The outbreak of COVID-19 has changed the way the Indian consumer is shopping. FMCG purchases in March and April were up 12 percent against 2-4 percent prior to the lockdown.
"Prior to lockdown we used to see big purchases in week one & then small purchases for the rest of the month. Post the lockdown, we had a huge week one of the purchases & then a huge week four as well," said K Ramakrishnan, Managing Director, South Asia, Kantar Worldpanel.
During the lockdown a large number of FMCG companies faced labour and distribution related challenges which led to a lesser amount of goods reaching end consumers. "We have seen a marginal drop for branded products across categories, could be due to availability," said Ramakrishnan. Demand for products like biscuits and salty snacks was exponentially higher than normal, he added. From a household perspective, down-trading has not happened.
The household and hygiene category saw good traction during this period. Annual household penetration for hand sanitizers jumped from 1.5 percent to 16.3 percent, according to Kantar Worldpanel.
"Focus on hand & home hygiene, weekly distribution of FMCG purchases could be here to stay," said Ramakrishnan, adding that the importance of pharma as a channel of distribution has gone up quite a bit.
First Published: May 21, 2020 8:14 PM IST
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