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Tag: Godrej Consumer Products

  • TVC campaign conceptualised by Lightbox agency

    Godrej launches Cinthol Foam Bodywash with TVC

    Godrej Consumer Products Ltd (GCPL) has introduced foam-based bodywash format under its Cinthol brand. Named as Cinthol Foam Bodywash, the launch is supported by a TVC campaign conceptualised by Lightbox, the in-house creative studio of Godrej Consumer Products Ltd.

    Speaking about the launch, Neeraj Senguttuvan, Head – Marketing (Personal Care), Godrej Consumer Products Ltd (GCPL), said: “The Indian bodywash market is growing as consumers seek to enhance their daily routines with a more sensory and luxurious shower experience. Our latest innovation, Cinthol Foam Bodywash, was developed to meet this demand, making luxurious bathing an everyday indulgence. This innovative formula dispenses instant foam, creating a rich lather that effectively cleanses and leaves the skin feeling exceptionally clean and pampered.

    Added Gaurav Kumar, Lead Creative Strategist – Lightbox, Godrej Consumer Products Ltd (GCPL: “The TVC showcases a fun video of a girl and monkeys enjoying the foam body wash together, highlighting how easily it rinses off. It emphasizes the ‘soap in a bottle’ format, which makes it convenient to use anywhere without the need for a loofah. This campaign reflects our commitment to engaging storytelling that connects with our audience in a fun and relatable way.”

  • Set up booths to enable consumers experience the freshness of the soap

    Cinthol uses virtual reality to boost brand in AP and TG

    By Our Staff

     

    Cinthol soap has launched a new campaign for Andhra Pradesh and Telangana. The brand set up booths equipped with virtual reality headsets that enable consumers from these areas to experience the freshness of Cinthol via innovative technology. This creative campaign is a step towards connecting with consumers while offering a unique technology in villages. This has fostered people to strengthen the brand’s affinity with freshness.

     

    Commenting on this consumer outreach initiative, Somashree Bose Awasthi, Chief Marketing Officer, Godrej Consumer Products (GCPL) said: “In Andhra Pradesh and Telangana Our aim was to connect with communities and make them Cinthol’s lemony freshness with a touch of technology and virtual reality. Through this Initiative, Cintholis striving to innovate the manner in which brand communicate with consumers.  We are striving to leverage technology to provide a novel Fresh experience in towns, villages and give our consumers a meaningful connection to Cinthol.”

     

  • The unit will house the Godrej Consumer Products account for traditional and digital media

    Saif Shaikh is now COO, Madison Media Pinnacle

    By Our Staff

     

    Saif Shaikh
    Saif Shaikh

    Madison Media has just announced the promotion of Saif Shaikh to Chief Operating Officer, Madison Media Pinnacle. The unit will house the Godrej Consumer Products account for traditional and digital media.

     

    Said Vikram Sakhuja, Partner & Group CEO, Madison Media & OOH: “I am delighted to announce that we are promoting Saif Shaikh to COO – Madison Media Pinnacle. He will now lead the integrated remit of our key Client Godrej. Over the past few years Saif has consistently delivered on the biggest challenges given to him thanks to his hands on, passionate, inclusive and never say die approach. We congratulate Saif on his promotion.”

     

    Added Shaikh: “I’m happy to lead Madison’s foremost client, Godrej. I look forward to leading the integrated account and further strengthening the brand and helping it achieve its outcomes.”

     

  • The TVC is conceptualised by conceptualized by Creativeland Asia

    Godrej Expert Rich Creme introduces brand campaign

    By A Correspondent

     

    Godrej Expert Rich Crème from Godrej Consumer Products Limited, has unveiled a fashion range with three shades – Molten Gold, Copper Brown and Cherry Red for the West Bengal market. To promote the new range in ongoing festive season in Bengal, the brand has unveiled a new campaign with a new TVC. With the start of the festive season with Durga Puja going upto Diwali, the brand decided to launch Godrej Expert Rich Crème Fashion range exclusively in West Bengal.

