New Delhi: Delayed onset of winters impacted stocking and sale of products such as immunity boosters, creams, lotions and warm clothing in December quarter. However, companies reported a pick up in sales in the end-December and early week of January.
Companies typically see brisk sales of lotions, oils, creams, immunity building products and winter wear during the months of November, December and January. However, several companies said the window for prolonged winters shrank this year with parts of north India seeing a warmer-than expected December. However, temperatures dropped post 20 December with the India Meteorological Department (IMD) issuing cold day alerts over parts of north India.
“From the domestic perspective, demand for winter-centric products has been subdued due to a weak winter—growth is primarily a factor of robust placement of products with trade in October, but tertiary sales have not revived, given a frail winter. Organic domestic volume growth is likely to be in the low-to-mid single digit,” according to a Emkay Securities report.
Makers of heating appliances too reported a full first half of winter. Sales have picked up now. “Traditionally, winters in India commence around mid- November, gradually increasing through the month, and hitting a peak by December month-end. Weather experts have indicated that a good winter is delayed. It started setting in only in December and the season is expected to peak in January. This has definitely impacted the demand for heating appliances. In the last week, as the mercury tumbled, we’re gradually seeing the rise in demand and we’re confident that this will help clear the inventory that’s currently in the market,” said Ravindra Singh Negi, COO Consumer Products, Bajaj Electricals Ltd. The company sells heating products under the Bajaj as well as Morphy Richards brands.
Fast moving consumer goods companies said they stocked up in early part of the last quarter. However, off-take of goods was seen much later.
“Strong winters started post 20 December, while loading had happened much before that, off-takes took some time. All the winter products are now stuck at retail stores. Off-takes have only now started picking up but we don’t have too many weeks of winter left. Last year too, winters were delayed. More than the delay, the window of very cold days is shrinking,” said Amitabh Singh, senior vice president, Patanjali Ayurved Ltd.
The company sells a range of winter specific products such as cold creams, lotions, chyawanprash, honey, and immunity boosters.
Singh said if days get warmer by the end of January, retailers will have to start liquidating stock by offering discounts and freebies.
In its quarterly update released last week, fast moving consumer goods company Dabur India said the quarter witnessed sequential improvement in demand trends although rural growth was still lagging urban growth. “Early signs of revival in consumption are visible with improving trends in volumes…Because of delay in the onset of winter season, we anticipate the health care business to grow in the low to mid single digit,” according to a filing with the exchanges.
The company sells honey, chyawanprash and immunity boosting teas under its healthcare portfolio.
Trade experts said an uptick in winter-related products up north happened largely after 1 January. “December was a tough quarter for most, with several companies reporting low single digit to mid single digit growth. However, things have picked up in January onwards, especially up North,” said Aditya Goel, co-founder, Love in Store, a store loyalty management company.
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Published: 08 Jan 2024, 10:34 PM IST