Sales Winter for FMCGs?

FMCGs sales have been dropping off-late. The reason will surprise you🤯🤯
Forget funding winter. 

There's a new type of winter for FMCGs this year - Sales Winter!
Ironically, winters are to blame here! 
Huh? 
Read on. 
You see, climate change is at peak. 
Global warming is increasing.
Result? 
Winters are delayed in India this time. 
Winters usually start setting in November.
But this time, India recorded the third highest maximum and minimum temperatures for November since 1901! 
India Meteorological Department (IMD) had predicted that the delayed winters this year will be warmer than usual. 
And this is hurting the sales of companies. 
How? 
Winter products like skincare (body lotion, lip balm), chyawanprash, honey and winter hair oil form a major part of FMCG companies’ portfolios. 
With the delayed onset of winter, these FMCGs are left with large stocks and no buyers. 
Result? Winter portfolio decline.
For HUL, the winter portfolio makes up 30% of the Skin Care category.
In Q3 FY24, it reported a decline in its winter portfolio for both urban and rural India. 
ITC also reported a similar risk from climatic conditions. 
Delayed winters also reduced the sales of winter appliances like room heaters and water heaters. 
Not just delayed winters, but unseasonal rainfalls have also impacted the beverage demand for companies like Dabur. 
Now, low demand means more unsold inventory. 
So, FMCGs may have to sell off their inventory at huge discounts or worse, throw it away. 
But there's a small ray of hope in this gloomy situation.
Winters are delayed, not dead. 
Demand might still pick up in the coming months. 
Sales might still go up in the coming months. 
What other sectors do you think climate change will impact? 
And how can we minimise this impact? 
Let us know in the comments! 
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