Tata Consumer Products Limited (TCPL) expects a long term shift in consumer behaviour due to the viral pandemic, while in short term an increase at-home consumption with a reduction in orders for take-out or deliveries is expected.
According to the company’s annual report for 2019-2020, the company is innovating with new marketplace models and expects a larger play in the foods and beverages businesses, where TCPL is expanding its portfolio and sharpening capabilities for the longer term.
It also sees 'digital transformation as a key driver' for growth of the company going ahead. "We see digital transformation as a key driver for growth and we are strengthening our capability in this area, including a digital platform for commodity buying, enabling the entire supply chain from demand planning to procurement and embedding digital technology and decision-making at the frontline of the sales organisation," TCPL CEO and MD Sunil D'Souza said.
Recently, the company has also tied up with several delivery providers and e-commerce partners to accelerate its digital agenda in a bid to take advantage of the new world realities. D'souza added there have been significant changes in consumer beliefs, habits and buying patterns during the pandemic.
TCPL, which owns popular brands like Tata Salt, Tata Tea, Tetley, Eight O' clock and Himalayan Water, said it has marked a new strategic direction for the company with accelerated expansion into the Rs 6 lakh crore Indian FMCG industry.
On the outlook, the company said that there will be a stronger focus on quality and hygiene resulting in consumer preference shifting from unbranded to branded options. "Consumers will proactively look at health and wellness options in their purchases, including traditional and preventive measures. There will be higher growth and demand of staple products (such as pulses, coffee) for in-home consumption, in comparison with discretionary items which is in direct contradiction to the trend witnessed in the last few years. Besides, it expects there would be a rise of value-conscious, given the uncertainty of the unprecedented crisis, it said.