Rural India Showing Urban Aspirations

There’s a transformation taking place in consumption with people in rural areas and small towns mirroring the aspirations of urban ones, Nestle India chairman Suresh Narayanan said in an interview.

“Rural markets and smaller towns are aspirationally emulating urban India. I see a strong traction, a new wave in consumption,” said Narayanan, who leads the India unit of the world’s largest packaged foods company. “Infrastructure development, two-way commerce, digitisation and impact of social media are aiding all this.”

Nestle India, which makes Maggi instant noodles, KitKat chocolate and Nescafe coffee, reported its highest growth in a decade in the March quarter, with the exception of 2016, which was off a low base in the previous year when Maggi noodles hit a hurdle. Sales rose 20.43% to ₹4,808.40 crore in the March quarter.

“People are living for the moment. Post-Covid consumer behaviour has undergone a change — the philosophy seems to have become kal ho na ho,” Narayanan said. “Might as well enjoy what is today and see what will happen -- seems to be the thought process.”

Nestle, which follows a January-December fiscal year, reported a near-25% increase in net profit in the March quarter on April 25, attributing this to higher prices and steady demand.

This is also the fastest growth among fast-moving consumer goods (FMCG) companies that have declared March quarter earnings so far.

Read more at: https://economictimes.indiatimes.com/epaper/delhicapital/2023/apr/29/satet-front/rural-india-showing-urban-aspirations/articleshow/99855243.cms