Fast Moving Consumer Goods companies are set to spend a lot more on advertising in the coming months of the year.
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.
Companies have witnessed their consumer base shrinking due to the impact of demonetization and GST.
Big spenders, such as makers of daily grocery products including biscuits, snacks, juices, toothpaste and hair oil, said expenditure on consumer promotions would increase by 15-20% in the September-December period.
FMCG companies have struggled a lot due to demonetization and GST and festival season is one of the biggest opportunities to offset this 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 expenditure in the coming months.
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.
In order to recover the lost ground and to woo customers, FMCG companies will spend at least 20% more on advertising in the coming festive season. This shows that big or small, companies are leaving no stones unturned in order to increase their sales figure.
