The FMCG sector is gleaming with hope as the demand for products has surged with the festive season around the corner and the recently commenced biggest festival of cricket, ICC World Cup.

After subdued celebration in the last two years, there is optimism in the air, say industry experts, who confirmed that the ad spends will be much higher this time than the last two years. The advertising budgets for the festive period this year have increased by about 10-15% compared to last year, said Mayank Shah, Chief Marketing Officer, Parle Products.

“There has been a noticeable uptick in consumer demand and purchasing behaviour, indicating a stronger economic recovery and improved consumer confidence. This festive season has been reflecting positive buying sentiment right from Independence Day and Rakshabandhan.

“As a result, Parle Products is experiencing heightened sales and a surge in demand for our products. The positive trend in consumer sentiment bodes well for the FMCG industry, and we are optimistic about the potential for sustained growth during the entire festive season,” Shah told exchange4media.

Concurring with Shah, RSH Global’s CMO Poulomi Roy said the demand for skincare products has gone up ahead of the festive season.

“Amid the rich variety of India’s festive spirit, we are tailoring our marketing strategies to honour the essence of each celebration. After two years of subdued celebrations, optimism fills the air, and we are witnessing a surge in demand for skincare products, particularly creams and face washes.

“Our sunscreen range anticipates a radiant performance, especially during the exuberant outdoor celebrations of Durga Puja in West Bengal,” Roy said. RSH Global is the owner of the popular skincare brands – Joy and Karis.

According to experts, the FMCG sector was in a flux the last festive season but this time brands are riding strong on the back of festivities and the World Cup.

“Last festive season, most FMCGs were reeling under the pressure of input cost inflation and advertising spends were subdued. One can see the buoyancy in advertising starting with Cricket World Cup and Navratri starting soon. With Dussera and Diwali around the corner, it certainly gives cheer to the industry,” said Rajiv Dubey, Media Head, Dabur India Ltd.

Talking about the marketing strategies and media mix this festive season, the industry experts said that they are going to craft a balanced media approach.

“We are crafting a balanced media approach, leveraging TV advertisements, on-ground events in our key markets to forge deeper connections with consumers, and engaging social media content tailored to the festive season. This festive season, we’re not just celebrating traditions but also, co-creating unforgettable moments with our customers, both online and offline,” said Roy.

She, however, said that the advertising budget for RSH Global is steady for now as it is closely watching the evolving consumer trends.

“As consumers embrace a harmonious blend of online and offline shopping, we recognize the enduring appeal of in-store experiences alongside the growing allure of online platforms. Our advertising budget remains steady for now, allowing us to closely monitor evolving consumer trends and make agile decisions in the months to come,” Roy said.

Parle and Dabur had slightly different take as they gave more power to the digital platforms and social media.

“With a chunk of shoppers moving away to quick commerce and other online formats, the media mix certainly has changed in the favour of online business. With online business showing unprecedented growth, it is likely to have better share than earlier festive season. Though the ad budget numbers cannot be shared, one can see higher numbers than LLY and LY numbers,” said Dubey.

According to Parle’s Shah, television is their largest medium of promotion.

“Digital, which has gained a lot of ground in the past few years, comes next. A broad allocation of 60% on television and 25% on digital and the balance on other mediums like newspapers or outdoors is the mix for this festive season,” he said.

However, he concurred with the fact that digital medium has grown significantly, adding that it has increased by “nearly two and a half times which marks a substantial increase in our digital investment. Nevertheless, television remains our primary focus and continues to receive the largest portion of our marketing spend.”

During the first half of this year, ad volumes of the FMCG sector have already witnessed a 6% growth on television, as per the TAM Adex report.

According to TAM AdEx’ Half Yearly Advertising Report for the FMCG Sector, FMCG ad volumes on Radio increased by 7% in H1’23 over H1’22 while digital witnessed a degrowth of 28%.

The report says that in television, general entertainment channels (GECs) were the most preferred with 37 % share and Hindustan Unilever topped with a 23% share of ad volumes among the FMCG advertisers.

Sharing the marketing strategy of Parle for the festive season, Mayank Shah said that the brand aims to leverage the emotional connection that people have with festivals.

“This will be achieved through targeted advertising campaigns across various channels, including television, digital platforms, and print media.

“Additionally, we plan to introduce special festive gifting packs and limited-edition products to create a sense of exclusivity and encourage purchase. Moreover, we will focus on promotional offers and discounts to incentivize consumer spending during this period. The objective is to not only boost sales but also reinforce Parle Products as an integral part of festive traditions for families across the country,” Shah said.