Coronavirus outbreak: Retail market could be set back by at least a quarter

Companies expect recovery by the second quarter of FY21

India’s consumer and retail market could be set back by at least a quarter due to the coronavirus scare, top executives of companies have told Business Standard.

While supply-side concerns remain, the bigger worry for most companies is the impact on domestic demand, which has been weak for a few quarters now.

October-December 2019 saw the fast-moving consumer goods (FMCG) market report its lowest growth in six quarters, according to market research agency Nielsen. 

The forecast is that growth could be muted for the three months ended March 31, 2020, as coronavirus cases grow, said Nitin Gupta, FMCG analyst at brokerage SBICAP Securities.