![THAT TUMBLING FEELING](https://cdn.magzter.com/Outlook Business/1709705833/articles/68ZjSRx1D1709727539442/THAT-TUMBLING-FEELING.jpg)
The signs are worrying. No wonder marketing honchos of some of the biggest fast-moving consumer goods (FMCG) companies are burning the midnight oil. Not only has growth in demand for their products in the hinterland been sluggish, consumers are opting for local brands.
Bharat Bhushan, who runs a retail store in Dhuri, a small town in the Sangrur district of Punjab, says that he has observed a strong demand for local FMCG products. What would generally be seen as a local isolated phenomenon is now being reported as a national trend.
The new year could not have started on a more tepid note for Hindustan Unilever (HUL), ITC, Britannia, Godrej Consumer Products and Marico among others. When the country’s largest FMCG brand HUL announced its result for the last three months of 2023, the trend was clear. Despite the quarter having multiple festivals, the volume growth of the company remained tepid at 2% and sales declined by 0.3%.
A similar story played out at ITC which saw its cigarettes volume decline 2% in the third quarter of 2023–24 while Marico reported a listless 2% growth in volume. Overall, the volume growth across several top brands has remained near stagnant in the past two years. This prolonged slowdown has clearly dampened the sentiment of investors.
In less than two months into 2024, HUL has seen its share price drop by nearly 10%, ITC’s scrip has dropped by 13% and Marico’s shares have seen a decline of over 3%.
The companies’ leadership, analysts and observers agree on the need for a sustained growth recovery to boost sentiments. While the factors which have dragged down growth may appear transitory in nature, there are indications that top brands are recalibrating their strategies to find a new growth engine which can drive investor trust back.
Double Whammy
This story is from the March 2024 edition of Outlook Business.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the March 2024 edition of Outlook Business.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
![DEMAND DRAFT](https://reseuro.magzter.com/100x125/articles/259/1721878/cVdja28Fc1717485748551/DEMAND-DRAFT.jpg)
DEMAND DRAFT
A new government, a new beginning. However, for industry leaders, it is a time of uncertainty as they wait and watch what policies the new dispensation will enact.
![REBEL'S GUIDE TO SUCCESS WITH FOOD](https://reseuro.magzter.com/100x125/articles/259/1721878/dDV5nDw8U1717738810177/REBELS-GUIDE-TO-SUCCESS-WITH-FOOD.jpg)
REBEL'S GUIDE TO SUCCESS WITH FOOD
Having started its journey in 2004 as a quickservice restaurant under the brand name Faasos, Rebel Foods, now a unicorn, aims to expand its footprint. Jaydeep Barman, co-founder of Rebel Foods, talks to Vinita Bhatia about the company’s growth plans, focusing on Tier-II and -III cities, licensing as a strategy and more. Edited excerpts:
![NATURE BECKONS](https://reseuro.magzter.com/100x125/articles/259/1721878/6wicP08Oq1717497572286/NATURE-BECKONS.jpg)
NATURE BECKONS
When not busy at work, Naivedya Agarwal, co-founder and CEO of manufacturing start-up Runaya, indulges in activities that keep him close to nature, like wildlife photography, safaris, flying and holidays at beaches and the hills
![Combining Minimalism and Material Responsibility for Timeless Furniture Pieces](https://reseuro.magzter.com/100x125/articles/259/1721878/fVJcb0s071717497442675/COMBINING-MINIMALISM-AND-MATERIAL-RESPONSIBILITY-FOR-TIMELESS-FURNITURE-PIECES.jpg)
Combining Minimalism and Material Responsibility for Timeless Furniture Pieces
Leading Furniture Industry with Inspiring Innovation, Sustainability, Customization, and Collaboration. EK Designs creates designs with honesty and transparency upholding the strict quality norms.
![Participation Over Dictation Leads to Excellence: Girish Avansta](https://reseuro.magzter.com/100x125/articles/259/1721878/Idekw_2Cn1717497280111/PARTICIPATION-OVER-DICTATION-LEADS-TO-EXCELLENCE-GIRISH-AVANSTA.jpg)
Participation Over Dictation Leads to Excellence: Girish Avansta
Accellor's innovative Al-backed designs are a result of the whole-hearted participation of every employee
![Leading the Charge in Digital Transformation by Pioneering the Future of Enterprise Automation](https://reseuro.magzter.com/100x125/articles/259/1721878/yaOna8lxE1717497146049/LEADING-THE-CHARGE-IN-DIGITAL-TRANSFORMATION-BY-PIONEERING-THE-FUTURE-OF-ENTERPRISE-AUTOMATION.jpg)
Leading the Charge in Digital Transformation by Pioneering the Future of Enterprise Automation
Areteans is Revolutionizing Business Automation and AI Integration
![Recognizing MSME Excellence and Charting the Future: Insights from Outlook Business Spotlight Awards 2024](https://reseuro.magzter.com/100x125/articles/259/1721878/2CqZPw1Mt1717496936486/RECOGNIZING-MSME-EXCELLENCE-AND-CHARTING-THE-FUTURE-INSIGHTS-FROM-OUTLOOK-BUSINESS-SPOTLIGHT-AWARDS-2024.jpg)
Recognizing MSME Excellence and Charting the Future: Insights from Outlook Business Spotlight Awards 2024
MSMEs are the \"unsung heroes who keep our industries humming and our dreams soaring.
!["Sustainability is an Essential Component of Lubrizol's Corporate DNA"](https://reseuro.magzter.com/100x125/articles/259/1721878/IFUKSP8UP1717496628839/SUSTAINABILITY-IS-AN-ESSENTIAL-COMPONENT-OF-LUBRIZOLS-CORPORATE-DNA.jpg)
"Sustainability is an Essential Component of Lubrizol's Corporate DNA"
Bhavana Bindra, Lubrizol's dynamic Managing Director, shares her views on sustainable growth and Lubrizol's impact in India.
![Modernizing Mobility: India's Need For A Smarter And Sustainable Passenger Transportation Solution](https://reseuro.magzter.com/100x125/articles/259/1721878/08pAITfWO1717496480436/MODERNIZING-MOBILITY-INDIAS-NEED-FOR-A-SMARTER-AND-SUSTAINABLE-PASSENGER-TRANSPORTATION-SOLUTION.jpg)
Modernizing Mobility: India's Need For A Smarter And Sustainable Passenger Transportation Solution
India is at the forefront of a transformative wave of urbanisation. To combat climate change and urban pollution, upgrading infrastructure and embracing sustainable mobility, particularly in efficient mass transportation systems is an imperative.
![Bank Imbalance](https://reseuro.magzter.com/100x125/articles/259/1721878/EpHw2fpWs1717493740458/crp_BANK-IMBALANCE.jpg)
Bank Imbalance
As investors turn to more lucrative options, banks in India are seeing sluggish growth in deposits. With a limited arsenal to compete with high returns available elsewhere, they are struggling to balance deposits with the amount of loans they are handing out