September 17, 2020 | 01 min read
Share:
With shrinking wallets, there’s no doubt that the spending capacity of the average person has reduced. Millions of jobs were lost, and a vaccine to end the Coronavirus remains elusive. There’s much to wring our hands over, and there have never been more testing times than now.
However, it’s also the time not to lose our optimism. So here’s what we are telling you to do – junk all the rubbish predictions about what’s working and not on consumer spending.
Right off the bat, let’s examine the motherhood statements of all times.
1. Consumers will only spend on essentials
Sure, consumers are more mindful about where they spend their money. Big-ticket and impulsive buys have reduced. However, people are compensating for the lack of entertainment and travel by spending on groceries, hygiene products and home entertainment. A look at the number of new product launches in condiments, and packaged food alone indicates a new market trend. People are cooking exotic meals and are splurging on quality ingredients that allow them to entertain at home.
The pandemic has also triggered a demand for the hygiene category, and consumers are demanding healthier options for themselves and their families. There are market opportunities, and brands are already leveraging them by launching products outside of their portfolio range.
2. Now is not the time for premiumisation
There’s been a slower offtake for premium products; however, as per this ET Prime article, people are not staying away from premium brands that are essential to their daily behaviour. A recent survey on consumer trends run by Bizom showed that buying indulgent foods comes second to the winning trend of consuming more healthy foods.
Also, if a lot of kombuchas are flying off the shelves, all hope is not lost. Studies point to consumers buying fewer items than downgrading i.e. buying cheaper products. They are more cautious and try to save money, but they will review large expenditures first. Take a look at the chocolate category. While there was an initial fall in consumption, the demand for chocolates increased sharply from June onwards. Even moderately premium products began to do well. So the key to winning here is to cut down premium choices and focus on offering value.
3. Pricing strategies are all smoke now
A major concern for most CPG brands is how to manage pricing without impacting market share and brand identity. The pandemic has created enough disruptions in that regard. But shoppers, along with buying less, are also buying affordable. They are switching channels or brands that are more affordable. However, they are also sticking to their brands if the right value packs or promotions are available.
In times of pandemic, we don’t get to control the events or the impact on the bottom lines. The best that we can do is to focus on some simple CPG truths that even the past recessions have sworn by:
1. Offer value with price and pack sizes of essentials
2. Ensure availability at all times
3. Launch products that match the changing consumer interests
4. Keep engaging the consumer
We wish you a more stress-free week! Write to us at marketing@mobisy.com about any other half-truths that you encounter and if you want to discuss technological solutions to increase your market share.
Editor’s Picks
5 reasons why JioMart will put a stop to the Reliance juggernaut
Will JioMart make or break Reliance’s foray into e-commerce? Lalit Bhise does not pull any punches in our weekly opinion piece. Read more >>
Bizom Asset Management
Does the thought of retaining & motivating #retailers keep you up at night? Automate your loyalty programs with Bizom’s Distiman app. Watch video >>
Cookie | Duration | Description |
---|---|---|
cookielawinfo-checkbox-advertisement | 1 year | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Advertisement". |
cookielawinfo-checkbox-analytics | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics". |
cookielawinfo-checkbox-functional | 11 months | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". |
cookielawinfo-checkbox-necessary | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary". |
cookielawinfo-checkbox-others | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. |
cookielawinfo-checkbox-performance | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance". |
elementor | never | This cookie is used by the website's WordPress theme. It allows the website owner to implement or change the website's content in real-time. |
viewed_cookie_policy | 11 months | The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data. |
Cookie | Duration | Description |
---|---|---|
collect_chat_launcher_load | 1 month | This cookie is set by the provider Collect.chat. This cookie is used for enabling the chat function on the website. |
collect_chat_page_load | 1 month | This cookie is set by the provider Collect.chat. This cookie is used for optimizing the chat-box functionality by recognising the user. |
Cookie | Duration | Description |
---|---|---|
_gat | 1 minute | This cookies is installed by Google Universal Analytics to throttle the request rate to limit the colllection of data on high traffic sites. |
Cookie | Duration | Description |
---|---|---|
CONSENT | 16 years 4 months 14 hours 16 minutes | These cookies are set via embedded youtube-videos. They register anonymous statistical data on for example how many times the video is displayed and what settings are used for playback.No sensitive data is collected unless you log in to your google account, in that case your choices are linked with your account, for example if you click “like” on a video. |
_ga | 2 years | This cookie is installed by Google Analytics. The cookie is used to calculate visitor, session, campaign data and keep track of site usage for the site's analytics report. The cookies store information anonymously and assign a randomly generated number to identify unique visitors. |
_gat_gtag_UA_34263932_3 | 1 minute | This cookie is set by Google and is used to distinguish users. |
_gid | 1 day | This cookie is installed by Google Analytics. The cookie is used to store information of how visitors use a website and helps in creating an analytics report of how the website is doing. The data collected including the number visitors, the source where they have come from, and the pages visted in an anonymous form. |
Cookie | Duration | Description |
---|---|---|
fr | 3 months | The cookie is set by Facebook to show relevant advertisments to the users and measure and improve the advertisements. The cookie also tracks the behavior of the user across the web on sites that have Facebook pixel or Facebook social plugin. |
IDE | 1 year 24 days | Used by Google DoubleClick and stores information about how the user uses the website and any other advertisement before visiting the website. This is used to present users with ads that are relevant to them according to the user profile. |
test_cookie | 15 minutes | This cookie is set by doubleclick.net. The purpose of the cookie is to determine if the user's browser supports cookies. |
VISITOR_INFO1_LIVE | 5 months 27 days | This cookie is set by Youtube. Used to track the information of the embedded YouTube videos on a website. |
YSC | session | This cookies is set by Youtube and is used to track the views of embedded videos. |
yt-remote-connected-devices | never | These cookies are set via embedded youtube-videos. |
yt-remote-device-id | never | These cookies are set via embedded youtube-videos. |
yt.innertube::nextId | never | These cookies are set via embedded youtube-videos. |
yt.innertube::requests | never | These cookies are set via embedded youtube-videos. |
_fbp | 3 months | This cookie is set by Facebook to deliver advertisement when they are on Facebook or a digital platform powered by Facebook advertising after visiting this website. |