NEW DELHI: Discretionary spending to remain bearish in the next few months even as consumers surveyed stated they will increase online shopping by more 20 per cent, finds Nielsen India.
Data compiled by the market researcher shows that a steady fall was witnessed across most retail channels, barring modern trade in the last week of March after a high double-digit growth during the first three weeks on account of the nationwide lockdown imposed due to the Covid-19 outbreak.
While growth in the cash and carry trade channel fell 44 per cent and traditional trade fell 6 per cent, modern trade saw a six per cent growth during the first phase of lockdown period in March.
E-commerce, too, saw a dip in sales during March-end as shuttered warehouses and movement restrictions forced some e-tailers to temporarily halt fresh orders.
“The sharp decline in sales was propelled by shortage of staff at retail outlets. While there was some pantry loading by retailers till mid-March, constraints in replenishment of depleted stocks post lockdown dented sales,” said Sameer Shukla, west market leader, South Asia, Nielsen Global Connect.
The focus on personal hygiene, organic food, medical needs, fitness, education and financial investments are some of the key shifts in consumer behaviour,” he added.
In particular, 'evolved hygiene' products which include hand wash, sanitisers, and floor cleaners and staples such as packaged atta, packaged rice, breakfast cereal, cheese saw a high demand and growth rate.
Going forward, supply chain and cash flow will remain the biggest hurdle in the next six months, according to a survey with top industry leaders conducted by Nielsen.
In fact, top companies pointed out that they may now look to calibrate growth strategies by increasing focus on e-commerce and collaborating with regional brands.
Post COVID-19, Nielsen India also expects that there will be a change in the way India shops. “Technology is also expected to act as a catalyst for convenient consumer experiences,” Prasun Basu, president, South Asia Zone, Nielsen Global Connect said.
Nielsen India's second analysis on the impact of Covid-19 on the FMCG sales was on the basis of a survey of 1,240 grocers and chemists across the country.