for the first time in five quarters, while the FMCG industry witnessed 6.5 per cent growth in sales volume in the March quarter, according to NielsenIQ. On the other hand, urban markets reported a 5.7 per cent year-on-year rise in demand and the growth was slower than the December quarter’s …

“Travel sentiment continues to remain positive”
1 year, 9 months ago

“Travel sentiment continues to remain positive”

The Hindu  

How is travel demand looking at the moment considering we are in what is thought of the typical off-season? I think the announcement such as the one about direct flights to Jakarta could lead to demand doubling for travel to Indonesia from India. While it can be compared to Malaysia and Thailand, the travel time to places like Bali is …

India's Retail Inflation Likely To Have Slowed In February But Remains Beyond RBI Limit: Report
1 year, 9 months ago

India's Retail Inflation Likely To Have Slowed In February But Remains Beyond RBI Limit: Report

News 18  

India’s retail inflation in February is likely to have eased after remaining at 6.52 per cent in January. The retail inflation came under the RBI’s 2-6 per cent band in November with 5.88 per cent rate after remaining beyond it for 10 months consecutively. The March 2-9 Reuters poll of 43 economists showed inflation, as measured by the CPI, likely …

Consumer goods makers bet on rural recovery to lift profits
1 year, 10 months ago

Consumer goods makers bet on rural recovery to lift profits

Live Mint  

A nascent revival in rural demand is likely to prop profits at Indian consumer goods companies in the March quarter, as improving income and credit disbursal allow buyers to spend more on branded oils, tea, snacks and soaps. Rural consumers - hit especially hard in the aftermath of the pandemic - typically make up about two-thirds of consumer goods companies' …

Explained | Is the economy driving with the brakes on?
2 years ago

Explained | Is the economy driving with the brakes on?

The Hindu  

The story so far: At this time last December, India’s economy was on the cusp of a fledgling recovery from the COVID-19 pandemic, though the Omicron variant posed fresh speed bumps for the rebound. As JP Morgan managing director and India chief economist Sajjid Chinoy explained at a CII economic policy summit last week, 2022 was expected to see a …

On inflation in India, a silver lining of stability
2 years ago

On inflation in India, a silver lining of stability

Hindustan Times  

After treading above the Reserve Bank of India’s target range for almost a year, India’s consumer price inflation is finally back within the band — registering a 5.9% year-on-year increase in November. However, we Food inflation remains the dominant driver of volatility in consumer price index inflation, despite the sharp pullback in the prices of vegetables and fruits being the …

Interim relief: The Hindu Editorial on retail inflation’s fall to a 11-month low in 2022
2 years ago

Interim relief: The Hindu Editorial on retail inflation’s fall to a 11-month low in 2022

The Hindu  

After a seemingly interminable 10-month streak of Indian consumers facing runaway price rise of over 6%, retail inflation appeared to have relented a bit in November to 5.88%. Since April 2022, when retail prices surged at a near-eight year high rate of 7.8%, five of the first eight months of 2022-23 year registered 7%-plus inflation. Vegetable prices may remain benign …

Data | Indian manufacturers on recovery path, yet urban consumers lack confidence
2 years, 2 months ago

Data | Indian manufacturers on recovery path, yet urban consumers lack confidence

The Hindu  

The share of urban consumers pessimistic about the Indian economy continued to decline in September 2022 as COVID-19 cases continued to fall. Consequently, the share of urban consumers worried about their income levels has also remained stagnant since May 2022. In the latest period, 51.2% of service sector companies reported that their turnovers had increased, 40.3% reported that there was …

Ordering Essentials Online Even Post Covid? Here's How AI Has Tiptoed in Your Life & Won't Let You Go Out Soon
2 years, 6 months ago

Ordering Essentials Online Even Post Covid? Here's How AI Has Tiptoed in Your Life & Won't Let You Go Out Soon

