{"id":117807,"date":"2021-07-07T10:42:34","date_gmt":"2021-07-07T10:42:34","guid":{"rendered":"https:\/\/fin2me.com\/?p=117807"},"modified":"2021-07-07T10:42:34","modified_gmt":"2021-07-07T10:42:34","slug":"why-urban-poor-remain-a-worry-for-fmcg-companies","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/why-urban-poor-remain-a-worry-for-fmcg-companies\/","title":{"rendered":"Why urban poor remain a worry for FMCG companies"},"content":{"rendered":"

30 per cent of total sales comes fr­om the urban poor, especially for food firms.<\/strong><\/p>\n

<\/strong><\/p>\n

As the second wave of the pandemic ebbs and the daily caseload falls, the struggles of the urban poor ha­ve come into focus.<\/p>\n

Many have su­f­f­ered income and job losses after two su­c­c­­e­­ssive waves.<\/p>\n

The second wave, in pa­­­r­t­icular, has seen the poor being hit hard on account of lack of medical and financial help.<\/p>\n

For the fast-moving consumer goods (FMCG) companies this has meant that an important segment is under severe distress.<\/p>\n

To put things in perspective, urban areas contribute 60-65 per cent to an FMCG firms’ total sales.<\/p>\n

The rest 35-40 per cent comes from rural areas, acco­rding to market research agency NielsenIQ.<\/p>\n

According to experts, half of urban sal­es or 30 per cent of total sales comes fr­om the urban poor, especially for food firms.<\/p>\n

While home and personal care companies get 20 per cent of their total sales or a third of their urban sales from the ur­ban poor.<\/p>\n

Which is why the lack of policy measures for the urban poor hit by the pandemic has been concerning for companies.<\/p>\n

“There are no social security or em­ployment guarantee schemes for the urban poor, which exists for the rural poor.<\/p>\n

“Last year, there was a major reverse migration of the poor in urban areas to their villages because of the disruption caused by Covid.<\/p>\n

“There is certainly some policy-level support that is needed to help the urban poor,” Sunil Kataria, chief executive officer (CEO), India & SAARC, Godrej Consumer Products (GCPL), said.<\/p>\n

NielsenIQ had indicated in May that it was monitoring the drop in consumption closely due to the pandemic across key segments.<\/p>\n

The Rs 4.3-trillion FMCG market had closed the March 2021 quarter with an overall growth rate of 9.4 per cent.<\/p>\n

But given how strong the second wave was, said industry experts, the June quarter may see a drop in FMCG growth rate because of localised lockdowns through April and May.<\/p>\n

The growth rate for the April-June period, according to industry estimates, is likely to be in the region of 5-6 per cent, though the July-September period may see a rebound, touching levels of 10-15 per cent in terms of FMCG growth rate.<\/p>\n

Some senior executives say the unlock process does hold hope for the urban poor, since resumption of economic activity will restore jobs and therefore incomes for many.<\/p>\n

“I see the unlock process offering some comfort for the poorer sections in the urban areas.<\/p>\n

“As businesses resume, the requirement for people will grow, giving some respite to the poor, many of whom are daily wage earners.<\/p>\n

“At the same time, states such as in Maharashtra and Delhi have announced welfare measures rec­ently for the urban poor,” Mayank Shah, senior category head, Parle Products, said.<\/p>\n

Maharashtra, for instance, had ann­ounced a Rs 5,746-crore relief package for the economically weaker sections of the state in April, including providing free food, grants to construction workers, rickshaw drivers, and pension scheme beneficiaries.<\/p>\n

Delhi announced free ration, education, and financial aid for the Covid­ -affected in May and the Centre too ann­ounced distribution of free foodgrains to the poor across the country till November.<\/p>\n

Mohit Malhotra, CEO, Dabur India, said FMCG companies may push more low-unit packs into areas dominated by the urban poor.<\/p>\n

“Companies push small packs into rural areas and large packs into urban areas.<\/p>\n

“But given the stress that the urban poor have witnessed with two successive Covid-19 waves, low-unit packs could be pushed even more into areas where the urban poor are dominant,” he said.<\/p>\n

Photograph: PTI Photo<\/strong><\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