     

    Conceptualised by Creativeland Asia, the film opens with actress Nusrat Jahan and a friend prepping for a party.

     

    Speaking about the brand campaign, Sunil Kataria, CEO – India and SAARC, Godrej Consumer Products (GCPL), said: “West Bengal is an important market for Godrej Expert Rich Crème. Festivities have commenced with occasions like Durga Puja. Thus, to delight our consumers during the festive season, we have launched our new Fashion Range exclusively in the state. The new TVC communicates how Godrej Expert Rich Crème Fashion shades provide easy solutions for a fashionable festive hair makeover. The three new shades are experimental, trendy and a much-needed change from the usual palette of blacks and browns. With the launch of new Fashion range, we are making the brand more contemporary and relevant with today’s lifestyle while infusing a youthful appeal.” a complete makeover at home with high quality and nourishing crème hair colour.

     

     

  • Series of contextual digital films launched across platforms to drive awareness

    Godrej Aer Twist unveils #TwistZarooriHai campaign

    By A Correspondent

     

    Godrej Aer Twist has unveiled its new campaign #TwistZarooriHai. Through this campaign, the brand aims to build awareness through a series of digital films with contextual messaging during the cricket season.

     

    Conceptualised by Creativeland Asia, the digital films centre around two cricket-struck fans and one Godrej Aer Twist, in a car.

     

    Speaking on the digital campaign, Sunil Kataria, CEO – India and SAARC, Godrej Consumer Products said: “Cricket is the most sought after sport in India. Today, national and global cricket tournaments are seeing ever increasing growth in terms of viewership and engagement with the audience.  Be it on television or digital platforms streaming matches, cricket brings together people who form our target audience. #TwistZarooriHai digital films highlight Godrej Aer Twist as an integral part of people’s lives using the cricket context. Today, Godrej Aer Twist is a market leader in the car freshener category. Through contextual campaigns like these, we aim to increase category penetration by driving relevance for car fresheners.”

     

    Commenting on the campaign, Anu Joseph, Chief Creative Officer, Creativeland Asia Group said: “Godrej Aer has always had a certain quirk in its communication, and is constantly looking for topics that are relevant to its TG, to be associated with. Cricket is going to be the most talked about subject for the next few months. And Aer has found for itself a way to enter the conversation in its quirky, unabashed manner.”

     

     

  • Through this film the brand has used humour as a creative route to create awareness about pest infestation

    Hit unveils campaign around Diwali

    By A Correspondent

     

    Pest repellant Hit has launched a video that focuses on pre-Diwali house cleaning rituals in every Indian household..

     

    Said Sunil Katatria, CEO – India & SAARC, Godrej Consumer Products: “Godrej Consumer Products has always strived to make the lives of consumers brighter and better. Keeping this philosophy at the core, brand HIT has used a very quirky and creative approach to deliver a very serious message about cockroach infestation and its preventive measures. This humorous video is a fun way to coveys the message to the consumers. While consumers use various solutions to drive away these pests, that make them feel the problem is completely solved but in reality, roaches hide in remote and difficult corners of our home posing a serious threat to health and wellbeing and Lal Hit is an exceptionally convenient way of killing even the hidden cockroaches. It reaches the corners of the house through its nozzle to kill even the hidden roaches making the house infestation free.”

     

    Added George Kovoor, Group Creative Director, Ogilvy: “Godrej Hit has always delivered a very serious message in a light-hearted vein.  Carrying this style forward, we partnered with a maid turned stand-up comedian, Deepika Mhatre to create a content piece that is apt for this season, especially during the days approaching Diwali. Deepika skillfully weaves in the benefits of Lal Hit into her act and seamlessly delivers a product message using her signature brand of humour and style.”

     

     

  • Sunil, has led the Society in the past year to newer heights drawing support from his colleagues in the Executive Council, members and all fraternity entities

    Sunil Kataria appointed Chairman of The Indian Society of Advertisers

     

    The newly elected Executive Council of the Indian Society of Advertisers (ISA) met on September 15 and re-elected Sunil Kataria, Business Head – India and SAARC, Godrej Consumer Products Limited as Chairman of the ISA.

