InvestorQ : Is it true that Nielsen has warned about weak rural demand for FMCG sales?
Khushi Patel made post

Is it true that Nielsen has warned about weak rural demand for FMCG sales?

Answer
image
Dhwani Mehta answered.
1 month ago
Follow

Nielsen has pegged growth of FMCG sales in the Mar-21 quarter at 9.4% compared to 7.3% in Dec-20 quarter. This was due to a mix of pent-up demand and festive sales. Also, COVID-19 spiked demand for hygiene products like personal care products, home care and similar products meant to enhance physical and household hygiene. But June could be an issue.

The Jun-21 quarter is estimated to be negatively impacted by COVID 2.0. As per Nielsen, the proliferation of COVID 2.0 in rural India creates a new challenge for FMCG sales which still derives about 50% of its sales from rural areas. Nielsen expects weak rural demand to drive FMCG demand to grow in Jun-21 quarter at low single digits.

2 Views