2 weeks ago

India's FMCG firms step up advertising spending ahead of demand

India's FMCG firms step up advertising spending ahead of demand
FMCG firms step up ad spending · financialexpress.com

Companies that make everyday products like toothpaste, soap and food are spending more money on advertising.

They are doing this because people are starting to buy more of their products again.

Nestle India spent more than 40% more on ads than it did last year.

Colgate-Palmolive India increased its ad spending by about a third.

HUL spent the most money of all the companies, even though its increase was smaller.

The companies want to make their brands stronger and sell more premium products.

They are also trying to reach customers in new places, like online stores and rural areas.

The companies believe that advertising now will help them sell more in the future.

Some experts say ads help, but products also need to be good, fairly priced and easy to find.

Key facts

Nestle India ad spend growth
More than 40% year-on-year
Colgate-Palmolive India ad spend
Rs 251.9 crore, up 33.7%
HUL ad spend
Rs 1,657 crore, up 3.7% (highest in nearly three years)
Marico ad spend growth
25.3%
Dabur India ad spend
Rs 229.5 crore, up 13.6%
Nestle sales growth
25% year-on-year
Colgate net sales growth
12%
HUL sales growth
10% with 5% underlying volume growth

Quotes

Archana Jahagirdar

Founder and Managing Partner, Rukam Capital

“"you have to be on all those channels because you’ve got to be where the customer is, and that is really what is leading to the spend"”
financialexpress.com
“"stronger margins allowed the company to increase focused investments in brand building and category premiumisation"”
financialexpress.com

Sources

Related news