30 per cent of total sales comes fr­om the urban poor, especially for food firms. As the second wave of the pandemic ebbs and the […]<\/p>\n","protected":false},"author":3,"featured_media":117806,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"yoast_head":"\nWhy urban poor remain a worry for FMCG companies - Fin2me<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fin2me.com\/business\/why-urban-poor-remain-a-worry-for-fmcg-companies\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why urban poor remain a worry for FMCG companies - Fin2me\" \/>\n<meta property=\"og:description\" content=\"30 per cent of total sales comes fr­om the urban poor, especially for food firms. As the second wave of the pandemic ebbs and the [...]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/fin2me.com\/business\/why-urban-poor-remain-a-worry-for-fmcg-companies\/\" \/>\n<meta property=\"og:site_name\" content=\"Fin2me\" \/>\n<meta property=\"article:published_time\" content=\"2021-07-07T10:42:34+00:00\" \/>\n<meta name=\"author\" content=\"Mark\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/fin2me.com\/wp-content\/uploads\/2021\/07\/Why-urban-poor-remain-a-worry-for-FMCG-companies.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mark\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/fin2me.com\/business\/why-urban-poor-remain-a-worry-for-fmcg-companies\/\",\"url\":\"https:\/\/fin2me.com\/business\/why-urban-poor-remain-a-worry-for-fmcg-companies\/\",\"name\":\"Why urban poor remain a worry for FMCG companies - Fin2me\",\"isPartOf\":{\"@id\":\"https:\/\/fin2me.com\/#website\"},\"datePublished\":\"2021-07-07T10:42:34+00:00\",\"dateModified\":\"2021-07-07T10:42:34+00:00\",\"author\":{\"@id\":\"https:\/\/fin2me.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a\"},\"breadcrumb\":{\"@id\":\"https:\/\/fin2me.com\/business\/why-urban-poor-remain-a-worry-for-fmcg-companies\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/fin2me.com\/business\/why-urban-poor-remain-a-worry-for-fmcg-companies\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/fin2me.com\/business\/why-urban-poor-remain-a-worry-for-fmcg-companies\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/fin2me.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Business\",\"item\":\"https:\/\/fin2me.com\/category\/business\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Why urban poor remain a worry for FMCG companies\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/fin2me.com\/#website\",\"url\":\"https:\/\/fin2me.com\/\",\"name\":\"Fin2me\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/fin2me.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/fin2me.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a\",\"name\":\"Mark\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/fin2me.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/39b72719fb75a2d3c7d7695026648602?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/39b72719fb75a2d3c7d7695026648602?s=96&d=mm&r=g\",\"caption\":\"Mark\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Why urban poor remain a worry for FMCG companies - Fin2me","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/fin2me.com\/business\/why-urban-poor-remain-a-worry-for-fmcg-companies\/","og_locale":"en_US","og_type":"article","og_title":"Why urban poor remain a worry for FMCG companies - Fin2me","og_description":"30 per cent of total sales comes fr­om the urban poor, especially for food firms. As the second wave of the pandemic ebbs and the [...]","og_url":"https:\/\/fin2me.com\/business\/why-urban-poor-remain-a-worry-for-fmcg-companies\/","og_site_name":"Fin2me","article_published_time":"2021-07-07T10:42:34+00:00","author":"Mark","twitter_card":"summary_large_image","twitter_image":"https:\/\/fin2me.com\/wp-content\/uploads\/2021\/07\/Why-urban-poor-remain-a-worry-for-FMCG-companies.jpg","twitter_misc":{"Written by":"Mark","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/fin2me.com\/business\/why-urban-poor-remain-a-worry-for-fmcg-companies\/","url":"https:\/\/fin2me.com\/business\/why-urban-poor-remain-a-worry-for-fmcg-companies\/","name":"Why urban poor remain a worry for FMCG companies - Fin2me","isPartOf":{"@id":"https:\/\/fin2me.com\/#website"},"datePublished":"2021-07-07T10:42:34+00:00","dateModified":"2021-07-07T10:42:34+00:00","author":{"@id":"https:\/\/fin2me.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a"},"breadcrumb":{"@id":"https:\/\/fin2me.com\/business\/why-urban-poor-remain-a-worry-for-fmcg-companies\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/fin2me.com\/business\/why-urban-poor-remain-a-worry-for-fmcg-companies\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/fin2me.com\/business\/why-urban-poor-remain-a-worry-for-fmcg-companies\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/fin2me.com\/"},{"@type":"ListItem","position":2,"name":"Business","item":"https:\/\/fin2me.com\/category\/business\/"},{"@type":"ListItem","position":3,"name":"Why urban poor remain a worry for FMCG companies"}]},{"@type":"WebSite","@id":"https:\/\/fin2me.com\/#website","url":"https:\/\/fin2me.com\/","name":"Fin2me","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/fin2me.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/fin2me.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a","name":"Mark","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/fin2me.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/39b72719fb75a2d3c7d7695026648602?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/39b72719fb75a2d3c7d7695026648602?s=96&d=mm&r=g","caption":"Mark"}}]}},"_links":{"self":[{"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/posts\/117807"}],"collection":[{"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/comments?post=117807"}],"version-history":[{"count":0,"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/posts\/117807\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/media\/117806"}],"wp:attachment":[{"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/media?parent=117807"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/categories?post=117807"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/tags?post=117807"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}