Among FMCGs, discretionary consumption is poised to make a comeback with good recovery in most personal care categories (soaps, hair oil, hair color, skincare, oral care, etc.). But, packaged foods and health & hygiene categories are expected to moderate from the high base during the lockdown period.
The offline retailers are set to record below-par performance in Q3. They will continue their efforts to restore normalcy in the upcoming quarters.
The retailers will also be seeking the government to play an active role in restoring demand. They would be dearly hoping to see tax relief for the middle class. The tax relief will put more money in the hands of the consumers which in turn will flow back into the economy in the form of spending.