FMCG Under Pressure: Nestle India CEO Highlights Challenges In Mega Cities

India's middle class is tightening its purse strings as persistent high food inflation strains household budgets, according to Nestle India Ltd. Chairman Suresh Narayanan. Traditionally viewed as a segment with considerable purchasing power, these consumers living in megacities are now spending less, a shift he describes as a trend that's "going out of style". This change is hurting consumer goods companies, leading to subpar volume growth, compared to the double-digit growth rates seen in previous years, he said.

#nestle #nestleindia #nestlechocolate

[truemonk]

If nestle increases prices like crazy, it will have to face the brunt. In fact all consumption stocks need to reduce prices by 15-20% to be able to become reasonable (not affordable). Consumer discretionary is also the same story . They are charging prices as if it rained gold into middle class salaries in last 2 years

[mahabaleshwarpandit]

People are buying online and alternatives like Marwadi shops, home made products etc. and hence consumer companies may not be doing that well.

[arjunraghav]

Ofcourse when their product prices(can be due to tax or markup) are growing faster than middle class income obviously the middle class market will shrink.
Middle class market will never expand, because middle class can never climb upper class and lower class cant climb to upper class. This is almost middle income trap situation in india

[matic_]

Nestle has a good competition with star bazar .While star bazar sales are increasing Nestle sales are decreasing weird

[Prashant_Pandey]

it's not coco (k-o-k-o) its cocoa (k-o-k-o-a)