     

    On his election for second consecutive term as the Chairman of the ISA, Kataria said: “We would create further value proposition to the ISA’s ascending status in the industry.  We would nurture the partnerships that we have built over decades and deliver incremental benefits to the advertisers and other stake holders. I am confident that the advertiser community would have greater times ahead. I look forward to having continuous support of all members towards adding value to the unique status of the ISA in this country.”

     

    Other members of the Executive Council include: Atul Agrawal, Senior Vice President – Corporate Affairs, Group Corporate Communications, Tata Services Limited; Anuradha Aggarwal, Chief Marketing Officer, Marico Limited; Abraham Mathew Alapatt, President & Group Head-Marketing, Service Quality, Financial Services & Innovation, Thomas Cook (India) Limited; Narendra Ambwani, Director, Agro Tech Foods Limited; Siddhartha Banerjee, Executive Vice President – Marketing, Vodafone India Limited; Ajoy H. Chawla, Sr. Vice President, Chief Strategy Officer, Titan Company Limited; J. C. Chopra, Advisor, Anant Healthcare Technology Solutions (P) Ltd.; Ravi A. Desai, Director, Brand & Mass Marketing, Amazon Seller Services Pvt. Ltd.; Paulomi Dhawan, Strategic  Advisor, Raymond Limited; Sonali Dhawan, Marketing  Director, Procter & Gamble Hygiene and Health Care Limited; Chandru Kalro, Managing Director, TTK Prestige Limited; Sandeep Kaul, Divisional Chief Executive – India Tobacco Division, ITC Limited; Sandeep Kohli, Executive Director – Personal Care, Hindustan Unilever Limited; Beena Koshy, Executive Vice President, Exports, Bajaj Electrical Limited; Bharat V. Patel, Independent Director, Aditya Birla Sun Life Asset Management Company Ltd.; Prashant Peres, Director Marketing Chocolate, India, Mondelez India Foods Private Limited; Ramakrishnan Ramamurthi, Vice Chairman, Joint MD & Group CEO, Polycab Wires Pvt. Ltd.; Amit Tiwari, Vice President – marketing, Havells India Ltd.; Brahm Vasudeva, Chairman, Hawkins Cookers Limited

     

     

  • There is a serious and conscious effort to make sure that their family is protected from disease

    Lowe Lintas unveils new campaign for ‘Lal Hit’

    By A Correspondent

     

    Following on with its brand messaging of cockroaches spread diseases, Lowe Lintas Mumbai has unveiled a new campaign for its product LAL HIT. Taking a different approach this time around, the brand seeks to target women who depend on chalk and home remedies to solve the “roach” issue.

     

    Women today, are extremely particular about their housekeeping etiquettes. There is a serious and conscious effort to make sure that their family is protected from disease. While they are aware that the presence of cockroaches at home is not a healthy sign, their belief is that their current solution, i.e., chalk, boric powder, etc. is good enough to keep cockroaches at bay and hence she has no reason to opt for a change. However, cockroaches have their own hideouts and these solutions are ineffective in killing these cockroaches that often cause various illnesses.

     

    With this as the driving point, the new campaign gives the women a compelling reason for adopting LAL HIT, which with its unique seek-and-kill applicator reaches even the difficult and hard-to-reach corners and kills the hidden cockroaches.

     

    Sharing his thoughts on the new campaign, Ajay Dang, Head Marketing – Home Care, Godrej Consumer Products Limited said, “A mother always does her best to keep her family and child healthy. Through her regimen and choice of solutions she achieves this goal every day. Poor solutions and lack of information at times gives her a false sense of security.  And her effort fails despite her trying her best.

     

    The communication is simple and straight forward highlighting the fact that cockroaches spread diseases like food poisoning, diarrhea and dysentery. The key idea was to inform the mother on how solutions like chalks and home remedies are ineffective in killing hidden cockroaches and therefore put her family health at risk.”

