Key Points
Pay hikes in 2024 for most companies in the consumer space are likely to be in high single digits, a tad lower than last year, impacted by delayed recovery in demand, particularly in rural areas, and intense competition from regional players...
This is in contrast to the previous year when average pay hikes were better, after two years of pandemic-induced disruptions, executives said.. Projected salary increments in the consumer sector continue to be stable around the 9.5% range in line with the last three years, however, slightly lower than double-digit increments that were projected last year, given the slowdown in rural demand, said Roopank Chaudhary, partner at Aon India...
Given this and the larger business realities, increments are expected to be in the region of 8.5-8.7% for the consumer sector, he said.. Building leadership bandwidth to deal with the increasingly volatile market is appearing as a critical need in the industry, experts said...
Increments for this group are also more aggressive at approximately 1.8x of average increments, he said.. FMCG sales grew just 2% by value in 2023, down from 7% in 2022, dragged down by slowing rural sales, erratic monsoons, and reduction in edible oils prices, which impacted value growth, according to retail intelligence firm Bizom...
Key downside risks are continued delayed recovery in demand and irrational competition, ICICI Securities wrote in a report on January 20 after Indias largest consumer goods maker Hindustan Unilever (HUL), which makes Dove soap and Brooke Bond tea, reported flat December quarter growth..
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