Sacheerome has released an insightful study called The New World and Opportunities Post Coronavirus. The findings are an outcome of the brand’s collaboration with renowned market research agencies including Mintel, Euromonitor, McKinsey, and Ipsos, among others. The report provides insights on the strategic shifts the FMCG industry will face in the coming months and how clients can move into opportunities first.
The global pandemic has led to a change in the attitudes of consumers around the world. The report is divided into various categories including Home, Surface, Fabric, and Personal Care. It indicates that there is a steady growth in the launches of products with ‘clean’ claims. About 81% of consumers in West India have used hand sanitizers more than before compared to 67% in North India. There is also high usage of hygiene products among the older age groups. In April 2020 alone, there were 2.2 million searches for hand sanitizer, which is a year-over-year increase of 29X.
Speaking about this, Divya Arora, Director Innovation & Strategy, Sacheerome, said, “The coronavirus pandemic has brought about a drastic shift in consumption patterns which will have a major impact on the future scenarios. Our study looks at some of these trends and marks key action points for brands in the post-Covid19 era. Transformations within businesses and society take place during turbulent times that are ground-breaking & spark them towards a new land of challenges and opportunities. The FMCG segment is looking closely at the new consumer behaviours to effectively adapt and improvise at a never-before pace. We are proud to partner with some of the leading names in the market research industry for the study and hope that the insights will help businesses plan their future strategies better.”
FMCG companies are using differentiation in fragrance as a key selling proposition to attract consumers. The focus is on Citrus-y and Green fragrance notes in the times of COVID to impart a 'clean' association through their products. There is an increased affinity towards using traditional and natural fragrances and ayurvedic ingredients that provide holistic wellness, an area where Sacheerome has been doing research and developments for decades. There is also a demand for perfumery ingredients that have disinfectant, anti-bacterial, and anti-microbial properties, across categories.
Unlike many other categories, home care has responded well to lockdown. The industry continued a solid global performance growing 5 per cent in current value terms in 2018/19 reporting $159 billion in sales. Products such as liquid soap with disinfectant and hand sanitizers are observed to have experienced a dramatic boost in sales as consumers’ self-protection awareness has increased rapidly since the COVID outbreak.
People will go forward to adopt a new normal and get back to basics focusing on a minimalistic approach. There has been increased digital engagement and home has become the new universe for now with a focus on cleanliness, self, and surrounding. Overall, the findings show how there is an increased need for quality assurance, affordability, accessibility, and convenience. Considering this, FMCG companies are undertaking product development, market testing and launches faster than ever before. The usual timeline of few months has come down to a few weeks in some cases in order to tap into to changing consumer needs.
The world is changing more rapidly than ever, and consumer preferences will continue to shape with the time to come. The report highlights how businesses will need to key an eye out for these and be better prepared for future risks. The key takeaways for brands include a focus safe & hygiene products, wellness, and fast-innovation.