Growth due to an increase in rural consumption: Reverse migration and increase government expenditure through MNREGA and other public projects is expected to increase the demand for the rural sector. According to the World Bank report, 40 million internal migrants are impacted by the nationwide lockdown.

E-Commerce demand: Most FMCG companies are collaborating with the delivery companies like Dominos, Zomato, BigBasket, Swiggy to ensure that the product reaches to the customers ordering online.

Brand diversification: In order to grab the opportunities offered by COVID-19 every FMCG company has launched its brand in hygiene categories of sanitizer and hand wash.

Focus on Cost control: Due to nationwide lockdown every company is trying hard to enhance the profitability and controlling cost is a major tool by which the companies can improve its margin. Using techniques like tighter credit terms, wise advertising, and digital marketing companies are trying to cut their cost

Q1 FY21 positive for most companies: Companies selling packed and staple foods have observed supernormal sales with the increase in home consumption of hygienic and packed foods. Biscuit companies and ready to make food companies have observed a sudden jump in sales due to lockdown.

Author: munimji