Indian consumers emerge much hungrier after second wave of COVID-19
The July-September quarter saw a 46% growth in total sales by value, according to the latest report from Bizom, a sales automation company that deals with 7.5 million retail stores.
This is compared to an increase of 6% in the corresponding quarter of last year, which marked a recovery in the segment that was affected due to supply and manufacturing constraints that began at the end of March 2020.
“The lockdown was not as tight and the opening that followed saw sales rebound rapidly in the quarter despite a strong base last year. However, we expect a lackluster December quarter due to alternative and homemade food products during the holiday season, ”Krishnarao said. Buddha, Senior Category Manager at Parle Products, India’s largest food company.
In addition, relatively moderate restrictions helped stabilize the supply and distribution of commodities during the second wave, with an immediate increase in economic activity following the easing of restrictions. Local control measures taken by state administrations helped ensure strict restrictions only in pockets that had high infection rates.
Discretionary categories such as confectionery and packaged food were badly hit last year, but these have seen the strongest growth this year, Bizom said.
“The only category that appears to be under any growth pressure is the year of home care where, due to the decline in Covid cases, obsessive attention is shifting from health and hygiene products,” he said. said Akshay D’Souza, head of growth and ideas at Mobisy Technologies, which owns Bizom.
Out-of-home consumption of consumer staples has also rebounded since August with increased mobility, the opening of offices, hotels, restaurants and an increase in travel and social events.
“Sales have been strong over the past few months, but hotels, restaurants and caterers have rebounded strongly, resulting in higher growth both sequentially and year over year. The only challenge is to increase the prices of raw materials as it will be difficult to pass on. higher input cost for end consumers, ”said RS Sodhi, managing director of the Gujarat Cooperative Milk Marketing Federation, maker of Amul chocolates and ice cream.
The companies also said the lessons from last year helped ensure consumers didn’t load the pantry this time around, which meant steady growth in every consecutive month. In an investor update on Saturday,
, the operator of the DMart retail chain, said its stand-alone sales grew 47% year-over-year in the second quarter.