News 18  

When the Covid-19 pandemic was declared by the World Health Organization in 2020 and several countries, one after another, including India, began to declare nationwide or partial lockdowns, forcing many people to stay inside their homes, the digital connectivity boomed. “Additionally, industry leaders are aggressively investing in technologies that offer predictive capabilities, focusing on artificial intelligence and machine learning solutions …

Economy may take more than a decade to overcome COVID-19 losses: RBI report
2 years, 8 months ago

Economy may take more than a decade to overcome COVID-19 losses: RBI report

The Hindu  

The Indian economy may take more than a decade to overcome the losses caused by the outbreak of COVID-19 pandemic, according to Reserve Bank of India’s Report on Currency and Finance. Taking actual growth rate of 6.6% for 2020-21, 8.9% for 2021-22 and assuming growth rate of 7.2% for 2022-23 and 7.5% beyond that, India is expected to overcome COVID-19 …

Retail inflation mounts to 6.07%
2 years, 9 months ago

Retail inflation mounts to 6.07%

The Hindu  

India’s retail inflation inched up to an eight-month high of 6.07% in February from 6.01% in January, with rural India experiencing a sharper price rise at 6.38%. Food and beverages Food and beverages inflation hit a 15-month high and the rising prices of edible oils are likely to pose a challenge in coming months, ICRA chief economist Aditi Nayar pointed …

Covid-19: Omicron surge cripples several businesses, to hit economic recovery
3 years ago

Covid-19: Omicron surge cripples several businesses, to hit economic recovery

India Today  

A fresh wave of Covid-19 infections in India has cast a shadow over economic recovery as several sectors have been impacted by fresh restrictions that have been announced in view of the situation. Numerous businesses spanning across multiple sectors have been impacted in light of the fresh restrictions imposed by states. While many people are still travelling despite the fresh …

September retail sales near pre-pandemic levels
3 years, 2 months ago

September retail sales near pre-pandemic levels

Deccan Chronicle  

Chennai: With festive cheer spreading, retail sales in September grew faster compared to the same month last year and was closer to the pre-pandemic level in September 2019. According to the Retailers Association of India, retail sales in September 2021 were at 96 per cent of the pre-pandemic levels of September 2019. When compared to September 2019, categories like consumer …

Explained: Is India's economy gaining immunity against Covid-19?
3 years, 4 months ago

Explained: Is India's economy gaining immunity against Covid-19?

India Today  

India’s economy is on track to rebound sharply after two waves of the Covid-19 pandemic dampened growth during all four quarters of FY21. A majority of financial analysts predict GDP growth at 18-20 per cent in the June quarter and remain optimistic about economic recovery in upcoming quarters as the second wave fades and more Indians get vaccinated against the …

India's economy shows signs of recovery as factory activity rises in July
3 years, 5 months ago

India's economy shows signs of recovery as factory activity rises in July

India Today  

India’s economy has shown signs of recovery in July as factory activity rebounded on the back of rising domestic and international demand. IHS Market’s survey confirmed that output rose at a robust pace, with over one-third of companies noting a monthly expansion in production as business rebound and Covid restriction ease. Read | Factory activity shrinks for first time in …

Explained: How businesses plan to expand as Covid situation improves
3 years, 5 months ago

Explained: How businesses plan to expand as Covid situation improves

India Today  

Several businesses in the country are planning to expand as the Covid-19 situation improves after the deadly second wave. A retail sales boost is crucial for India’s economic recovery, which was unceremoniously halted by the second Covid-19 wave. FABINDIA’S EXPANSION DRIVE Fabindia, one of the country's most well-known retail chains dealing in a variety of ethnic and handmade products, plans …

India's retail inflation jumps to 6.3% in May, breaches RBI target
3 years, 6 months ago

India's retail inflation jumps to 6.3% in May, breaches RBI target

India Today  

India’s retail inflation has spiked sharply to 6.3 per cent in May after easing to 4.23 per cent in April, as per data released by the government on Monday. It may be noted that food inflation rose to 5.01 per cent in May, compared to 2.02 per cent in April. Earlier in the day, wholesale price-based inflation data released indicated …

