Indian consumer recovery grabs eyeballs

KOLKATA|MUMBAI: India’s strong recovery has found mention in the quarterly earnings calls and statements of global chiefs of nearly half a dozen consumer multinational corporations (MNCs), including Apple, Amazon, Samsung, Unilever, Whirlpool and Kimberly-Clark.Most companies indicated that the market has bounced back sharply in the July-September quarter.On Friday, Apple chief executive Tim Cook said the iPhone maker had set a September quarter sales record in India, while Amazon chief financial officer Brian Olsavsky said it had a strong Prime Day in August and that Diwali season sales were off to a good start.“Geographically, we set September quarter records in the Americas, Europe and the rest of Asia Pacific,” Cook said in Apple’s earnings call. “We also set a September quarter record in India, thanks in part to a very strong reception to… launch of our online store in the country.”Demand for smartphone and consumer electronics has surged in India, with consumers buying the latest mobile phones, laptops, television sets and appliances to adapt to work and study from home, besides automating household chores.In its earnings release on Thursday, Samsung Electronics said overall market demand increased in the September quarter as stimulus measures helped many economies recover after the lockdown.The South Korean giant said smartphone sales rose sharply from the previous quarter, with the launch of flagship models and “stronger sales of mass-market models in key regions, including India.”78962558Outlook optimistic nowWhirlpool Corp chief financial officer Jim Peters said it saw a rebound in India business and expects regional results to gradually improve as the impact of the pandemic declines through the year.The optimism comes months after sales were hit as India implemented one of the world's biggest lockdowns to curb the spread of Covid-19. Restrictions were eased in phases from May. However, in July, states implemented intermittent lockdowns that led to disruptions in supply chains and business cycles.Also, most companies were concerned about the increasing Covid-19 cases in India, making the outlook highly uncertain.They have veered round to a more optimistic view now. For instance, Unilever chief financial officer Graeme Pitkethly last week said it’s “over the hump in India,” citing a pickup in economic activity and the marketplace. Kimberly Clark CEO Mike Hsu said its India business had seen strong double-digit growth.To be sure, not all consumer companies have exceeded pre-Covid sales growth numbers as some discretionary categories, especially liquor, are still struggling to expand.Carlsberg on Thursday said recovery in the country had been robust due to a large young population, but life and businesses are only slowly returning to normal and the impact on the economy is severe.“In India, the infections are very high — 95% of off-trade outlets are open but the number of customers remains subdued as they fear contracting the virus with crowds gathering,” Carlsberg global chief executive Cees ’t Hart told investors. India’s environment is highly uncertain and volatile, as the market is struggling socially and economically, he said.

from Economic Times https://ift.tt/2JqPbHT