Monthly Archives: June 2020


The COVID-19 pandemic continues to impact most industries and especially retail. The situation remains dynamic and amidst all the gloom there are innovations across distribution and supply chains. Brands are foraying into new segments to remain relevant and even the Kirana continue to evolve rapidly. Let us take a look into how Retail fared in the past week.

 

Stores Have Opened. Are Customers Shopping?

India continues to ease restrictions intended to curb the spread of the Covid-19 virus. Early indications suggest that consumption has seen a spurt as the lockdown eased but economists and company executives remain uncertain about the sustainability of that pick-up.

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E-commerce policy may incentivize kiranas for joining an online ecosystem

India may soon incentivize Kirana stores which become part of the e-commerce ecosystem by converting their operations to handle both online and offline sales.

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Consumer packaged goods companies need to reset channel strategies, says Kearney

The Indian consumer packaged goods companies (CPGs) will need to “review and reset” their channel strategies and e-commerce, which scored good growth during the lockdown will not be a game-changer, a report by Kearney, a leading global management consulting firm, said.

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Retailers continue to see a slump in the biz; malls see a bigger dip in sales: Survey

After the central government’s announcement in early June, most states permitted malls and high street retailers to reopen. However, it was found that consumer sentiment continues to be at a low.

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India among 10 worst hit nations in retail and recreation; cafe, mall visits sharply fall amid lockdown

The situation for retail in the country remains dismal with almost all the states in India witnessing a slump in visits for retail and recreation-related activities in May as compared to the pre-COVID period.

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According to Walmart, Muted Economic Sentiment Will Move Customers Towards Value Purchase

The lockdown will fundamentally change consumer habits, and even after lifting of the complete restrictions, consumers will restrict movement to essential trips and prefer to stay indoors due to safety reasons and continue to order online and for delivery.

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JioMart tie-up to benefit kiranas hit by the loss of market share

As Kirana stores lose market share, a tie-up with JioMart may be a potential solution and could be beneficial for the viability of Kirana stores.

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How E-commerce Will Boost the FMCG Sector Post COVID-19

As COVID-19 continues to create havoc with markets, industries, and small businesses being shut, people in lockdown were abstained from buying non-essential items. Disruption of home deliveries meant that no one could buy any essential or non-essential items online.

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Johnson & Johnson Stops Sale Of ‘Clean & Clear’ Fairness Products In India Amid Criticism

Amid a debate over racial inequality mounting social pressure around the world, Johnson & Johnson has decided to stop selling fairness creams popular in Asia.

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COVID-19 impact | Emami to foray into personal hygiene segment under flagship brand Boroplus

The company also said it wishes to transform Boroplus, which is largely a winter skincare product, to an all-year brand with a new range of soap and hand wash, thus reducing the company’s dependence on seasonality.

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According to HUL, demand scenario to become clearer by the September quarter

Hindustan Unilever chairman Sanjiv Mehta said the state of the Indian economy will become clearer by the September quarter, adding that this will help guide government decisions on further moves to restore growth.

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COVID-19 poses a world of opportunities for reformation of the luxury segment

While it is true that the novel coronavirus pandemic and subsequent restrictions have upended businesses around the world – with stores selling non-essential commodities like fashion being the worst affected and shuttered for months together – it is also true that crises such as the COVID-19 pandemic present opportunities to think and act out-of-the-box.

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Amazon and Reliance eye stake in India retail pioneer Future Group

Future Group, India’s storied but debt-laden retail and consumer goods conglomerate, is in talks with Amazon.com, Reliance Industries, and other potential investors over a stake sale that could bring in $1 billion to $2 billion.

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Back to Business: Fashion retailers focus on shop by appointment, engaging consumers online

Now as the lockdown is being lifted in a phased manner across all the marketplaces in the country, fashion brands are coming out of their funk, focusing on adapting to changing needs amid the ‘new normal’ and working to ‘co-exist’ with the virus.

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Consumption patterns and behaviours have undergone a change due to COVID 19. With the unlocking in its third week, patterns and strategies continue to evolve. Retailers are increasingly resorting to digital innovations to adapt for the better. While there have been hiccups, some FMCG companies have seen their sales shoot up. Many have diversified their product portfolio too. Let’s take a look at all the innovations and recalibrations that took place in Indian Retail this past week.

 

Retailers turn to WhatsApp bookings, home deliveries to revive demand

Offline retailers that have seen footfalls slump at their stores, even as India re-opened for business, are resorting to WhatsApp bookings and assisting shoppers with virtual tours of their stores for ordering goods.

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The new retail paradigm is forcing retailers to redefine core strategies

In India, the two-month plus lockdown has affected consumption in unique ways leading to new strategy adoption by retailers.

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Five key factors that will determine the shape of the FMCG sector in the months ahead

High rates of reverse migration are likely to yield a rise in rural consumption in the coming months.

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Tata Consumer Products to focus on digital transformation

TCP 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.

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Godrej ramping up health and hygiene portfolio

Godrej Consumer Products Ltd (GCPL) is ramping up its health and hygiene portfolio with new products such as face masks, disinfectant sprays, wipes, and others under its “Protekt” brand.

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Lockdown impact: Maggi sales shoot up 25% as consumers stockpile instant noodles

Maggi, India’s go-to option for instant noodles, saw a significant boost in sales amid the coronavirus lockdown.

