Effect of Covid-19 on FMCG Sector
The year 2020 brought situations that no one ever expected. Covid-19 has changed the face of the world, in all ways such as economically, politically and social
The year 2020 brought situations that no one ever expected. Covid-19 has changed the face of the world, in all ways such as economically, politically and socially. Although, this harsh impact has been most felt by the economic sector of the country. The advent of the lockdown has severely impacted the FMCG sector all across the country. COVID-19 crisis has introduced many changes in the consumer behaviour pattern. FMCG is defined as fast-moving consumer goods. These products have a very limited shelf life, and as the name says they are fast-moving in nature. This means that they move through the supply chain quickly, from distributor to producer and then to the consumer quickly. These low priced products are sold quickly, as they are high on consumption. It is the 4th largest sector of the Indian economy and holds major sub-sections such as food and beverages, household and personal care etc.
If we go back to the pre-covid era, then the FMCG business was already reeling, due to the global slowdown. The Indian FMCG market has been witnessing slow growth for the past 15-18 months. In the quarter that ended in March 2020, the FMCG witnessed a decrease in growth rate, which was further made up by the increase in growth rate between late December and early 2021. The lockdown imposed on Mar 21, again declined the growth curve. FMCG owners are already trying to deal with these changes, by offering lucrative discounts to the consumers and maintaining or increasing their market shares.
On March 20, came the unprecedented coronavirus in India. Looking at the current picture, it's believed that it's going to stay for a while and the impact it is causing will be everlasting. It has established a new normal that comprises masks and sanitisers and we all have adapted to it. This will permanently affect what we buy and how. Naturally, such unfavourable constructions affect businesses and the economy drastically. There is one more reason that the FMCG sector has been the worst hit by covid because this sector is directly driven by people. Any change in this sector will impact people on a large scale. It is imperative to understand that FMCG needs constant adaptation and revolution to stay relevant and attract new and more consumers.