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Now came back to earth with a bump after the lockdown announcement
Firstly retailers preferred to deal with far less SKU in each category
Secondly they are stocking less number of units for each SKU
While many companies were reporting normal pre covid sales ,a second lockdown has
crippled the sales.
This would have substantial implications for FMCG manufacturers in terms of which
SKUs to push for and finding the optimum frequency for servicing stores.”
There has been a huge uptick in demand for in-home consumption and with the recent
restrictions, this has accelerated.
While many thought the growth would be normal this year the second wave has made it
non sustainable.
At this point Customers favour smaller format neighbourhood stores and e-commerce
channels.
With beverage category pivoting on multi-serve packs at discounted prices across SKUs
(1.25 ltr at ₹50) and Lay’s new “at home” packs (at ₹30, ₹50 and ₹80).”
Assortment optimisation strategies become even more crucial as consumers streamline
their budgets.