Impact of COVID on

consumer behavior towards

FMCG
 OBJECTIVE and Approach
Objective: To study the impact of COVID on consumer behaviour toward FMCG
 The study aims to find change in consumer perception, awareness, change in product mix shopped by consumer, adoption of
omnichannel business model by FMCG in India.
 Identify the factors influencing the purchase decision towards FMCG products.
 Analyzed consumer buying behaviour both online(e-commerce) and offline.
 Study of industry trends and FMCG market scenario in India to have a better understanding of the topic.
 Insights from FMCG experts and industry leaders are also incorporated for better analysis.

The scope of this study and findings is purely based on secondary as well primary research.

Focused Group
Market research reports Discussion In-Depth Personal
Interview

To understand the changes that

the pandemic has brought in the
lives of consumer for buying the
FMCG products and see for any
possible shift in the pruchase
patterns
Two Focus Group Discussions conducted
with 7 people each to understand key factors
associated with buying decision since Covid
10 In-Depth interviews to
understand what all things are
now being considered before going
for purchase of the FMCG
products since the pandemic
 Consumer behaviour CONCEPTS
Consumers form new attitudes & change existing ones as a result of new strong information (COVID e commerce).
Formation of attitude:
•NEED FOR COGNITION during COVID: Attitude –Behaviour Gap reduced for online purchases. (pre-
• Consumers are forming positive attitude in COVID: its easy ,comfortable but didn’t buy online)
response to steps been taken by Amazon, swiggy Q. How did it the attitude and reason behind it (motivations)
for non contact delivery and sanitization. change?
• SITUATION FACTORS- low human intervention is sought FMCG: Ego Defensive approach: people tend to protect
for . Gulab Jamun and HaldiRams. themselves from self doubt and opt for security and confidence. Ex:
Local Shop Gulab Jamun and Haldiram’s packed Gulab Jamun .
TRI COMPONENT MODEL: A2B in COVID Value Expressive Approach : ITC rechristens confectionery
times brand Jelimals as ‘Jelimals Immunoz (vit C and Zinc added –to boost
COGNITIVE
immunity in children).
(packed,
human
intervention,healthy)
Knowledge function appraoch : Nutraceuticals. Some instances
of Nutraceutical products are Probiotics, Fortified energy drinks,
Vitamins and Minerals etc. The category is positioned in between Food
CONATIVE & Beverages and Pharmaceuticals ex: Chavanprash, ITC wonderz milk
(intent to
buy)
in kerala in 2019.
E shopping: Utilitarian approach : Going out spread Virus,
online shopping would protect one form virus.
ELABORATION LIKELIHOOD MODEL: Majority of Cosumers make
low involvement purchases because they are tired of locked down
AFFECTIVE
(trust brands
for hygiene
scenario. Thus Peripheral route to persuasion would change their
factors)
attitude.(visual cues like wearing gloves, mask, COVID proof sealing)
Market Research and Trends
FMCG Market- India Scenario: Accenture consumer pulse research report

 The FMCG sector is India's 4th-largest sector with World-wide

household and personal care accounting for 50% consumers
of FMCG sales in India.
 Market Share: India's FMCG market was valued at
$52.75 billion U.S. in 2018. This was expected to
45000
increase to $220 billion by 2025.
 Growing awareness, changing lifestyles and easier
access have been the key growth drivers for the
sector. 2500
 The urban segment ( revenue share of around
INDIAN
55%) is the biggest contributor overall revenue CONSUMERS
generated by the FMCG sector.
Trends:

 Retailing: consumers develop online grocery shopping habit

 Packaged and fresh food: stockouts and price volatility make staples a luxury
 Beauty and personal care: focus on personal hygiene while beauty takes a backseat
 Home care: floor cleaners and toilet cleaners were some of the few categories that 90% 71%
exhibited stronger growth compared to the pre-COVID-19 period
 Consumer health: a surge in demand for immunity-positioned supplements, including OF RESPONDENTS ARE LOOKING FOR
Ayurvedic medicines and products MAKING LASTING SAFETY, QUALITY
 Consumer foodservice: consumers move back into kitchens, loss for dine in AND TRUST
CHANGES TO
restaurants, increase adoption of online food delivery service. eg Zomato , Swiggy etc.
THEIR SHOPPING BEFORE BUYING
 Why consumers buy OFFLINE? Why consumers buy ONLINE?

Being Able to Shop in a Wide Variety and Avoiding

Convenient Way Choices Crowd
Consumers like to see or Instant Gratification Menace
feel products in person

Low Cost and Comparison of

Being Able to Shop 24 x Better deals Prices
7

Concerned about the Don’t want to spend on

privacy and data protection delivery
No contact delivery, Safe
Reduction of Expenses
payment option
Customer Journey – Offline Store
Customer Journey – Online Store
 Key points that came out of our focus group
discussions

Brand & trust-worthiness is Non-perishable/Durable goods Ready-to-eat food is

considered before buying are purchased online while bought frequently than
immunity and health products perishable ones are bought offline ever before

Apps that were never used Expenditure on non- Increase in the purchase of
before are now used essential things has hand sanitizers and other
regularly for online buying significantly reduced disinfectants for home
 ConsUMER In-depth interview
Male, 42,excerpts
Consultant,
working in Pune
“After getting to know how deadly this virus can be, we stopped going outside
as much as we can and started ordering groceries and almost every other
thing that we require from e-commerce websites like Big Basket, Grofers,
Amazon and Flipkart for essentials and other daily requirements. Post this
we keep it aside for 2 days and then on the third day, we wash it thoroughly
with the help of newly launched cleaner for vegetables. Only for immediately
perishable products like milk, curd and bread that we clean immediately”

Female, 34, IT professional,

Bangalore
“I always keep an extra pair of face mask and another small bottle of hand
sanitizer with me. Never thought that I would be carrying all these with me, but
times have changed and I have become more vigilant about keeping my hands
clean regularly after visiting any retail store for purchasing. Since the pandemic,
most of my spending is on purchasing sanitation and hygiene products and
my expenditure has significantly reduced consuming fast foods””
The decision drivers - Pros and cons of online vs offline shopping
ONLINE OFFLINE

Range of choices Touch and feel

PROS Shop 24x7 Instant purchase

discounts Quality experience

Quality issue exhaustion

CONS Size and fitting expensive

Waiting period Crowd

Conclusion Limitations

Shift in mode of Limited to consumables in

purchase FMCGs

There has been a Our study majorly aimed

significant shift from at consumables in FMCGs
offline to online buying (groceries etc.)

change in basket Rural Scenario

Hygiene items such as Our study aimed to

handwash, hand sanitisers understand consumer
and masks are a common behaviour in urban India
part of the cart now