Year in Review: Rural India hurt FMCG; smartphones rode on e-commerce

FMCG suffered on two counts -- poor consumer sentiment brought on by macroeconomic headwinds and the continuing liquidity crisis arising out of faltering NBFCs

After nearly two years of disruption due to demonetisation and implementation of the goods and services tax (GST), the country’s vast consumer goods sector had much hope from the year 2019. However, a lookback into the consumer market during the past 12 months presents a gloomier picture. While certain segments such as smartphones and air conditioners had some respite, fast moving consumer goods (FMCG), the largest of the chunk, suffered a body blow as new pain points emerged in 2019.

The country’s Rs four trillion FMCG market--the world's fourth largest --faced stiff challenges in the hinterlands with sales growth falling