Industries

Fast Moving Consumer Goods
(Foods, Skincare)

Scenario

Increased focus on health and hygiene. 91% are washing hands more often. 47% claim increased toilet cleaning more so in rural (49%) vs urban (43%).

Sales of grooming products such as hair colour, make-up, shaving products and deodorants have dried up with people not indulging much in grooming as they are staying at home.

Demand for cheese, noodles, frozen non-veg snacks, butter, rice, digestive biscuits, chocolates and lemon shot up from 50 to 150% sequentially in the first three weeks of the lockdown.

Traditional trade witnessed the sharpest decline followed by modern trade, cash & carry stores and e-commerce.

Source: Economic Times, 2020, Kantar Report, 2020.

Scenario

FMCG sales saw a sharp decline in the last week of March. Fall was propelled by supply and retail points issues.

Source: Nielsen Report, 2020.

EXPECTED
BEHAVIOURAL
CHANGES

Stocking up on goods & bulk buying
may become the new norm.



People fear that the situation might relapse. As a result there may be panic buying and hoarding of products.

People feel comfortable about buying bigger family packs because they might be staying-in at home more often.

People may focus on keepingnon-essentials just as theyfocus on storing essential products.

Immunity, freshness, origin story might be sought.



As people may spend more time in the kitchen or being sedentary, they may start thinking about their health and nutrition more seriously.

More people may be trying out new recipes like Chinese, Italian etc. With new items to cook, they may seek the support of products that bring out the authentic taste of things.

Experimentation and search for the authentic.



Immunity, less fat, less sugar, fortifying stories may resonate well with people. Mom’s recipe, organic products, freshness may become defining factors.

Huge leaps may be made in terms of complexity of cooking like people trying to make desserts at home like caramel custards, gulab jamuns. Also, baking at home may witness a rise.

Rise of shortcut experts and snackers.



Ready to eat, ready to cook, semi-processed food that is easy to cook and great to eat.

Since people might be spending more time at home, there may be more consumption of beverages like tea, coffee, snacking and indulgent categories.

Ordering gets tech enabled.



People may get more comfortable using e-commerce sites, apps, and even their society’s Whatsapp group for ordering essentials.

Narcissism to Self-Care.

Enhancement routine to
cleansing and nourishing beauty routines.



Beauty may shift to higher order benefit of self-care from looking good.

Since people won’t be going out as much, the need of ‘looking good’ and the use of makeup products might shift to ‘feel good’ products or pampering products like face-masks.

People may go back to trusting the age-old remedies. Organic, natural and ayurvedic products gave them trust and relief. Beauty may shift to higher order benefit of self-care from looking good.

OPPORTUNITIES

Food Choices would be taste and convenience led.



Food experimenting with cuisines may create a need for the tight spices and condiments, exotic vegetables and premium oils.

Chocolates, noodles, soups and cereals maybe the key to managing impatient kids in the house.

Elaborate breakfasts that are becoming common may increase the preference of products like spreads, allowing more brands to fit in.

Whereas frozen foods, vegetables, tetra pack milk, ready to cook and ready to eat may be the easy breezy category to use.

Health may permeate all foods
at all levels.



Chyawanprash, honey, tea or health drinks that boost immunity, protein shakes may be additions to the diet.

Even indulgent products like chocolate, sauces, syrups might start integrating health into their product story to build relevance.

Convenience in ordering.



E-commerce & WhatsApp would be better integrated. Ordering may become easier and online channels may play a bigger and more important role.

New beauty need gaps:
Home makeup, do-good skincare, morning-noon -night
beauty rituals.



Products that provide pampering and self-care may be more relevant. Protection from sun, pollution and dust stories may be replaced by deep nourishment, vitamin replenishment stories etc.

Home makeup as a category could come up representing the clean, light makeup that you need to look fresh and bright on video calls.

Because people might have more time to spend, beauty category could become more specialized with more focus on cluster of products like hand creams, foot cream, and so on.

There are opportunities of introducing more occasions and rituals in beauty like morning, noon and night rituals to break the monotony of the day for people. People would want to spend time on more involved and time consuming beauty regimens.

Destressing, freshness, health benefits
may pick up as will the influence of KOLs.



Benefits of fighting germs, bacteria, making skin healthy might be some focus areas. Fragrances and the experience of freshness may also become important for beauty. So products that provide a relief from sensorial monotony may be loved.

Bathing experience may not just be about cleansing but also about destressing. So more products during bathing can be introduced like bathing oils, aromas.

People may spend more time watching their favourite influencers and more likely to be influenced by them.

Authentically natural or ayurvedic.
DIY may be new favourite.



Authentic ayurvedic and home remedies may be valued as people may now have newfound respect for remedies that are tried and tested.

Do-it-yourself products and affordability will be a virtue that people may seek.