Leading FMCG companies are significantly increasing their advertising and promotional spending ahead of the festival season, marking a strategic shift in how marketing budgets are deployed in the competitive quick-commerce market. Colgate-Palmolive India increased its promotional expenditure by 33 percent year-on-year to ₹252 crore in the June quarter from ₹188 crore, while Marico, the maker of Parachute oil and Saffola oats, increased its ad spends by 25 percent during the quarter. According to reports from Moneycontrol, this represents a notable deviation from the strategy adopted during earlier boom phases when large portions of advertising and promotional spends were directed towards quick-commerce platforms for prominent placement.
Nestlé India has significantly increased its digital advertising presence, with digital platforms now accounting for 55 percent of the company's advertising budget, up from 33 percent in 2021. The company increased its advertising expenditure by 40.6 percent year-on-year during the June quarter. As reported by Moneycontrol, brands are looking to build brand value and recognition outside quick-commerce platforms rather than depending primarily on paid prominence within the apps, hoping that consumers will seek out their products when they shop on these platforms. This strategic pivot comes as the quick commerce channel is identified as a major driver of growth, specifically for premium products portfolios that help increase margins.
Colgate-Palmolive's promotional expenditure rose during the June quarter as its gross margin expanded 110 basis points to 69.7 percent. According to Moneycontrol, Colgate-Palmolive India Managing Director and CEO Prabha Narasimhan stated that the company leveraged these strong margins to increase focused investments in brand building and category premiumisation throughout the quarter. The higher spending comes as social-media marketing becomes increasingly critical for the FMCG sector, where purchases are frequent, competition is intense, and consumers can switch between brands relatively easily. The focus is shifting towards strategies aimed at engagement, retention, and loyalty rather than solely promoting individual products.
The increased spending comes ahead of the festival season, with Onam falling on August 29 followed shortly by Rakshabandhan, as consumer companies prepare for an important consumption period. AWL Agri Business is focusing on expanding assortment, improving visibility and pushing premium products ahead of the festive season. As reported by Moneycontrol, AWL Agri Business MD and CEO Shrikhant Kanhere stated that their strategy is centered on ensuring strong product availability across channels, leveraging their wide distribution network and driving demand through relevant festive activations. Brands are also adopting increasingly localised strategies, tailoring product placement and assortment on a cluster-by-cluster basis.
The change represents an expansion of marketing roles beyond conventional campaign planning, media buying and creative development. According to FICCI's consumer economy report cited by Moneycontrol, as commerce becomes increasingly personalised, the role of marketing is expanding into consumer intelligence. Companies are investing in first-party data ecosystems, customer data platforms and retail media capabilities to better understand and influence consumer behaviour. This strategic shift reflects the evolving landscape where brands are building stronger brand recognition outside platforms while using quick commerce as a channel to convert consumer preference into purchases, moving away from the earlier focus on securing prominent placement within these platforms.