Covid-19: After healthcare, FMCG inflation hits Indian households
3 years, 6 months ago

Covid-19: After healthcare, FMCG inflation hits Indian households

India Today  

Millions of Indian households are spending more on essential goods including daily groceries after a 20 per cent rise in FMCG inflation in the past year. The steep FMG inflation has been triggered by rising prices across 40 per cent of grocery products, reported BusinessToday.in. Read | Why rising inflation, Covid could be a spoilsport in growth recovery EDIBLE OIL …

Consumer confidence hits an all-time low: RBI report
3 years, 7 months ago

Consumer confidence hits an all-time low: RBI report

Hindustan Times  

The Reserve Bank of India’s consumer confidence index fell to a record low, with the second wave of Covid-19 affecting most people’s outlook on both the economy as well as employment. The Current Situation Index and the Future Expectation Index fell to an all-time low of 48.5 and 96.4 in the latest round of the central bank’s consumer confidence survey …

India's factory activity growth slipped in May as demand fell
3 years, 7 months ago

India's factory activity growth slipped in May as demand fell

India Today  

India's factory activity growth slowed significantly in May as an escalation in coronavirus cases whacked new orders and output while scarcity of raw materials drove up input costs, a private sector survey showed on Tuesday. India has already reported around 28 million coronavirus cases and over 300,000 deaths, leading many states to impose restrictions affecting economic activity. Read | Core …

Indian economy, hit by COVID-19, shrinks by 7.3% in 2020-21
3 years, 7 months ago

Indian economy, hit by COVID-19, shrinks by 7.3% in 2020-21

Associated Press  

NEW DELHI — India’s economy, pummeled by the coronavirus pandemic, contracted by 7.3% in the 2020-21 financial year, just before the country was hit by another catastrophic surge in infections. Daily new cases set global records, spurring many states to announce widespread restrictions and lockdowns. In January, a government survey estimated the economy -- previously one of the fastest growing …

India’s economic report card is drenched in red ink
3 years, 7 months ago

India’s economic report card is drenched in red ink

Live Mint  

India’s nascent economic recovery has been derailed by the second covid-19 wave even before it could gather steam. Launched in October 2018, Mint’s macro tracker provides a monthly state-of-the-economy report based on trends in 16 high-frequency indicators across four segments: consumer economy, producer economy, external sector, and ease of living. A year ago, during the first nationwide lockdown, 13 of …

COVID-19 has Sparked New Wave of Innovations Across Consumer Industries: Accenture Research
3 years, 7 months ago

COVID-19 has Sparked New Wave of Innovations Across Consumer Industries: Accenture Research

News 18  

Accenture, the leading international consulting company, has released findings of their latest research that states that consumer-centric companies are repurposing physical locations, exploring new business models, and rapidly adopting advanced analytics and “other disruptive technologies,” to find new sources of growth. The findings from the ‘How consumer companies can innovate to grow’ report note that 95 percent of consumers have …

Explained: How 2nd Covid-19 wave will impact India's economy
3 years, 8 months ago

Explained: How 2nd Covid-19 wave will impact India's economy

India Today  

An unprecedented rise in Covid-19 cases is likely to slow down India's economic recovery, but the overall impact will be milder in comparison to last year's devastation. Ratings agency CRISIL recently said in a note that the impact on industrial activity during the second wave is smaller in comparison to the devastation witnessed in 2020. Read | Explained: How much …

Economic impact of 2nd Covid-19 wave could worsen in coming weeks. Here's why
3 years, 8 months ago

Economic impact of 2nd Covid-19 wave could worsen in coming weeks. Here's why

India Today  

A sharp surge in daily cases during the second wave of the Covid-19 pandemic has led to stricter lockdowns in most states. Brokerage firm Nomura recently said in a report that the pace of business activity resumption has taken a huge knock due to the mobility restrictions across Indian states. Business activity in India has started plummeting since the second …

