The high competitiveness in the retail and FMCG sectors is a core trait which has been prevalent numerous years. Competitiveness among the subdivisions in any sector are an indication of the upward trending graph. However, in recent times this very competitiveness has become an indicator of the scarcity of demand and willing purchasers. The conditions at hand due to the COVID-19 pandemic have affected the lives of the mass from multiple directions causing the stringency and decrease in the willingness to purchase.
Alongside product quality and affordable price points, safety measures undertaken, utmost sanitization and “touch-less deliveries” are some of the factors which have taken high importance and are essentially correlated with the retailer’s diligence. Unemployment, reduction in salaries, stringent market sectors, affected trade are all by products of the pandemic that have affected the willingness and the purchasing power of the consumers.
Retailers are undergoing organizational hazards. Having to reduce workforce, at the same time maintain a work flow structure, creating a cost-efficient supply chain, maintain the stock of products, having to clear out the products which have been accumulated over the period of the lockdown, lack of cash flow and flush of investment and most importantly managerial issues. These are daunting the existing players of the respective sectors.
Whilst the smaller retailers and FMCG retailers are enduring a drastic downfall and scavenging for bits and pieces of business and consumers the big box retailers and conglomerates have taken this opportunity to capture the market share by providing the consumers with the product and service (delivery) to their door step with all enhanced measures, availing the flush of backend investments and industrial equipment allowing them to drive the costs down.
The pandemic has driven the masses to their electronic gadgets to communicate, educate, work, entertain and now in major ways purchase as well. This drive has pulled away an excruciating chunk of the retail and FMCG sectors decreasing their total market capacity and have left the smaller retailers high and dry. The uniqueness of the retail sector is being duplicated by E-Commerce provisions among the comfort of their homes.
E-Commerce websites are now providing the consumers with an enhanced experience of shopping which initially was the USP of retailing and shopping in physical markets. Despite the technological backwardness of the masses in India, with the provisions of an enhanced buying experience, customer friendly websites and applications and delivery to the doorstep, the provision this experience to the prospective customer which once undertaken could become a customer’s go-to mean of purchasing. The retail and FMCG sectors require to be revamped and “upgraded” to overcome the prevalent downfall. Some arenas that are being touched upon and should form the future of the core structure of these sectors are: Bringing the “store to home”; In-store appointments for safer consumer experience; Digital receipts for instore sales; Virtual shopping; Personalized assistance; Contactless Payments and more.
The retail and FMCG sectors are sectors which have existed through crisis after crisis and altered steps during the adversities. These sectors have the privilege and the leg space to alter and revamp as and when required with respect to the customer’s needs and whims and fancies. The retail and FMCG are the backbone of Sole Proprietorship in our country might take a longer period and more revamping but they will overcome the resilience in these sectors as they always have.
-By DEVESH JASNANI
References:
- https://www.accenture.com/us-en/insights/consumer-goods-services/coronavirus-consumer-goods-rapid-response
- http://syndy.com/3-ways-eu-1169-2011-affects-fmcg-companies/
- https://www.ey.com/en_in/consumer-products-retail/moving-towards-a-resilient-retail-sector-post-covid-19
- https://retail.economictimes.indiatimes.com/news/industry/survive-to-thrive-retailers-resilient-roadmap-to-recover/78053709
