FMCG, auto and consumer firms boost festive marketing budgets by up to 20 per cent

NEW DELHI: India’s consumer companies are putting more money behind their festive bets. FMCG, automobile, consumer electronics and other consumer-facing companies are raising their marketing budgets by up to 20 per cent this festive season, as they look to capitalise on improving demand and capture a larger share of what is traditionally India’s biggest consumption period, according to an Economic Times report.

Companies including Hyundai Motor, Maruti Suzuki, Hero MotoCorp, Amul, Parle Products, Haier, Havells, Hisense and Godrej Appliances are stepping up marketing investments as the festive calendar gathers pace, starting with Onam and running through Dhanteras and Diwali in November.

The increased spending comes as dealers and retailers have begun building inventory ahead of the festive period, signalling greater confidence in a volume-led recovery. Strong Independence Day sales have also provided an early indication of improving consumer demand.

The marketing push comes despite pressure on margins. Consumer companies have been facing higher input costs, partly driven by raw-material inflation and a weaker rupee. With companies reluctant to pass the entire increase on to consumers for fear of hurting demand, advertising and marketing are increasingly being used to defend volumes and market share.

Haier India plans to spend around Rs 60 crore on marketing during the festive season. The company is also looking to strengthen its market position despite the pressure on margins.

Amul has increased its marketing budget by nearly 20 per cent, reflecting the dairy company’s expectations of continued momentum across categories.

Consumer electronics brands are also stepping up their festive bets. Hisense India plans to increase its festive marketing budget to around 8 per cent of sales, compared with 4.5 per cent last year. The company is also strengthening its offline presence amid healthy inventory additions.

Havells, which doubled its advertising expenditure in the June quarter from a year earlier, is expected to maintain elevated spending through the festive period, including behind its Lloyd brand.

The automobile sector is similarly preparing for a strong festive season. Hyundai is planning new vehicle launches, consumer offers and engagement campaigns across digital platforms, television and print as it seeks to build on improving market sentiment.

Hero MotoCorp is also continuing to invest in advertising and consumer engagement across its portfolio, with the aim of strengthening customer consideration during the festive period.

Fashion companies are joining the spending spree. Arvind Fashions, which owns and operates brands including Arrow, Tommy Hilfiger and Calvin Klein in India, has increased its marketing investments since the previous quarter.

The spending comes as the October-December quarter approaches, traditionally the most important marketing period for categories ranging from consumer electronics and smartphones to automobiles, two-wheelers, apparel and FMCG.

For consumer companies, the festive season offers an opportunity to convert improving sentiment into actual purchases. With retailers already preparing for higher footfall and companies willing to spend more to stay visible, India’s festive rupee is shaping up to be a fiercely contested one, even if the battle comes at the cost of some margin.