V-shaped recovery unlikely as India's economy faces tougher Covid test
3 years, 8 months ago

V-shaped recovery unlikely as India's economy faces tougher Covid test

India Today  

India’s economic recovery has been cut short by an unprecedented Covid-19 wave that has forced many states to impose localised lockdowns. In January, the government said India’s economy would see a ‘V-shaped’ recovery as economic activity resumed in full swing after the first wave. ECONOMY FACES COVID TEST India’s gross domestic product could go through multiple revisions in the current …

COVID-19 impact: Indian households spent more on food, less on healthcare during first lockdown
3 years, 9 months ago

COVID-19 impact: Indian households spent more on food, less on healthcare during first lockdown

Firstpost  

One year on, the effects of the COVID-19 pandemic continue to linger. The figure below illustrates a box plot of changes in total household expenditures between June 2019 and June 2020 using the CPDx household survey data. In June 2020, data shows a 1 percent further reduction in the overall share of health expenditures in the total for both rural …

Economic recovery stumbles as consumer confidence drops in March
3 years, 9 months ago

Economic recovery stumbles as consumer confidence drops in March

India Today  

The resurgence of Covid-19 threatens to severely derail India’s economic recovery as several key indicators fell in March. “Consumer confidence for the current period weakened in March 2021 as the current situation index 3 dipped further in the negative territory on the back of deteriorating sentiments on the general economic situation, income and prices,” the survey said. “Respondents expressed lower …

Explained: 4 ways how fresh Covid-19 restrictions can disrupt economic recovery
3 years, 9 months ago

Explained: 4 ways how fresh Covid-19 restrictions can disrupt economic recovery

India Today  

A sharp rise in Covid-19 cases could severely slow down India’s economic recovery as many states have now started reimposing partial restrictions. India's economic recovery momentum could take a huge hit if states decide to impose stricter restrictions to contain the infection. Here are four ways in which fresh Covid curbs can hurt the economy: IMPACT ON ECONOMIC ACTIVITY A …

Will covid-19 halt India’s economic recovery once again?
3 years, 9 months ago

Will covid-19 halt India’s economic recovery once again?

Live Mint  

After months of erratic economic performance, India’s economic momentum had picked up pace last February, only to be stopped on its tracks by a global pandemic. Mint’s macro tracker shows a steady improvement in economic indicators over the past few months but a renewed surge in infections once again poses a threat to economic activity and investor sentiments. Launched in …

How Covid-19, Increased Internet Usage Pushed More Startups to Go Public in India
3 years, 9 months ago

How Covid-19, Increased Internet Usage Pushed More Startups to Go Public in India

News 18  

Over the last 10 years, the internet usage in India has grown at a compound annual growth rate of 30 per cent, resulting in 13 times growth of the sector and preparing notable startups in the areas of e-tailing, online grocery and others to launch their IPOs in the near future, a new report showed on Monday. The rapid growth …

2020 Recap: How India survived COVID-19 pandemic - a series of lockdowns, unlocks
4 years ago

2020 Recap: How India survived COVID-19 pandemic - a series of lockdowns, unlocks

India TV News  

The year 2020 began with the fight against coronavirus, and it came with one of the most impactful changes in all our lives - the lockdown. On April 14, Prime Minister Modi announced the extension of nationwide lockdown till May 3 Phase 2 Commonly referred to as Lockdown 2.0, this period came in with a conditional relaxation promised after April …

‘Supply chain shift from China may benefit India’
4 years ago

‘Supply chain shift from China may benefit India’

The Hindu  

India could benefit from the likely shift in global supply chains from China to other economies in the aftermath of the COVID-19 pandemic, according to a survey. Nearly 70% of the survey participants have said India could benefit from this move and they expect a fair share of manufacturing to shift from China to India in the near future,” said …

