Bengaluru, 22nd November 2024: The festive season has left an indelible mark on India’s logistics, e-commerce, FMCG, and consumer durables sectors, with key industry trends revealing a nuanced post-festive workforce and sales landscape. However, according to TeamLease Staffing, India’s leading staffing conglomerate, post-festive adjustments reveal sector-specific trends influenced by seasonal fluctuations and industry challenges.
The FMCG sector, which had anticipated a 10-15% increase in sales, particularly in rural areas with higher purchasing power, saw more moderate results post-festive season. Sales in categories such as beauty and personal care, which had faced challenges during the festive period, recorded a slowdown. Personal care products, for instance, saw a year-on-year decline of 3.8% in October. Despite the slower pace of sales recovery, FMCG companies are adjusting their workforce growth to around 5-10% as the overall demand shifts and segments such as Food and Beverage (F&B) face lingering pressures from commodity inflation.
Consumer durables, poised for double-digit growth of 30-40% during the festive period, experienced strong demand for premium electronics like air conditioners and refrigerators. However, post-festive demand has plateaued, leading to a reduction in workforce across sales, logistics, and customer service roles. While hiring spiked by 15-20% during the peak, growth is expected to taper as market conditions stabilize.
In the logistics sector, the temporary workforce surged by 20-30% to support the anticipated 35% growth in e-commerce sales. The demand for workers, particularly in warehousing, last-mile delivery, and customer support roles, intensified during the festive rush. However, as the immediate post-festive demand recedes, logistics companies are maintaining a 10% higher-than-usual workforce to sustain ongoing e-commerce requirements. This strategy ensures that businesses remain agile and prepared for the continued surge in online orders driven by traditional and quick commerce channels.
E-commerce players, which had predicted a 20% increase in workforce during the festive period, recorded a 23% increase in sales, underpinned by growing consumer confidence in online shopping. While the mobile phone segment saw mixed results, premium brands such as iPhones continued to thrive. Following the festive rush, however, a 10% drop-off in the workforce is anticipated as many seasonal contracts conclude. This highlights the temporary nature of workforce surges linked to seasonal spikes.
Quick commerce, a critical segment in meeting the demand for fast deliveries, saw substantial growth during the Diwali gifting period, with a 25-30% increase in workforce compared to regular months. The industry’s rapid expansion continues post-festive season, with platforms planning to double their dark stores by March 2025, workforce expansion is expected to surge by 60%, particularly in Tier II and III cities, as companies ramp up logistics and diversify product offering.
Reflecting on the evolving trends, Balasubramanian, Sr. VP & Business Head at TeamLease, remarked,
“While the festive surge undoubtedly drives sectoral growth, the real story lies in the strategic workforce shifts that occur post-festival. Companies are now refining their workforce strategies to align with evolving consumer expectations and sectoral dynamics. As the growth in sectors like e-commerce stabilises and q-commerce looks to expand further, businesses must focus on maintaining a talent pool that is both flexible and skilled enough to manage the long-term demands of an increasingly digital economy.”