     

    Elaborating on the creative approach that was followed for the campaign, Arun Iyer – National Creative Director, Lowe Lintas + Partners said, “While the brief was very direct and clear, the task to make people change their current regimen is always difficult, especially in a low involvement category. With our target group (mothers), we realized that it’s not just the kid’s health and wellbeing that is entrusted to her, but even the ill health of the child is something she is held responsible for. So our creative idea puts the mother at the center of the film and amplifies how she gets blamed for the child falling ill, whereas the real reason is not her but her reliance on ineffective cockroach solutions.”

     

    The campaign has just gone live and will be played across major entertainment, news and sports channels in India. The on-air campaign will be ably supported by a plethora of activities on other media platforms like print, radio, digital, etc soon.

     

  • Carat Fresh Rural, Aegis' rural marketing specialist for the Indian market has Bayer Crop Science, Godrej Consumer Products, Pidilite, Mahindra & Mahindra and Sony Max among its clients

    Aegis Media launches rural marketing cell

    By Ravi Balakrishnan

     

    Aegis Media has launched Carat Fresh Rural, a rural marketing specialist for the Indian market. The agency will operate as a separate division within Carat Fresh, Aegis’s activation wing. After a soft launch, Carat Fresh Rural counts Bayer Crop Science, Godrej Consumer Products, Pidilite, Mahindra & Mahindra and Sony Max among its clients. It is headed by Keshav Chandorkar, whose previous experience includes stints with Linterland (the rural division of Lintas) and Dun & Bradstreet. The current team strength is 30 people across seven offices. Carat Fresh Rural will also be working with 1,500 operators who are in charge of implementing rural marketing programmes.

     

    Significantly, Aegis is starting a pure play rural agency at a time when many in the business are opting out of the segment or merging it with urban activation. Rural marketing is expensive and operations oriented, demanding remarkable levels of financial commitment. Besides many marketers with extensive distribution have started using their own networks and local vendors to reach rural segments.

     

    Ashish Bhasin

    Ashish Bhasin, chairman – Aegis, India, remains bullish: “Many categories are near saturation in urban areas. Rural markets make sense given good monsoons, and government schemes that provide greater disposable income.” He believes this market has been very poorly serviced by the advertising industry but has potential. “The organised part of rural can be half or more than half the mainstream market, valued at between Rs 25 and Rs 30 crore. It is full of challenges but the pot of gold at the end is humungous.”

     

    Having a team full of veterans, Mr Bhasin intends avoiding many of the pitfalls of rural marketing. One of the largest misconceptions is assuming rural consumers can be served by a dumbed down version of urban communication. The other is underestimating the importance of implementation. Carat intends solving some of these problems via technology.

     

    Source:The Economic Times

    Copyright © 2013, Bennett, Coleman & Co. Ltd. All Rights Reserved

    Licensed to republish

     

  • The key challenge for any digital campaign is to identify the right target audience and to creatively engage with them, says Sunil Kataria, Executive VP, Marketing and Sales, Godrej Consumer Products

    Godrej aims for digital connect with consumers

    By Meghna Sharma

     

    As more and more brands enter the already cluttered market today, the challenge for any brand is not only to reinvent itself but also to gain and retain new customers.

     

    Companies are invading the digital space as they see a lot of potential in the medium to tap their audiences. Selling the brand or product is no longer paramount – the aim is to develop and sustain a relationship over a period of time. And as youth are increasingly spending more time on social media, promoting a brand/product/service digitally serves the purpose of attracting and sustaining.

     

    #InViratsHead, #MakesMeAlive, #colouryourfriends and #firsteverfragranceapp are just a few hashtags of the various digital campaigns Godrej has launched lately. The company re-invented itself and has been implementing innovative techniques on various forms of media to drive awareness and establish brand tonality and brand connect with urban TG.

     

    The aer Twitter campaign #colouryourfriends and #firsteverfragranceapp garnered more than 12,500 tweets, reaching out to 6.7 million people and creating more than 47 million impressions in a span of three days.

     

    MxMIndia spoke to Sunil Kataria, Executive VP, Marketing and Sales, Godrej Consumer Products Limited (GCPL) on the insight behind their latest campaigns.

