There is no doubt that coronavirus pandemic has taken the whole world by storm and has strongly affected life and living of the multitude of people around the globe. If we talk of India, the country has been under long government-mandated lockdowns, with citizens being asked to stay indoors and avoid any unnecessary travel as the novel coronavirus continues to spread its vicious impact to more parts of the country. Be that as it may, with the number of infected cases rising steadily and the Indian government trying to flatten the growth curve, the situation continues to be grim today.
Among several things, there is a general feel among the consumers that the pandemic would cause major hurdles to employment and business growth in India. And if we focus on consumer shopping habits, we will find that they are also changing in a big way over the course of the crisis. Some of these trends can be highlighted as below:
1. The act of Hoarding of Essential items: At a time when people are caught up in the fear of contracting the virus, the nationwide lockdown has led to severe disruptions and widespread confusion among people. This resulted in panic-buying and people hoarding essential items such as rice, wheat, packaged food, home care products, etc.
2. The need for Reducing expenses: With a lot many people expecting COVID-19 to negatively affect their finances, consumers are becoming careful about their spending and trading down to less expensive products. They are persistent to continue spending on essentials, such as grocery and household supplies and are cutting back on most discretionary categories like apparels, shoes etc.
3. The increased Focus on Health & Hygiene: With the information about the need for strong immunity to prevent infection going viral, the consumption of ayurvedic and traditional foods to boost immunity like chyawanprash, vitamins, traditional supplements has increased to help keep the people safe. Moreover, awareness campaigns on the importance of washing hands with soap and using sanitizer/disinfectant have resulted in a spike in their usage.
4. The major Shift towards Online shopping: In the wake of the long-drawn lockdowns, people were forced to switch to online shopping because of movement restrictions and social-distancing norms even for bare necessities such as vegetables and groceries. So it is that online grocery providers like Amazon, Supr, Daily, Grofers and Big Basket have witnessed huge surge in demand. Players in segments such as food delivery, online beauty retailers like Zomato and Nykaa respectively have started delivering essentials to people at their doorstep. Not to be left behind, even Local Kirana shops have now started to deliver online.
5. The clear Increase in usage of Digital Platforms: The act of staying at home due to the lockdown has seen consumers spending more time on digital platforms. Social apps, Gaming apps, News apps and video editor apps have witnessed huge growth. Today, OTT platforms and TV are the preferred choice for entertainment. This has also enhanced the Data consumption by consumers in addition to WFH (Work from Home).
6. The explicit Preference for small packs: With a view to control their household expenses, consumers are preferring to buy small packs of FMCG products, especially in the rural areas. Therefore, companies have launched small packs in various product categories for the same.
7. The strong Negative impact on certain industries: Apart from other things, the outbreak of novel coronavirus has negatively impacted several industries like Restaurants, Food Delivery, Hospitality, Tourism, Retail, Multiplexes, Aviation Health/Fitness (spa, salons, gyms) and many more.
Hence, Business Organizations today need to closely monitor the changes in Consumer Shopping habits and react proactively to transform themselves in order to face these challenges in the marketplace.
