India’s retail and FMCG landscape closed the week on a dynamic note, marked by strong online momentum and evolving consumer behaviour. Black Friday sales jumped 27 percent over last year, led by food, beauty and home categories, underscoring how global shopping events are becoming mainstream in India. Yet beneath the surface, FMCG majors are experiencing a disconnect: revenues are rising through price hikes and premiumisation, but actual shopper numbers are slipping, particularly in rural markets where downtrading continues.
Festive retail is also shifting gears, with India firmly entering the “millisecond economy” as quick commerce grows 120 percent and instant fulfilment becomes the new competitive benchmark. While GST-related disruptions softened FMCG growth in Q2, analysts expect rural India to drive a fightback in the coming months. Meanwhile, legacy FMCG firms are accelerating the introduction of global brands to meet rising aspirations and keep pace with fast-moving digital-first challengers.
Click on the headings below for insights on how these trends are shaping India’s retail landscape…
1. Black Friday boost: Online sales in India jump 27%; FMCG, beauty & personal care leads growth
Black Friday sales in India recorded a strong rise this year, with overall order volumes growing 27% compared to 2024. The surge was driven largely by healthy food products, beauty and personal care, and home categories. The findings highlight the increasing popularity of the global shopping event in India.
2. Why India’s FMCG giants are growing revenue but losing customers
India’s FMCG giants are seeing revenue growth because they’ve increased prices and premiumised portfolios, but actual product volumes are barely growing — in some cases even shrinking — as consumers, especially in rural India, cut back or downtrade. This disconnect shows that while companies look healthier on paper, they’re losing shoppers at the ground level, signalling weak real consumption and a fragile demand recovery.
3. India’s Festive Retail Enters the Millisecond Economy as Quick Commerce Grows By 120 Pc
India’s festive retail season is witnessing a major shift, accelerated by digital-first behaviours, faster fulfilment, and rising consumer expectations. According to a new report by LS Digital, the country has entered the “Millisecond Economy,” a space where shoppers expect actions, decisions, and deliveries to happen almost instantly.
4. GST hit slows FMCG in Q2, but rural India readies a fightback
India’s fast-moving consumer goods (FMCG) sector saw a brief moderation in growth during the second quarter of financial year 2026 (FY26) due to the impact of revised GST rates, but industry players remain optimistic about a strong revival in the latter half of the fiscal, according to a latest sector update by Anand Rathi Research.
5. FMCG giants race to bring in global brands
Established FMCG companies in India — such as Hindustan Unilever (HUL), PepsiCo India, ITC, Marico and Godrej Consumer Products — are increasingly importing or launching global / foreign brands (like gourmet snacks or premium skincare) to tap rising incomes and changing tastes among Indian consumers. At the same time, this push reflects a broader shift: new-age and D2C brands are growing rapidly, forcing legacy players to revamp portfolios and embrace premiumisation or face losing market share.
2 minute read
