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Hygiene, health & wellness remain key consumer concerns: Kantar report
Mumbai: Emerging from the pandemic, the Indian FMCD (Fast Moving Consumer Durables) market presents significant opportunities. While the pandemic caused much anxiety amongst consumers in general, there was a high demand in the FMCD health and wellness space, according to the latest Sustainability Report from Kantar. New-market segments such as air purifiers, ACs with purification filters, smaller sub-categories such as UVC disinfection categories, UVC Desk lamps, and growth of personal care health tech products such as smartwatches and fitness monitors saw amped-up sales, says the report. Consumption patterns have changed significantly – towards safety, premiumness and technologically advanced products.
The data-driven analytics and brand consulting company unveiled the FMCD Sustainability Report – “Walking the Talk on Sustainability with Consumers – a roadmap for India’s FMCD Sector.” The Kantar report reveals that the Indian consumers are also becoming more conscious about the impact of human activity on climate change and other environmental factors. The report highlights how the intersection of the FMCD sector and sustainability will further enable growth. It aims to provide key sustainability roadmaps for FMCD brands to help them navigate the ecosystem with sustainable solutions.
The India Story: Post-pandemic Consumer Attitudes and Behaviour
According to the Kantar report, consumer reactions in the wake of Covid-19 continue to evolve and the Indian market presents several opportunities for the FMCD brands. The report further states that cautious consumption is the norm – hygiene, health and wellness are key consumer concerns, where 91 per cent Indian households are washing hands more often now, 47 per cent Indian households claim increased toilet cleaning, more so in rural (49 per cent) vs urban (43 per cent).
Data also suggests that consumers are changing education and work codes, with work ecosystems being reshaped by digital transformation. With accelerated digital adoption, there is 125 per cent growth in usages of smart devices among internet users, paving the way for the emergence of a smart home. Some of them are – smart lights, smart speakers, smart air purifiers, smart display, smart home entertainment and smart cleaning.
There is also evidence to suggest that ‘value’ is a key factor for consumers since post-pandemic financial concerns have cropped up, where 73 per cent attribute Covid-19 to have impacted household income, while 67 per cent pay greater attention to prices while shopping. This has led to an overall joint accountability of both businesses and consumers towards adopting a stronger sense of collective corporate responsibility, according to the report.
“The FMCD sector is witnessing rapid growth even in post pandemic phase while we’ve also seen a great consumer shift towards sustainability and the environment urging brands to rethink their strategies,” said Kantar Insights Division Qualitative & Lead- Sustainability Practice South Asia managing director Paru Minocha. “Consumers have greater expectation from companies than from themselves; this is likely to be amplified in FMCD, where personal behaviors post purchase is led primarily by the policies/features of the product and company they use. With this report, we are putting forward recommendations to brands which help in solving customer tensions with sustainable solutions, addressing barriers such as packaging, service models, repairability, and return and recycling policies.”
Commenting on the focus and relevance of FMCD, Kantar Shopper and CX Domain lead Sushmita Balasubramaniam said, “Consumers today are more aware and concerned about sustainability and other issues like pollution, carbon emissions, etc. For example, in the mobile phones category, consumers expect brands to address macro environment issues of carbon emissions and plastic pollution whereas in the computing category – carbon emissions, packaging and tax evasion are palpable concerns. In appliances, concerns exist on pollution (air and plastic) and emissions besides packaging. While we see consumers consciously making smarter choices, the responsibility resides with brands andmarketeers to provide sustainable solutions to resonate and build credibility with their audiences moving forward.”
Launched at the recent CII’s FMCD Summit, the Kantar report also provided key recommendations for the FMCD brands such as embedding Green Lifecycle across portfolio and processes, connecting the environment and the everyday, addressing Consumer Knowledge Barriers and meeting accountability expectations. With the suggested roadmap, the report also highlights noticeable consumer trends that lead to a collective accountability of both businesses and audiences, seeking the path to a more sustainable world.
