Record sales of ACs clothes in summer:Despite geopolitical tensions, 2027 starts with a bang

The start of fiscal year 2027 has been strong. Despite geopolitical tensions, from April to June, clothing sales increased by 12-14%, demand for air conditioners and refrigerators grew by 17-18%. Premium beauty products also recorded double-digit growth. However, geopolitical tensions arising from the Iran war and high crude oil prices have forced FMCG companies in the everyday goods segment to raise prices. Prices of soap, detergent, toothpaste, and edible oils increased in the range of 4% to 11%. Packaged food saw a price increase of 3-15%, detergents 5-12%, and personal care 5-10%. According to Anand Rathi Research, this price increase is not limited to any one segment, it is widespread. Although there is some relief on the input cost front. Crude oil prices have fallen 29% in 3 months, coffee has become 22% cheaper (in 6 months). However, polypropylene has become 54% more expensive and packaging 60% costlier, which will keep packaging and logistics costs elevated. Experts believe that this time there is a 60% chance of a weak monsoon and 24% probability of below-normal rainfall. June has already seen 46% less rainfall. This could have a negative impact on kharif production and food inflation, which could become a major challenge for rural consumption and FMCG companies. Retail Sector’s Better Performance, 7% Growth Recorded According to ICICI Direct analysts, the retail sector performed strongly in the first two and a half months of FY 2027. Apparel sales grew 12-14%, while in April 2026, food grocery grew 9%, restaurant chains 8%, footwear 7%, and overall retail sales grew at a rate of 7%. There could be sluggishness in the second quarter of the current financial year. However, a strong comeback in discretionary spending is expected during the festive season. FMCG: Impact of Inflation, Prices Increased by 5-10% Input Commodity Price Percentage Change in 6 Months Crude Oil: 29%* Coffee: 22% Palm Oil: 15% Polypropylene: 54% Packaging: 60% Paints: 18% (Crude prices from 3 months’ fluctuations Source- Bloomberg, Anand Rathi Research) Record AC Sales; LG, Voltas Sold 10-10 Lakh Units Each Despite a 10-12% price increase this summer, AC sales created new history. LG India sold 10 lakh ACs in just the first quarter of calendar year 2026 and has set a target to cross 20 lakh units for the entire year. Voltas touched the milestone of 10 lakh AC sales in the first three months of the financial year 2027. LG’s Director Sanjay Chitkara says that AC has now become a necessity, but penetration is still only 11%. This means 89% of the market potential still remains. Voltas’ MD Mukundan Menon said that this milestone is proof of consumer trust in the brand and the team’s capability.