     

    Lately, Godrej has launched a lot of campaigns digitally. What has been the thought process behind them?

    Godrej as a brand believes in building a connect with the consumers at every step across platforms. Companies across sectors are leveraging social media to connect with consumers to get instant feedback. For companies it has not only been to sell a brand/product to the consumers but to develop and sustain a relationship over a period of time. The youth are increasingly being spending more time on social media and a lot of their conversations on this medium influence their shopper decisions. Promoting a brand/product/service digitally serves the purpose of attracting and sustaining interest among their consumers and it could be done in innovate and engaging ways. The Godrej campaigns for Cinthol and aer have been the most trending on Twitter lately.

     

    How do you see the digital platform help the brand to rebrand itself in the market?

    With the growth of internet and rising popularity of social media among younger audience it is imperative for brands to create a very significant presence in the digital space. Also, the increasing use of smart phones has significantly reduced consumer consumption of traditional mediums of TV and paper. The digital medium is an exciting platform for brands as they communicate with the consumer directly and the consumer can share his experience with the brand. Apart from that, key influencers/celebrities who are a part of a campaign also help to reach out to a larger pool of audience since the fan following of these influencers get acquainted with the brand through the campaign. For example, fans of Virat got acquainted with the Cinthol brand through the #InViratsHead campaign.

     

    How much is the budget for the digital platform?

    The budget is 2 percent of total ATL budget for digital media.

     

    Apart from digital, what is the marketing mix of the brand?

    Godrej aer is promoted through a 360-degree marketing media. The media vehicles used are TV, Print, Radio & Digital media. Brand has been doing innovations in all the media vehicles planned. Olfactory marketing experience generating initiatives are planned at important touch points like car accessory stores, modern trade stores, petrol pumps and lifestyle-oriented touch points like a gym etc.

     

    With competitors too exploring the digital platform, how can one deal with it to stay ahead in the clutter?

    With the growing popularity of social media and increasing use of digital medium by consumers it is imperative for brands to have an active presence on the digital platform. Consumer conversation on social media influence shoppers’ preferences and hence brands needs to be a part of these conversations to gain new potential customers and sustaining the existing ones. The key challenge for any digital campaign is to identify the right target audience and to creatively engage with them which has been the key focus area for the campaigns by Godrej #InViratsHeadwas trending for three days and # firsteverfragranceapp was trending for two days, which is a clear indication of huge consumer response that the campaign received.

     

    And lastly, where do you see the digital platform in the next five years?

    Increasing internet penetration and demand for smart phones will only increase the engagement of consumers on social media. We could probably see new social media apps being developed to cater to custom made requirements. Consumer would also find new platforms of communications similar to Facebook, Twitter etc which would further accentuate the brand engagement with consumers. Digital will definitely be the pivotal focus of most marketing campaigns and will be the new battlefield for brands to fight for consumer attention.

     

  • A study of the aggregate financial performance of the leading 10 FMCG companies over the past eight quarters shows that the industry has grown at an average 16-21 per cent in the past two years

    FMCGs like HUL, Dabur, Godrej, Marico on consumption-driven growth

    By A Correspondent

     

    India’s fast-moving consumer goods, or the FMCG sector, has been able to weather the impact of an economic slowdown and rising input costs yet another quarter, as firms led by HUL beat street expectations both on top line and bottom line growth.

     

    A study of the aggregate financial performance of the leading 10 FMCG companies over the past eight quarters shows that the industry has grown at an average 16-21 per cent in the past two years with average operating margins being 22 per cent.

     

    Very few other industries can boast of having such a performance track record. “The consumer sector typically is the last and the least to suffer during a slowdown,” said Manoj Menon, senior analyst at Kotak Institutional Equities.

     

    Most companies are reaping the benefits of the direct distribution expansion mostly in rural India. HUL, for instance, has tripled its rural penetration in the last couple of years. Sales from modern trade have also been a strong growth driver for companies. Marico has posted a growth of over 45 per cent in revenues from its rural and modern trade businesses during FY12.

