The FMCG industry has grown sharply, recovering to pre-covid levels within the month of June as India moved towards unlocking the economy post the three months of lockdown due to the outbreak of the novel coronavirus, per market research firm Nielsen.
As India moves through the Nielsen proprietary consumer behaviour thresholds many behavioural shifts are witnessed among its population. This report will mention some market and consumer trends that the Nielsen teams have analysed.
“With large number of people confined to their houses during the lockdown, cosmetics and sweetness categories were deprioritised within the lockdown phase categories like skincare, deodorants and hair colour had witnessed significant slowdown. The categories have witnessed a sharp recover in June,” Nielsen said.
Though it’s taken three months, we are quite returning to the quantity, which we had left behind at the highest of last year, and thus, the start of this year Q1 period. If that was 100 within the index, then Today, we are at 98, which is almost recovered. good news is that it is a transparent recovery but a slowish recovery, said Basu.
As per Nielsen report, the FMCG industry had a sharp decline in April. It started recovering in May (decline of 25%) and in June, it returned almost to pre-Covid19 level.
Nielsen is comparing the everyday sales data of December, January and February, and from June. It dropped March for the baseline comparison as in step with Basu, it had been the month when there was panic buying within the segment with many pantries uploading.
According to Nielsen Global Connect West Market Leader — South Asia Sameer Shukla, the expansion recovery is led by rural and traditional channels.
Rural is that the major contributor toward that recovery. it is not that urban has not recovered because it had an improved dip in April and may then gain. In rural areas, the dip wasn’t that significant, he said.
Over baselines of 100 of December, January and February sales, rural has now recovered to 109, while the urban trade is 92, while the traditional trade has come to 101 as against 78 of the fashionable trade, which contains big format retailers.
EMERGING CONSUMER TRENDS:
Consumers have had to adapt, change their perception and behavior over the previous number of months — variety of those changes could even be here for the long run.
1. Consumers harden Uncertainty.
2. Consumers Urge to interrupt Free With Safety And Immunity.
3. Consumers Cautious: Prefer ‘Contactless’, Home Delivery.
4. Home Cooking Becomes A Grounded Mindset.
5. Consumer Sentiment on ‘Vocal for Local’ Showing Steady Growth.
Conclusion:-
With the pandemic now taking a new course, consumers are embracing the situation and adjusting to the new normal. Months of restricted living has led to semi-permanent behavior shifts in consumer behaviour. While India is in the transitioning phase, consumers are monitoring the situation and will continue to be cautious in all aspects of life.
1. Wallet Readjustments.
2. Precautionary Measures Are Here To Stay.
3. Stay At Home Economy Aided By Technology.
4. Increased Sentiments Towards Local.
