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Urban Consumption Slowdown: The wedding season also brings a boom in business due to the pomp and show. But inflation is taking a huge toll on people’s festive mood. Due to this, the expenditure on common needs of the people has increased considerably. Due to this the consumption of urban people has decreased. In such a situation, retail traders are disappointed. Because, this is the best time for your business to shine throughout the year. But this time the hopes of businessmen are turning into disappointment. The biggest concern of retailers is that they are clearly seeing a decline in demand for consumer products after Diwali.
There is a boom in two-wheeler business
According to the report of The Hindu Businessline, due to the festival season, there is a boom in the business of two-wheelers. Whereas there is marginal growth in the business of other vehicles. Inflation pressure is working a lot behind this.
Decline in urban demand hits December quarter hard
Decrease in demand due to reduction in consumption by people living in cities has had a big impact on the business in the December quarter. However, seeing a slight recovery in the rural demand of the FMCG sector is a matter of relief for the retail traders. Parle Products Vice President Mayank Shah says that the December quarter was very challenging due to inflation and urban slowdown. The retail sector witnessed a marginal growth of seven percent between October 7 and December 1 as compared to last year.
According to Retailers Association of India, this does not meet the expectations of the industry. Association CEO Kumar Rajagopalan says that the very low expenditure of lower middle class people still remains a cause for our concern. According to another expert, consumer sentiment remains better than the previous quarter. But it is still not above pre-Covid or financial year 2023 levels.
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