Fri. Mar 29th, 2024
media advertising industry in India

Fast Moving Consumer Goods companies are set to spend a lot more on advertising in the coming months of the year. According to an ET report, the companies have seen their customer base shrinking thanks to demonetization and increased love for the herbal products.

According to a report, customers spend a lot more on FMCG goods in the festive months as compared to the other months of the year. To tap into that increased possibility, the major companies have decided to put in a lot more money for advertisement to woo customers and increase their customer base.

The report quoted one of the officials of a well-known company saying that FMCG sector has struggled because of GST and demonetization and festival season is one of the biggest opportunities to offset that impact. Also, the other factors which will drive the growth in sales include a great monsoon and exposure of the rural population to TV and internet. That will, according to the companies, help in bigger sales figures.

Big FMCG companies, including Parle, Marico, Dabur and Pepsico have big hopes for the festive season and are set to increase their spends in the coming months. According to an estimate, the quarter of October – December accounts for 40% of the yearly advertising revenue by the companies.

Along with advertising their existing range of products, the companies are also looking to launch new products. According to the industry trends, companies spend a total of 25% on advertising their new products.

Another factor, which will drive the sales and advertising, include the GST impact on the sector. A number of retailers stopped taking new stocks before the launch of GST and that impacted the sales big time. Also, the advertising spends on bigger companies was down by approx 20% in the ongoing quarter. Now that GST seems implemented well, things will escalate better for customers, retailers as well as the manufacturers.

By Prithviraj Singh Chauhan

Part time journalist, full-time observer. Editor-in-Chief at The Indian Wire. I cover updates related to business and startups.