     

    The quarter to March performance of FMCG companies like HUL, Dabur, Godrej Consumer Products, Marico, Asian Paints, GSK Consumer Healthcare, Procter & Gamble Hygiene and Healthcare and Jubilant Foodworks is also a reflection of consumption-driven growth.

     

    Half of HUL’s 20 per cent revenue growth during the March quarter was volume driven. Dabur’s domestic sales rose 19.2 per cent with volumes rising 9.5 per cent. Godrej Consumer Products logged 30 per cent sales in soaps in India – 17 per cent of which was volume-driven. Asian Paints registered 29 per cent growth in its revenues from domestic business, of which 15 per cent was volume growth.

     

    The company had raised prices by close to 12 per cent on its portfolio during the quarter. Jubilant Foodworks, owner of the Dominos Pizza franchise in India, reported 26 per cent same store growth, which was almost entirely volume-driven despite the company raising its menu prices by 10 per cent. Marico has been able to achieve a 17 per cent volume growth for the March quarter from a total revenue growth of 23 per cent for the quarter.

     

    GSK Consumer Healthcare registered 14.5 per cent increase in net sales – 7 per cent of which was driven by volume growth and the rest through higher realisations on account of price increases. Nestle was probably the only company to have a largely value-driven revenue growth of 13 per cent during the March quarter.

     

    Exceptional value growth always carries the risk of hurting volumes. Till now, most FMCG companies have been able to perform well while balancing between volume and value growth. “Over the long run, we see consumer demand being resilient,” Nitin Paranjpe, chief executive officer of HUL, had said at the press conference following the company’s results. According to Mr Paranjpe, the secular trend of consumers is towards uptrading rather than downtrading.

     

    “The demand for consumer goods is relatively inelastic compared to that of other products,” explained Milind Sarwate, group chief financial officer, Marico. An earlier ETIG analysis of the growth in revenues and profits of leading FMCG companies revealed that companies registered a much faster growth in revenues and profits during periods of high inflation (in 1994-98 and again from 2006 till date) compared with periods of low inflation (1999-2005).

     

    “During an inflationary period, there is a likely market share gain for organised players from the unorganised regional players,” Mr Menon explained. Larger firms enjoy economies of scale on account of bulk buying and higher pricing power on their reputed brands.

     

    The ET FMCG Index has a price to earnings multiple of 36 against the Sensex P/E of 16.1. Stocks of Godrej Consumer Products and Asian Paints hit a new high ahead of the companies’ result announcements. Stocks of HUL, Marico, Dabur, Glaxosmithkline Consumer Healthcare and Jubilant Foodworks are hovering near record high levels.

     

    However, their current valuations are still lower than their all-time record levels. In case the broader economy is sluggish, analysts fear that the going may not be good for the sector in the coming quarters. “Moderation is very much on the anvil,” cautioned Mr Menon. For now, FMCG companies continue to live up to their reputation of being a defensive investment play.

     

    Source: The Economic Times

    Copyright © 2012, Bennett, Coleman & Co. Ltd. All Rights Reserved

     

  • Analysts expect all leading FMCG companies to post strong results in the fourth quarter ended March and maintain their margins in the current fiscal

    FMCG players upbeat after Q4 sales boom

    By Ratna Bhushan & Sagar Malviya

     

    Consumer goods companies and retailers expect a spurt in demand this fiscal, buoyed by indications of better-than-expected earnings in the January-March quarter backed by a revival in consumer sentiment.

     

    Analysts expect all leading FMCG companies to post strong results in the fourth quarter ended March and maintain their margins in the current fiscal, even as gung-ho investors have pushed shares of most companies to their 52-week high on the Bombay Stock Exchange this month.

     

    “The last two quarters seem to have stabilised in terms of consumption though there have been price hikes,” said A Mahendran, MD, Godrej Consumer Products. The maker of Cinthol soap and Good Knight mosquito repellant expects its fourth quarter earnings to be better than analyst forecasts of 16-22 per cent increase in revenues.