Opinion | Covid and its impact on economy and MSMEs
4 years, 2 months ago

Opinion | Covid and its impact on economy and MSMEs

Live Mint  

The covid-19 pandemic is the most significant economic event in our lifetime. What this growth looks like As many businesses are seeing today, digital adoption can be a short-term solution to aid business continuity, but many are yet to see this as a long-term solution to build business resilience. Through digital adoption and technology access, MSMEs can modernize not only …

India’s exports grew 6% in Sep after 6-month decline
4 years, 2 months ago

India’s exports grew 6% in Sep after 6-month decline

Live Mint  

India’s outbound shipments rose for the first time in seven months with merchandise exports registering a 6% growth in September—higher than the estimated 5.3% in provisional data released earlier. India’s exports rose to $27.6 billion, while imports contracted 19.6% to $30.3 billion, resulting in a trade deficit of $2.7 billion, according to data released by the commerce ministry. In the …

Retail inflation rises to 6.93 per cent in July on higher food prices
4 years, 4 months ago

Retail inflation rises to 6.93 per cent in July on higher food prices

India Today  

Retail inflation rose to 6.93 per cent in July, mainly driven by rising prices of food items like vegetables, pulses, meat and fish, government data showed on Thursday. The inflation based on the Consumer Price Index stood at 3.15 per cent in July 2019. Retail inflation for June has been revised upwards to 6.23 per cent from the earlier estimate …

Covid-19 Pandemic Impact to be Severe, Prolonged for Aviation, Hospitality, Retail Sectors: ICRA
4 years, 4 months ago

Covid-19 Pandemic Impact to be Severe, Prolonged for Aviation, Hospitality, Retail Sectors: ICRA

News 18  

The coronavirus pandemic will significantly impact performance of companies and it is likely to be severe and prolonged for select sectors, especially aviation, hospitality and retail, according to ratings agency ICRA. As per ICRA analysis, the impact is likely to be severe and prolonged for select sectors, especially aviation, hospitality, retail and allied businesses," it said. The ratings agency, however, …

Covid-19 impact: Which service sectors will boom in the coming digital era?
4 years, 5 months ago

Covid-19 impact: Which service sectors will boom in the coming digital era?

India Today  

According to popular belief, the GDP of a nation is the yardstick of the growth of its economy. In this text, a sectoral comparative analysis of the service economy in the post Covid19 era is being done to better understand and put into use the practices and lessons learned in line with changing para dynamics of the digital marketing and …

Covid-19 Ushering in New Reality For Industries, Changes in Consumer Behaviour: Tata Motors' Chandrasekaran
4 years, 5 months ago

Covid-19 Ushering in New Reality For Industries, Changes in Consumer Behaviour: Tata Motors' Chandrasekaran

News 18  

A tremendous deal of transformation stemming from COVID-19 is expected in mobility segment over the next two years as consumers move to "slow" travel with personal versus public and/or shared transport likely to shape future demand for passenger vehicles, according to Tata Motors Chairman N Chandrasekaran. Referring to the performance of Tata Motors Ltd, he said over the past two …

FMCG firms to stay in the slow lane this year
4 years, 5 months ago

FMCG firms to stay in the slow lane this year

Live Mint  

Market researcher Nielsen now projects India’s packaged consumer goods sales to shrink or remain little changed from last year, slashing its rather optimistic 5-6% growth estimate made on 30 April on hopes that the sector would better withstand the fallout from the coronavirus pandemic. “Despite increased household consumption, even in the dairy sector, overall growth would remain flat for the …

Shoppers are holding back despite economy reopening
4 years, 6 months ago

Shoppers are holding back despite economy reopening

Live Mint  

Businesses in India from car dealers to clothing retail chains are ready for customers as the economy reopens, but shoppers are holding back. “While the supply situation seems to be nearly normal, so far, purchases are need-based,” analysts at Mumbai-based Anand Rathi Shares and Stock Brokers Ltd. wrote in a note to clients, after speaking to more than 200 distributors, …

