FMCG Touch Points Surge 9 pc as Economy Opens Up

This has triggered growth in overall 'consumer reach points' (CRPs), a measure of the number of times brands are chosen by consumers.
FMCG Touch Points Surge 9 pc as Economy Opens Up

As the spectre of lockdowns disappears, the purchase frequency of brands in the fast-moving consumer goods (FMCG) segment has improved. This has triggered growth in overall ‘consumer reach points’ (CRPs), a measure of the number of times brands are chosen by consumers, according to Kantar India’s latest ‘Brand Footprint’ report.

The Kantar report said that, overall, CRPs have increased to 98 billion from 89 billion with the growth rate going up to more than 9 percent in 2021 from 3 percent in 2020. 

This growth in overall CRPs is driven by food, health & beauty, and beverages categories — clearly indicating that some of the discretionary segments are not only back on the consumer’s radar, but have actually outpaced pre-pandemic levels. Kantar considered over 400 brands across five FMCG categories to rank brands based on CRPs.

CRPs cover the actual purchase made by consumers and the frequency at which these purchases are made in a calendar year. They take into account the link between the number of households in a country the percentage of households buying a brand and the number of interactions consumers have with a brand across categories in a year.

According to the report, the number of brands growing in terms of CRPs has improved in 2021 (70 percent) over 2020 (56 percent). Big brands (with over 61 percent penetration levels) grew the fastest with a growth of more than 8 percent in 2021 over 2020.

K Ramakrishnan, MD (South Asia), world panel division at Kantar, said that growth in discretionary categories is a long-term trend in India from the CRP perspective. “The number of visits households have made to shops has been on the rise. During the pandemic, it went down but now it’s higher than the pre-pandemic levels. People are interacting many more times with brands at the point of purchase. Even while consumers are making their major purchases every month, there’ll still be repeat visits either to a general trade or to modern trade, or through e-commerce. Repeat visits are creating an increase in frequency. That is a trend which is a slightly longer-term trend and it will continue,” Ramakrishnan asserted.

While there is stress due to inflation, Ramakrishnan said consumers are displaying bipolarity in behavior, with one section of consumers, who are fairly agnostic to inflation, spending their discretionary income after two years of the pandemic. On the other hand, the second set of consumers who had a bad time during the pandemic in terms of loss of job and income, are still coming to terms with the current situation and are tightening their purse strings.

With more outlets now opening unhindered, people are able to shop more often and that has a positive impact on CRP growth. “Choice is a function of penetration as well as frequency, and this year as consumers returned to the marketplace in droves after tightening conditions in the bygone year, frequency jumped significantly, which is reflected in the spikes most brands saw in their CRPs," Ramakrishnan added.

Publish Date
Not Sponsored
Live: People Reading Now
RECOMMENDED FOR YOU
TRENDING ARTICLE