     

    Growth in FMCG product sales signals revival of consumer sentiment over 2011 when market growth slipped to 8 per cent from 12 per cent the previous year.

     

    Companies now look to ride on high-margin products, rural demand and innovations to maintain the growth momentum without taking a hit on their margins.

     

    NO DOWN TRADING

    They are buoyed by the fact that there is no significant indication of down trading, or the trend of switching to a cheaper brand due to price increase, by consumers despite 5-10 per cent increase in prices of daily use items like soap, toothpaste and hair oil. “We have not seen downtrading,” Anand Burman, chairman of Dabur India, which makes Vatika shampoo and Amla hair oils, said. He added that a combination of rural consumption and growth from mass-priced products in urban markets were triggering demand for Dabur’s hair care and oral care products.

     

    But Harsh Mariwala, chairman and MD of Marico Ltd, which makes Parachute hair oil and Saffola edible oils, warned that margins may remain under pressure. “We expect healthy top line in continuation of the previous quarter…in terms of bottom line though, margin pressures will remain because of fluctuating raw material costs and complex global cycles,” he said.

     

    Prices of menthol have shot up 40 per cent over the past two months, while palm oil prices have surged 10 per cent in the last one month. But analysts expect margin pressure to ease with innovation gaining centrestage. Then companies will gradually increase their advertising and marketing expenditure, Edelweiss Financial Services research analyst Abneesh Roy said. “We expect margins to begin slow northward trajectory in the coming months as raw material prices cool off and rupee depreciation reverses,” Roy wrote in a report early this month.

     

    APRIL BOOM

    The country’s top retailer says that retail sales have picked up speed in the past two weeks and expects healthy demand to continue in the next two quarters. “While the January-March quarter was good and grew better than the same period last year with most retail segments growing by high single digits, we are seeing an upsurge in sales in the last two weeks across all formats,” Kishore Biyani, chairman of the country’s largest organised retailer Future Group, said.

     

    He said there is an upsurge in sales of even consumer durables April onwards, adding that Pantaloon, Big Bazaar and Home Town have witnessed high double-digit growth. Apparel, toys and footwear retailer Lifestyle International’s MD Kabir Lumba said its sales grew the most in the fourth quarter. “We have seen a lift from the lower trading conditions of September to November. While we grew 22 per cent overall last year, the fourth quarter grew faster,” he said.

     

    DURABLES STRUGGLE

    Makers of home appliances such as fridges and ACs are, meanwhile, reeling under the double whammy of late summer as well as price hikes. AC sales were down by 30-35 per cent year-on-year during the quarter, while there has been a marginal 3-5 per cent growth for refrigerators. “The overall market is down due to sluggish sales of cooling products. Temperatures are yet to rise to induce AC purchases, while the price increase for input cost and excise too have been a big dampener,” Kamal Nandi, VP (sales and marketing) at Godrej Appliances, said.

     

    Prices of products have gone up by 10-15 per cent due to input cost hikes, upgradation in star ratings for energy labelling and increase in excise duties in the Budget.

     

    While consumer sentiments had improved during the Republic Day period in January due to aggressive discounts and promotions by retailers, sales were muted in February and March. Whirlpool VP (corporate affairs and strategy) Shantanu DasGupta, however, said the new fiscal year has started in positive note. “April has started off okay, but it is early days yet,” he said.

     

    “Individual companies may be growing, but that’s not due to demand. Instead, it’s led by innovation in new launches and distribution gains,” Mr DasGupta added. Electronic firms are now betting more on LCD and LED televisions, washing machines and microwave ovens for growth.

     

    “Flat panel televisions continue growth momentum since this category did not see any significant price changes this year,” Samsung VP (audio-visual business) Raj Kumar Rishi said. Samsung expects sales of summer products like AC and refrigerators to gather momentum in the second quarter.

     

    (With inputs from Writankar Mukherjee and Sarah Jacob)
    Source: The Economic Times

    Copyright © 2012, Bennett, Coleman & Co. Ltd. All Rights Reserved