FMCG outlook:

in Product

FMCG outlook:

The FMCG sector has traditionally grown at a very fast rate and has generally out performed the rest of the industry. Over the last one year, however the rate of growth has slowed down and the sector has recorded sales growth of just five per cent in the last four quarters. The outlook in the short term does not appear to be very positive for the sector.

Rural demand is on the decline and the Centre for Monitoring Indian Economy (CMIE) has already down scaled its projection for agriculture growth in the current fiscal. Poor monsoon in some states, too, is unlikely to help matters. Moreover, the general slowdown in the economy is also likely to have an adverse impact on disposable income and purchasing power as a whole. The growth of imports constitutes another problem area and while so far imports in this sector have been confined to the premium segment, FMCG companies estimate they have already cornered a four to six per cent market share. The high burden of local taxes is another reason attributed for the slowdown in the industry At the same time, the long-term outlook for revenue growth is positive. Give the large market and the requirement for continuous repurchase of these products, FMCG companies should continue to do well in the long run. Moreover


? The retailers should be educated about the various brands ofproduct and about their use.

? The retailers should be taken seriously and the company should give more attention to them.

? The company should work at making a good name for itself in the market.

? The company should advertise its products well to keep the customers well informed about the products.

? The  newly launched product of the company should be advertised as soon as possible so that the customers get informed about the product. This would also lead to more customer enquiries for the product.

? Since most of the retailers are buying their stocks from the company’s distributors the

company should work at giving better service to the retailers.

? The company’s distributors should regularly visit the shops and should be courteous with the retailers.

? The company’s distributors should work at maintaining better relations with the retailers.

? The company should keep its products in display at the retail shops in order to increase sales of its products.

? There should be more advertisements of products so that the customers are well informed about the products.

? For the retailers to start suggesting the products to the customers there should be more

customer enquiries and more sales for these products. For this there should be more ads for the products.

? The company should work at maintaining good quality of its products.

? The retailers should be given some incentives in the form of either more profit or more

schemes or better service or cash discounts on huge purchases or schemes or credit facility or commissions, regular supply etc..

? The company should try to do something regarding the imitationto the brands by shops


? The company should continue the sales promotion activities. so it is able to capture a good market share for itself.

? The company should go for poster ads and hoardings in addition to the TV and radio ads.

 R.yuvarani  M.Phil Scholar periyar University Salem-11

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R.yuvarani M.Phil Scholar periyar University Salem-11

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This article was published on 2009/07/16