The gleeful period is traditionally the time when companies open up their bag strings to go all out on advertising, with the FMCG sector leading from the front. Still, the third quarter of the current financial turned out to be different. Despite recording good deals during the gleeful quarter, utmost FMCG brands either cut down their advertising and promotional charges or increased their spending veritably hardly.
One of the country’s biggest advertisers, Hindustan Unilever (HUL), reduced its promotional spends by 14 on a YoY base to Rs crore for the quarter ended December 31, 2021, against Rs crore in the same quarter of the former time. Also, Dabur posted a 17 decline in advertising spending.
The company spent Rs237.07 crore in Q3 FY22 compared to Rs282.38 crore in the same quarter of last time. Colgate too brought down its advertising spending by 27, spending Rs150.89 crore in this quarter against Rs198.3 crore in Q3 FY21. Further, Godrej Consumer Products Limited (GCPL) spent Rs228.63 crore as announcements and hype charges for the quarter ending December 31, 2021, as compared to Rs229.06 crore in the same period last time.
Sudhir Sitapati, MD and CEO of Godrej Consumer Products, to anticipate some volume bumps in the coming many diggings but is sure the sector will come out relatively well.
Speaking at the Q3 FY22 earnings conference call, he participated, “I suppose while the overall media may be flat YoY (and YoY has colorful effects if you look at it successionally and in absolute crore rupees), it has significantly gone up in Q3 versus Q2. Eventually, the media is a good thing to look at successionally and in rupees, and that’s generally our strategy.
Some of these media investments do not pay back incontinently, but they pay back enough soon. We’ll continue to do that as we go on because our strategy remains married to order development. There will be some volume bumps, as all of us know, in the coming many diggings. I suppose if we’re concentrated on order development driven through increased brand investments, we’ll come out of this relatively well.”
Emami’s Director Mohan Goenka also participated, during the earnings call, that they would be veritably wise in terms of charges, spending only at the right time.
“By and large we’d not fail on the periphery front as I said that the requests aren’t veritably conducive for growth. So, we’d be veritably wise in terms of our spending. We’d only spend at the right time,” he participated.
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