Key Points
Consumer goods companies and automakers are hoping that the elections in five states next month, followed by the general elections in April-May 2024, will fuel a robust recovery in rural demand...
Executives at these companies say elections typically lead to an increase in government initiatives, which, in turn, spur rural incomes and liquidity...
Elevated food prices and below-average monsoons have delayed a sustained rebound in the rural economy, Marico, Dabur and Godrej Consumer Products noted in their September quarter earnings' calls..
All of these lead to increased disposable incomes.. . "Be it assembly or general elections, they have a positive impact on auto retail," said Nikunj Sanghi, past president of Federation of Automobile Dealers Association..
Mayank Shah, senior category head at biscuits maker Parle Products, said, "We are very hopeful that elections-led stimuli such as incentives and bonuses will lead to higher demand." Shah said rallies and canvassing are healthy consumption events..
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Inside the 2024 shopping bag: Where is the Indian consumer headed?
02, Jan, 24Indian Consumers: While the affluent segment gravitated toward luxury apartments, high-end cars, and premium consumer goods, lower-income brackets grappled with inflation and rural hardships. Sales surged for luxury items, bustling malls and restaurants, alongside a spike in hotel room rates due to heightened demand. Conversely, FMCG companies faced stagnation in selling everyday items like biscuits, soaps, shampoos, and perfumes, yearning for increased consumption rates.