Festival season pushes consumer companies to book retail shelf space

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With forecasts of robust sales in the September-December period, some of the top food and grocery brands are stacking up their shelf space, ahead of the festival season. Apparel and lifestyle companies are also advancing their product promotion campaigns, The Economic Times reported, on Monday. It had also been reported that offers during the festive season have increased across physical and online retail by 8-10% this year, as compared to the same period last year. Further, it added that these offers were due to the exceptional sales during Raksha Bandhan and Independence Day weekends.

Also, companies generally stock up the inventory with products, packs and festival season promotions around August 15. Post this, there would be a dull phase, following which there would be an escalation around mid-September to December, the publication added.

When the country was battling the second wave of the Covid-19 pandemic from April to June, consumers were mainly buying health-related products. This prompted companies and retailers not to offer promotions and discounts during this period.

Inventory and promotional push touch 12 million stores

In order to leverage positive consumer sentiment, brands like Mondelez and Tanishq have started rolling out campaigns, with many increasing inventories at retail outlets and booking premium spaces. Over 12 million neighbourhood stores in India have witnessed this inventory and promotional push.

Brands are also introducing new products in expectation of higher demand. Orion which makes ChocoPie, would be launching new snack brands from its global portfolio ahead of the festive season. The company is expecting double-digit growth across e-commerce, modern trade, and neighbourhood stores, with the upcoming festive season. It is also looking to rapidly scale up distribution.