NEW DELHI: A majority of top industry leaders, who are optimistic about good business performance in the next four months, said that businesses are seeing some respite from challenges with lockdowns easing up across India.
Ramping up production, difficulty in sourcing raw materials, getting products to retail outlets, limited opening hours/store closures were the key challenges faced during the lockdown.
With the economy unlocking, however, some of the big challenges that keep the corporate leaders worried are the limited opening hours of outlets in a day and decline in consumer demand, showed a study by market research company, Nielsen.
“In this constantly evolving situation, some emerging consumer trends are increased adoption of e-commerce and seeking products delivering protection for self and family from germs/ bacteria,” said Sameer Shukla, executive director, retail intelligence, South Asia at Nielsen Global Connect. “These consumer needs are resonating with corporate leaders, who are crafting strategic actions.”
During the period between March and August, for instance, companies launched around 1,900 products in the health and hygiene category compared to only 100 between September 2019 and February. Similarly, while the number of new launches in home cooking increased substantially, the pace of product launches in categories such as beauty and impulse (chocolates, biscuits, salty snacks) slowed down during the period.
“There is a visible sign of consumers either downgrading to more affordable offerings or shifting towards value for money large packs,” said Shukla. “Retailers, too, are rationalising assortment by operating with fewer items to focus investment and shelf space on fast moving items.”
In the e-commerce space, major categories such as fashion witnessed a restrained recovery and there has been greater demand for mobile, home appliances and electronics online during the unlocking period.
“In e-commerce, the contribution of phones priced over Rs 15,000 doubled during the unlock period and there has been a 26% increase in order contribution in home appliances and electronics categories as restrained spending during lockdown is enabling consumers to prioritise spending on categories to improve quality of living at home,” said Shukla.
Ramping up production, difficulty in sourcing raw materials, getting products to retail outlets, limited opening hours/store closures were the key challenges faced during the lockdown.
With the economy unlocking, however, some of the big challenges that keep the corporate leaders worried are the limited opening hours of outlets in a day and decline in consumer demand, showed a study by market research company, Nielsen.
“In this constantly evolving situation, some emerging consumer trends are increased adoption of e-commerce and seeking products delivering protection for self and family from germs/ bacteria,” said Sameer Shukla, executive director, retail intelligence, South Asia at Nielsen Global Connect. “These consumer needs are resonating with corporate leaders, who are crafting strategic actions.”
During the period between March and August, for instance, companies launched around 1,900 products in the health and hygiene category compared to only 100 between September 2019 and February. Similarly, while the number of new launches in home cooking increased substantially, the pace of product launches in categories such as beauty and impulse (chocolates, biscuits, salty snacks) slowed down during the period.
“There is a visible sign of consumers either downgrading to more affordable offerings or shifting towards value for money large packs,” said Shukla. “Retailers, too, are rationalising assortment by operating with fewer items to focus investment and shelf space on fast moving items.”
In the e-commerce space, major categories such as fashion witnessed a restrained recovery and there has been greater demand for mobile, home appliances and electronics online during the unlocking period.
“In e-commerce, the contribution of phones priced over Rs 15,000 doubled during the unlock period and there has been a 26% increase in order contribution in home appliances and electronics categories as restrained spending during lockdown is enabling consumers to prioritise spending on categories to improve quality of living at home,” said Shukla.
