Lockdown in various states disrupts FMCG business momentum
Even though the country is going through Unlock 2.0, various state governments have extended the lockdown period due to the fast-spreading COVID-19 pandemic. These include Assam, West Bengal, Tamil Nadu, Bengaluru, and Bihar, besides several cities like Pune, Bengaluru, etc are also under lockdown due to growing coronavirus infection. Consequently, FMCG firms’ business has witnessed severe disruptions due to their inability to sustaining their supply chains.
Although FMCG sales had recovered to pre-COVID-19 times in June, their sales growth seems to be uncertain due to localised lockdown in several states, cities across India. The scenario has severely impacted their manufacturing and supply across key markets. With malls remaining shut in most of the tier-I-II cities due to intermittent lockdown, FMCG firms’ business is witnessing negative growth. Even in the cities where Unlock-2.0 is in process, malls are facing a huge dip in footfall.
Both rural and urban sales in India were on the path to recovery last month, but the intermittent lockdowns in various states have disturbed their sales growth. However, the recovery in sales in semi-urban and rural quarters have been much faster and the neighborhood Kirana stores have considerably scored over modern trade outlets, according to Nielsen data.
