Reaction of FMCG companies in the times of Covid-19
Here, I have captured how various consumer products companies are reacting in this time that is saddled with the outbreak of pandemic caused by a novel Corona virus called Covid-19. It includes Indian companies as well as those located outside.
1. Marico: Product availability amidst lockdown is the biggest priority, not pricing.
2. ITC - ramping up production of sanitizer, handwash liquids and food items.
3. Amul - has increased its production by 20%. This increase in on account of two reasons :
consumers are hoarding out of panic; secondly consumers are shifting to milk-based products because there is an advisory against egg and meat.
4. Godrej Consumer Products - was planning to increase the price of its soap due to a 30% increase in input costs but has now shelved its plan and has increased production to meet the increase in demand. It has also increased the production of handwash and sanitizers.
5. HUL - has reduced prices by 15% for Lifebuoy sanitizers, Lifebuoy liquid handwash and Domex floor cleaners.
6. Amazon in India - has halted supplies of non-essential items to prioritize customer's critical needs.
7. In a few places, people have started to shift from the offline purchase of groceries to online purchases. This has prompted companies to reprioritize their supply-chain and investment.
8. A consumer company in China - As the timing of stores differs in various regions and also by the individual buildings in which they are housed, in this time of uncertainty, the on-ground team of stores was authorized to decide their timings without consulting their supervisors.
9. Starbucks - in-store menu ordering is stopped. The patrons have to order on mobile and collect the food on the counter. In the lobby, the number of seats was reduced to maintain the prescribed safe distance.
10. Budweiser Brewing Company in China - it made 7day, 30day and 100day plans. The 7day plan focused on employee welfare and social responsibility, including the distribution of protective gear. The 30day plan aimed to reshape the business and resume operations. The 100day plan seeks to grow the Chinese business post-crisis.
11. French luxury conglomerate LVMH has announced that it will repurpose its factory where it makes fragrances & cosmetics, instead, it will now produce hand sanitizer. This is a great opportunity for consumer goods companies to put aside short-term profit aspirations and become better corporate citizens.
12. Spirits manufacturer Radico Khaitan has reduced the price of ethanol to help manufacturers of sanitizers to reduce the cost of the product.
13. In the USA, spirits major Aneuhser Bush and Diageo have started to produce hand sanitizers in its factories to support meeting the sudden increase in demand.
14. A survey in Belgium showed that soon after the government announced on 12th March about the pandemic, crowd increased in supermarkets. Value of basket increased by 19.3% as people started to stock essential items at home. Normally, Saturday happens to be the biggest sales day but in this case Friday happened to the biggest sales day after the pandemic was declared on Thursday (12th March).
15. While Covid-19 has put millions of jobs at risk, there are few companies that are scrambling to fill positions. In the US, grocer delivery company Instacart is looking to add 3L gig workers and Walmart and Amazon are looking to hire 1.5L & 1L workers to meet the increased demand for online shopping.
1. Marico: Product availability amidst lockdown is the biggest priority, not pricing.
2. ITC - ramping up production of sanitizer, handwash liquids and food items.
3. Amul - has increased its production by 20%. This increase in on account of two reasons :
consumers are hoarding out of panic; secondly consumers are shifting to milk-based products because there is an advisory against egg and meat.
4. Godrej Consumer Products - was planning to increase the price of its soap due to a 30% increase in input costs but has now shelved its plan and has increased production to meet the increase in demand. It has also increased the production of handwash and sanitizers.
5. HUL - has reduced prices by 15% for Lifebuoy sanitizers, Lifebuoy liquid handwash and Domex floor cleaners.
6. Amazon in India - has halted supplies of non-essential items to prioritize customer's critical needs.
7. In a few places, people have started to shift from the offline purchase of groceries to online purchases. This has prompted companies to reprioritize their supply-chain and investment.
8. A consumer company in China - As the timing of stores differs in various regions and also by the individual buildings in which they are housed, in this time of uncertainty, the on-ground team of stores was authorized to decide their timings without consulting their supervisors.
9. Starbucks - in-store menu ordering is stopped. The patrons have to order on mobile and collect the food on the counter. In the lobby, the number of seats was reduced to maintain the prescribed safe distance.
10. Budweiser Brewing Company in China - it made 7day, 30day and 100day plans. The 7day plan focused on employee welfare and social responsibility, including the distribution of protective gear. The 30day plan aimed to reshape the business and resume operations. The 100day plan seeks to grow the Chinese business post-crisis.
11. French luxury conglomerate LVMH has announced that it will repurpose its factory where it makes fragrances & cosmetics, instead, it will now produce hand sanitizer. This is a great opportunity for consumer goods companies to put aside short-term profit aspirations and become better corporate citizens.
12. Spirits manufacturer Radico Khaitan has reduced the price of ethanol to help manufacturers of sanitizers to reduce the cost of the product.
13. In the USA, spirits major Aneuhser Bush and Diageo have started to produce hand sanitizers in its factories to support meeting the sudden increase in demand.
14. A survey in Belgium showed that soon after the government announced on 12th March about the pandemic, crowd increased in supermarkets. Value of basket increased by 19.3% as people started to stock essential items at home. Normally, Saturday happens to be the biggest sales day but in this case Friday happened to the biggest sales day after the pandemic was declared on Thursday (12th March).
15. While Covid-19 has put millions of jobs at risk, there are few companies that are scrambling to fill positions. In the US, grocer delivery company Instacart is looking to add 3L gig workers and Walmart and Amazon are looking to hire 1.5L & 1L workers to meet the increased demand for online shopping.
Very true. Nice. Well done.
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