FMCG volume growth in revival mode?
In 2014, FMCG
volume growth may get a leg up from a low base effect but its effect on
sales growth may get dented by the opposing pull of a high base effect
on price-led growth.
In 2013, the fast-moving consumer goods (FMCG) industry’s
sales growth by volume rose by just 1%. Sales growth by value, however,
gained 9% because of higher prices.
But falling volume growth points to the fact that price-led growth cannot be sustained for long.
The December quarter saw a glimmer of hope, according to the Nielsen Co.’s data.
Volume growth has reversed a slide that had begun in the
December 2012 quarter although it is early to call it a recovery.
Further help may be at hand from the base effect.
In 2014, volume growth may get a leg up from a low base
effect but its effect on sales growth may get dented by the opposing
pull of a high base effect on price-led growth.
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