Covid-19 impact: Apparel manufacturers report 84% drop in May sales, says CMAI
4 years, 7 months ago

Covid-19 impact: Apparel manufacturers report 84% drop in May sales, says CMAI

Live Mint  

New Delhi: India’s apparel manufacturers are not doing well for a plethora of virus-related reasons. A slump in domestic demand for apparel, closure of malls, the shift to making PPE products, and a delay in exports orders has led to a 84% year-on-year dip in sales in the month of May, the Clothing Manufacturers Association of India, which represents over …

Prolonged lockdown pushed up grocery bills: Survey
4 years, 7 months ago

Prolonged lockdown pushed up grocery bills: Survey

Live Mint  

NEW DELHI: Consumers paid more for essentials and groceries during India’s lockdown that started on 25 March as discounts and promotions, typically offered by retailers, went missing during the initial phases of the curbs that disrupted availability of supplies, a survey by LocalCircles has found. Consumers paid more during the lockdown than they did before this period because of reduced …

Govt rejects Flipkart's proposal for entering food retail sector, company says will re-apply
4 years, 7 months ago

Govt rejects Flipkart's proposal for entering food retail sector, company says will re-apply

Firstpost  

The Department for Promotion of Industry and Internal Trade has rejected Walmart-backed Flipkart’s proposal seeking approval for entry to the food retail sector citing a regulatory issue, an official said on Monday New Delhi: The Department for Promotion of Industry and Internal Trade has rejected Walmart-backed Flipkart’s proposal seeking approval for entry to the food retail sector citing a regulatory …

The future of Indian retail post-Covid
4 years, 7 months ago

The future of Indian retail post-Covid

The Hindu  

The lockdown is easing in several parts of the country and non-essential shops are getting back in business. An additional ₹27,000 crore has been invested in ongoing projects,” says Amitabh Taneja, Chairman, Shopping Centres Association of India, who fears defaults in excess of ₹70,000 crore and mounting job losses, if relief isn’t provided to the sector. “Local shops have gained …

Indian economy to contract 5 pc in FY21: S&P assumes COVID-19 peak by third quarter
4 years, 7 months ago

Indian economy to contract 5 pc in FY21: S&P assumes COVID-19 peak by third quarter

India TV News  

S&P Global Ratings on Thursday said the Indian economy will shrink by 5 per cent in the current fiscal as it joined a chorus of international agencies that are forecasting a contraction in growth rate due to coronavirus lockdown halting economic activity. Stating that COVID-19 has not yet been contained in India, the rating agency in a statement said the …

COVID-19 impact: Indian consumers exercise greater decision-making in buying, spending after pandemic outbreak: Deloitte
4 years, 7 months ago

COVID-19 impact: Indian consumers exercise greater decision-making in buying, spending after pandemic outbreak: Deloitte

Firstpost  

Consumers are no longer rushing about being home stocked with more than they immediately need. For more insights, delve into our article on Global State of the Consumer Tracker: https://t.co/gIfVMSU6lu pic.twitter.com/5JPtHo4CVq — Deloitte May 26, 2020 Given the power of digital connectivity and the numerous efforts of strategic decisions recently announced by the Centre, the domestic consumer is gearing up …

COVID-19 Impact: Retail trade lost business worth Rs 9 lakh cr in 60 days; businessmen facing acute financial crunch, says CAIT
4 years, 7 months ago

COVID-19 Impact: Retail trade lost business worth Rs 9 lakh cr in 60 days; businessmen facing acute financial crunch, says CAIT

Firstpost  

CAIT said domestic trade is facing its worst period as shops and commercial markets across the country since last Monday could register only 5% of business, and only 8% of workforce could resume their duties in shops. COVID-19 has hit retail business with a loss of Rs 9 lakh in 60 days and about 40 percent of the six million …

Discover Related