Post-Covid FMCG scenario and new business models
The FMCG industry is unquestionably no exception and has left no stone unturned to sustain during this pandemic and do considerably well post Covid-19.
Vikram Agarwal August 19, 2020
Managing Director, Cornitos
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The COVID-19 pandemic is a challenge that has driven the limits of economies and businesses. As human beings, we have an inherent urge to survive and have been doing so by adaptation and transformation in our lifestyle. The FMCG industry is unquestionably no exception and has left no stone unturned to sustain during this pandemic and do considerably well post Covid-19.
We used the lockdown period to introspect and saw a paradigm transformation in consumer behaviour as they are resettling into reality as their new normal develops. People have changed their preferences to family packs and more budget-friendly packs as they want to continue to buy products that are affordable, budget-friendly, and at the same time high-grade quality. Therefore, FMCG players have been seen looking at their current capacities and accessible resources to reimagine products and make them suitable to consumers’ lifestyle and budget under lockdown.
The main challenge after the lockdown was to connect the broken supply chain and procurement of raw material, which is now being worked upon. An essential task was to get skilled workers and providing them with instructions for additional skill development which is the need of the hour keeping in mind these trying times. Production units are attempting to begin process efficiency at the micro-level through cost control on consumables, reducing processed waste, processing automation, guaranteeing collapse prevention, and enhancing product performance.
Given that production and workers’ capacities have been severely disordered due to the COVID-19-induced lockdowns, businesses struggling to meet the existing demand but are trying their best to do so. Currently, the focus is mostly on ensuring the production and supply chain and getting the right product in the right place. Companies push for attractive offers, along with their products for value-seeking Indian households amid intensified competition. These offers work well in a situation where businesses experience a deficiency in demand.
The company is now getting its employees back and so that proper social distancing can be maintained we have devised means and ways like proper and timely shifts, frequent workstation sanitation and PPE kits for them which help them to maintain proper hygiene while working and at the same time protect our employees from getting infected so that they can give their best. We can eventually deliver quality and hygienic products to our consumers. We have and will continue to take proper measures to ensure that our products do not come under any human contact and do not get contaminated.
Ultimately, over the subsequent few months, we will see a greater shift of workers while regarding all the essential lockdown criteria. That’s the prime focus during the crisis. Secondly, depending on how long-drawn it takes for the crisis to recover to normal, we are equipping some restoration strategies. Nonetheless, there will be a greater focus on health security and sanitation, and we will try our best to uphold it for the longest time.
While the crisis has upset a large part of our lifestyles, this disruption presents scope for more innovative opportunities. We are strengthening the demand for in-home consumption, and for that, we are concentrating on ascertaining new benchmarks, new policies with long term planning. Home deliveries from grocery shops to nearby areas and online sales have grown drastically and therefore; we are assuring the availability of our goods at all times to increase our sales. Cornitos is converging more on driving in-home consumption and selling to make consumers aware of the goods USP and also make sure that we communicate to our customers on how we take care of hygiene in production as that is one aspect that they are the most concerned about nowadays.
We have adopted modern technology and methods to come back. Application of digital conventions for work, online recruitment, online sales, e-procurement, and workflow management has enhanced our ability to cope with the pandemic aftermath. Brand social media handles are being used for digital marketing, online services, and e-commerce, as well as obtaining new customers and opening new businesses so that we have more people present and interacting online. Investing in online promotions and advertising on social media sites in this post lockdown period so that the consumers are aware of the products, and we are connected to them and are aware of their preferences.