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At FMCG companies, production crosses pre-COVID for food & hygiene goods

HUL, ITC, Parle Products, Britannia, Marico are expanding production beyond pre-COVID levels.

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Soap business set to boom in coronavirus aftermath; other hygiene items also promising, says HUL

Soap business presents a massive business opportunity in the aftermath of coronavirus as more and more people adopt hygiene practices and become conscious of health concerns.

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Lockdown helps to revive the TV market after two years; 2-3 times surge in demand for large screen

After two years of declining sales, overall television sales have grown over 35-50% since last month when markets opened up, with the large screen models reporting 2-3 times growth.

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Unlock 1.0: Impact on the retail industry

Business models are bound to change and new models would definitely evolve.

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Decoding the online shopping landscape in India

E-retail in India has the potential to grow on a massive scale, thanks to the cheap and ubiquitous mobile data (enabling nearly 1 billion internet users by 2030).

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Although the unlocking is well underway, the atmosphere still remains uncertain globally. With various reports and news circulating around what is going right and what is not, this week’s “Indian Retail at a Glance” contains carefully selected and relevant articles for your perusal. Let’s dive in to see the week that was.

 

Consumers may spend less, seek value for money, says report

Indian consumer companies are tailoring marketing and output plans that will suit the thrift-focused buyer, with the lockdown-induced disruptions triggering health and income-loss concerns across the country.

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82-year-old Parle-G books ‘best sales’ in COVID times

Though Parle Products, the makers of the Parle-G brand, refused to share specific sales numbers, they affirmed that March, April & May have been their best months in over eight decades.

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In-home consumption surges as consumers binge on biscuits, salty snacks

Food categories like biscuits, salty snacks, instant noodles, beverages, edible oils are seeing an increase in demand.

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Shopping malls, restaurants, and hotels to reopen: List of dos and don’ts

The reopening will almost bring an end to the stringent restrictions imposed by the Centre to control the spread of the coronavirus disease. After the central government’s recent order, malls, restaurants, and religious places will reopen after a gap of more than 70 days.

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Agile Kirana stores conquered the COVID lockdown: Mediratta

Metro Cash and Carry saw a 40-50% rise in business from Kirana stores as demand from restaurants fell.

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COVID: Near-term outlook for FMCG sector ‘extremely uncertain’, says HUL

According to HUL, the near term outlook remains uncertain an highly volatile due to the evolving trajectory of COVID 19.

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Britannia Industries resumes 100% production: Report

Britannia Industries has resumed 100 percent production at all factories, except those in the red zones that had been shut for over two months due to the lockdown.

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NCR malls plan pre-booked visiting slots

In order to ensure the safety of consumers, NCR malls plan to use pre-booking of visit slots to.

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Jolt for malls as retailers, restaurants refuse to open

Large shopping malls, which have been feeling a pinch of the long lockdown received another blow on Monday as several top retailers & restaurants refrained from opening outlets due to a deadlock over new rental agreements.

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‘Consumers will embrace ready-to-cook, frozen meals’

With most people working from homes with limited dine-outs due to fears of viral infection, consumers may buy ready-to-eat and convenience food products said top officials from fast-moving consumer goods (FMCG) firms at the Mint’s Pivot or Perish FMCG in India: Bridging the Digital Gap campaign on Thursday.

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Unlocking 1.0 has begun and retail is raring to get back on track. However, the process is far from smooth. As the days progress, States are providing clarities and guidelines which will have a direct impact on retail. Let us take a look into the week that was and the transition from lockdown to unlocking.

 

COVID-19 Lockdown: Majority of consumers want to buy goods from Kiranas going forward, finds survey

The majority of the consumers in India want to buy from locally sourced items going forward that reflect the trust built by kiranas during the lockdown, according to a survey.

 

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Consumer MNCs ask employees to stay locked in

Firms prefer to play safe in view of rising infections despite lockdown being eased.

 

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Indian retail prepares for Unlock 1.0, seeks uniform reopening of stores

Uniform standard operating procedures like time restrictions on store operations; the movement of staff and delivery vehicles; product pricing restrictions; the number of staff and customers allowed in a store; or odd/even store restrictions should make it easier for retailers to do business.

 

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What FMCG players need to do to thrive once coronavirus ends; innovation, adaptability key to survive

To stay productive, FMCG players have been seen looking at their current capabilities and available resources to reimagine product offerings and make them relevant to consumers’ lifestyles under lockdown.

 

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Coronavirus crisis: Opportunities aplenty for consumer goods companies, says Nestle MD Suresh Narayanan

The Coronavirus pandemic has led to certain stated changes in consumer behaviour, which going forward, says Nestle MD, Suresh Narayanan, could create a host of new opportunities for consumer goods companies like his.

 

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Govt rejects Flipkart’s plan to enter the food retail

The government has rejected Flikpkart’s proposal to enter food retail citing regulatory issues.

 

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Surviving COVID-19: SMART Stores

The 12 million neighbourhood kirana stores in India have now emerged as the new heroes, as the quest for essential items become hassle some due to lockdown restrictions.

 

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HUL CEO says the product inventory range will be smaller and simpler hereon— analysts believe others may have the same plan

By reducing SKU’s, manufactures can bring efficiency to their supply chain.

 

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ITC Partners with Amway for a new fruit beverage under B Natural brand

B Natural ropes in Amway to take its new immunity-boosting juices to consumers.

 

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Retailers threaten to exit malls

The battle between mall owners and their tenants is set to take an ugly turn.

 

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