Homeretail News

Coronavirus impact: Growth numbers across retail channels dip post lockdown

Coronavirus impact: Growth numbers across retail channels dip post lockdown

Coronavirus impact: Growth numbers across retail channels dip post lockdown
Profile image

By Priya Sheth  Apr 18, 2020 9:43:03 AM IST (Updated)

A sharp fall in growth was witnessed across retail channels after the lockdown was imposed in India owing to the COVID-19 outbreak. Data compiled by market research company Nielsen showed that after high double-digit growth in the first three weeks of March, growth numbers in traditional trade, modern trade, e-commerce, and cash & carry channels dipped.

Recommended Articles

View All

A sharp fall in growth was witnessed across retail channels after the lockdown was imposed in India owing to the COVID-19 outbreak. Data compiled by market research company Nielsen showed that after high double-digit growth in the first three weeks of March, growth numbers in traditional trade, modern trade, e-commerce, and cash & carry channels dipped.
"We saw some bits of pantry loading in the first few weeks of March. Challenges on the replenishment front resulted in the out of stock situation post the lockdown," said Sameer Shukla, West market leader, Nielsen Global Connect, South Asia.
In India, 'evolved hygiene' products and staples saw a high demand and growth rate. On the evolved hygiene front, hand wash, hand sanitisers, and floor cleaners saw high growth. On the foods front, packaged atta, packaged rice, breakfast cereal, cheese saw high growth.
A survey with top industry leaders conducted by Nielsen showed that supply chain and mobility issues have emerged as the biggest industry concern in this period. Other challenges that the FMCG and retail industry faced were production capacity shortage and sourcing of raw materials.
With the evolution in buying patterns and the availability of products, industry leaders have started reviewing and adjusting distribution strategies to focus more on online. The FMCG and retail industry is also working on reviewing overall 2020 business strategies and putting a freeze on any new initiatives planned, said Nielsen in a presentation.
Going forward in the post-COVID-19 world, it is expected that there will be a change in the way India shops. "Consumers will be bearish on discretionary spends in the upcoming months. The focus on health & hygiene facets and financial security may be some future behaviour shifts," said Shukla. Technology is also expected to act as a catalyst for convenient consumer experiences.
For our entire COVID-19 coverage, click here
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!