Most business owners treat their working capital limit like a safety net. It sits there, attached to their current account, ready to be drawn on whenever cash gets tight. And for routine operations, that arrangement works fine. But there are specific situations where a lump-sum loan disbursed quickly into your account is the smarter financial move. Knowing when to pick one over the other can save you real money and keep your business from getting stuck.
The Fundamental Difference People Overlook
A working capital limit, often structured as an overdraft or a revolving credit facility, gives you access to funds up to a pre-approved ceiling. You draw what you need, pay interest on what you use, and replenish it as receivables come in. It is designed for short-term, recurring needs like paying suppliers or covering payroll gaps.
A term loan disbursed quickly, on the other hand, drops a fixed amount into your account. You repay it in instalments over a set period, with a clear end date. The interest rate is typically fixed or at least predictable. These two products solve different problems, and treating them as interchangeable is where businesses get into trouble.
When Speed and Certainty Matter More Than Flexibility
Here’s a scenario that plays out constantly. A retailer gets an opportunity to buy inventory at a steep discount, but the supplier wants full payment within 48 hours. The retailer’s working capital limit is already partially drawn. The available balance might cover part of the order, but not all of it. Requesting a limit enhancement takes days, sometimes weeks, because the bank reassesses your financials.
An instant business loan solves this cleanly. You apply, get approval quickly, and the full amount lands in your account. You buy the inventory, sell it at full margin, and repay the loan over the next few months. The cost of interest on that loan is far less than the profit you would have lost by passing on the deal.
This pattern repeats across industries. A logistics company needs to repair a critical vehicle immediately. A restaurant has to replace kitchen equipment before the weekend rush. A manufacturer lands a large order but needs raw materials upfront. In each case, the need is urgent, specific, and finite. A revolving facility wasn’t built for these moments.
The Hidden Cost of Over-Relying on Working Capital Limits
There’s a psychological trap with revolving credit. Because it’s always available, business owners tend to lean on it for everything, including expenses that really should be financed separately. When you use your overdraft to fund a one-time capital purchase, you reduce the buffer available for daily operations. Then, when a genuine cash flow gap appears the following week, you’re scrambling.
Worse, many working capital limits come with annual renewal. If your financials have dipped, the bank can reduce your limit or decline renewal altogether. If you’ve been using the facility for purposes it wasn’t designed for, your utilisation patterns can actually work against you during the review.
A distinct term loan keeps your working capital limit clean. Your revolving facility handles day-to-day operations. Your loan handles the one-off expense. This separation makes your balance sheet easier to read and your banking relationship easier to manage.
Interest Rate Math That Favours Term Loans
Working capital limits often carry floating interest rates pegged to the bank’s benchmark. The rate adjusts, and over time, especially when monetary policy tightens, your cost of borrowing can creep up without you noticing because you’re only looking at the small daily interest debit.
A fixed-rate term loan gives you certainty. You know exactly what each instalment will be, which makes cash flow forecasting more accurate. For a specific expense with a known amount and a defined payback period, this predictability matters. You can map the repayment against the revenue that expense is expected to generate.
A working capital loan structured as a revolving facility makes sense when your borrowing needs fluctuate week to week. But when you know exactly how much you need and roughly how long it will take to pay back, a term product is almost always cheaper in total interest cost. The discipline of fixed repayments also prevents the slow balance creep that plagues overdraft users.
When Your Facility Is Maxed and Opportunity Knocks
Perhaps the most compelling case is the simplest one. Your existing limit is fully utilised. Business is good, money is coming in, but right now the account is stretched. A new opportunity appears. You can either let it pass or find additional funding fast.
Waiting for a limit increase is not a strategy when timing matters. Applying for a separate short-term loan, getting approval the same day or the next, and funding the opportunity directly is a concrete action with a measurable return. You are not adding long-term debt to your balance sheet. You are financing a specific transaction that pays for itself.
The smartest business owners don’t treat all credit as the same. They match the product to the need. Revolving facilities handle rhythm. Term loans handle moments. Getting that distinction right is one of the quieter advantages a well-run business holds over its competitors.
