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In the fiscal year 2023, in the recent two quarters, Fast Moving Consumer Goods (FMCG) companies have proactively reduced product prices by a range of 3% to 11%. This strategic adjustment comes in response to the alleviation of commodity inflation during this period. Noteworthy sectors affected by these price cuts include soaps, detergents, hair oils, biscuits, and shampoos, with the primary aim of stimulating volume growth. However, despite these initial price reductions, a new challenge has emerged in the form of the resurgence of local and regional brands. Their increasing prominence over the past two quarters is intensifying the competitive landscape. Industry experts emphasize that the mounting influence of these local and regional brands is putting additional pressure on FMCG companies to contemplate further price cuts in order to maintain competitiveness in the market. This trend underscores the dynamic nature of the FMCG sector and the strategic considerations that companies must navigate to sustain growth in a competitive environment.

This week’s edition of “Indian Retail at a glance” shares insightful articles on Why D2C brands are going offline? Why FMCG firms stare at sharper price cuts as local brands loom?

FMCG firms stare at sharper price cuts as local brands loom

The country’s Rs 5-trillion fast-moving consumer goods (FMCG) market may have to take sharper price cuts to shore up volume growth amid rising local competition and sluggish rural demand.

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Pre-Diwali stocks lead to 4.4% rise in FMCG sales this festive season: Report

Fast-moving consumer goods (FMCG) sales, excluding staples like edible oils, wheat, and rice, witnessed a 4.4% rise during this Diwali season.

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FMCG major Nestle India on track to launch plant-based protein products

Fast-moving consumer goods (FMCG) major Nestle India is on track to launch plant–based protein products in the country.

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More Inventory Days for Consumer Goods as Low Demand Causes Supply Chain Congestion

Persistent low demand in the fast-moving consumer goods (FMCG) sector is causing supply chain congestion, leading to an increase in inventory days, with stocks accumulating at distributors.

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Dabur to set new manufacturing unit in South India in less than a year, says CEO Mohit Malhotra

FMCG and ayurvedic products manufacturer Dabur is planning to set up a new manufacturing unit or factory in South India in less than a year’s time to scale up its business in the region.

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Annapurna Swadisht gears up for 50% CAGR over next 4-5 years to Rs 1,000 cr

Annapurna Swadisht Ltd on Sunday said it aims to double revenue in 2023-24 to over Rs 300 crore and maintain a compound annual growth rate (CAGR) of at least 50 per cent over the next 4-5 years.

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Why D2C brands are going offline

Direct-to-consumer (D2C) brands, which were born on the internet and made a mark there, are now rapidly launching exclusive retail stores and selling through modern trade and neighbourhood stores. Names such as Mamaearth, Nykaa, Sugar Cosmetics, Bombay Shaving Company, Boat and Boult are only a few examples of digital-first brands that have migrated offline.

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