The immunity chip from the devastating impacts of COVID-19 is unfortunately not available to anyone yet. The global pandemic has left a dark shadow on all aspects of life. Be it politics, businesses, schools, and relationships, COVID-19 has transformed how life is being lived. In this regard, researchers and analysts have also sought to examine the challenges the markets face.
FMCG markets, in particular, are facing several challenges. Let’s take a look at some of them.
1. Dampened Consumption
There is no denying that consumers have become cautious of their spending. They now focus more on saving for medical bills and costs in case someone in the family contracts the virus. Thus, expenditure is concentrated on essential goods instead of luxury items and items bought out of desire.
This has been a hard hit for the FMCG market. Stakeholders involved are now trying to come up with innovative ways to boost sales and demand for non-essential items in this regard. This is a challenge that might require a lot of trial and error.
2. Interrupted Supply Chains
With the pandemic coming in the form of waves, sudden lockdowns and border closures have become a norm. This has led to the creation of a backlog that has caused shortages in many outlets. For the FMCG market, this is not a good sign. If the items are not on the shelves, the losses are going to be enormous. Thus, most FMCG corporations are now focusing on shifting to shorter supply chains and keeping production processes closer.
3. Adjusting To The Work-From-Home Model
The work-from-home model is not a viable or feasible option for certain markets. The FMCG market is one of them. Logistics, transportation, and distribution require the physical presence of workers. With this crucial asset out of the equation, it’s not just unemployment that soars high but also the product shortage. Finding a way around this is a challenging task that lies ahead for the FMCG market.
The Key Takeaway
COVID-19 is here to stay for a while, and there is no knowing when it would subside, at what rate this would occur, and how soon things would be going back to the way they were. Thus, adapting and adjusting to the transforming landscape has become a top priority for the FMCG Market. Moreover, with shorter supply chains that are designed to absorb unprecedented shocks, along with online shopping, the motive to keep the wheels turning has picked up in momentum. All in all, what is left now for the FMCG market is to understand consumer needs and preferences, most of which are now catered to essential goods.