CUSTOMER SENTIMENT IN THE FMCG SECTOR: IMPACT OF GST ON CONSUMER BEHAVIOUR IN INDIA

Phase two consists of in-depth interviews with manufacturers, retailers and industry experts to get a sense of how the whole sector views shifting patterns of consumer behaviour from GST. The findings of this study showed that consumers' response to the implementation of GST was ambivalent. In contrast to sales in urban areas, where the purchase of fast-moving consumer goods (FMCG) has become more affordable, people in rural areas were not treated with change in price at all. The ensuing, unified tax structure has led many consumers to show a preference for brand over unbranded or regional alternatives, an indirect impact of the GST on consumer preferences. Consumer attitude towards GST remained mixed due to fears of price increase in select sectors of FMCG such as packaged food and hygiene products, they added. The survey also reveals that the FMCG sector has become more transparent in the supply chain post-GST leading to enhanced customer confidence. GST adoption has negatively impacted small firms and local manufacturers as customer choice and loyalty have been affected due to GST's introduction. As a result, price sensitivity remains a significant factor influencing consumer behaviour, with numerous shoppers reporting that they prefer maximum value and minimum cost for every purchase. These shifts in consumer sentiment will be critical for FMCG businesses and marketers to understand when devising successful pricing strategies and boosting customer engagement in the post-GST world. The bottom line is that the research builds on previous insights into how GST has changed the behaviour of FMCG consumers and contributes valuable knowledge for Indian businesses, politicians besides trade experts.