COVID

Reference:

https://widgetbrain.com/demand-forecasting-what-is-it-and-how-will-it-benefit-youroperations/#:~:text=The%20benefits%20of%20demand%20forecasting,should%20be%20st ocked%20in%20inventory. https://www.beekeeper.io/blog/trends-operations-management/ https://www.universalclass.com/articles/business/the-art-and-science-of-forecasting-inoperations-management.htm

Emerging Managers

Ms. Garima Soni MBA Batch 2020 -2022 ICFAI Business School, Hyderabad

Switch in Consumer Behaviour Towards E Commerce During COVID 19

E - Commerce refers to buying and selling of goods In India, sales of Fast-Moving Consumer Goods and services through the mode of internet and (FMCG) online are expected to go further 4 billion transfer of money through the online platform. dollars by 2022 and 5% contribution is of online The E - Commerce industry is growing researcher Nielsen. Right now, only 2% has been tremendously in the Indian market. As cheap 4G contributed by the online FMCG. internet packages in India obviously gives a push to packaged consumer goods, said by market these industries. Sales keep on growing as the According to the FMCG companies, there was a mobile penetration with increased data sudden jump in demand around 15-45%. Even 2-3 consumption made available every product online weeks earlier before the lockdown, there was a whether it is being done by small or large huge demand for FMCG goods, sanitizers, etc. companies. Products such as rice, flour, pulses, edible oil, sugar, biscuit, tea, instant noodle, frozen food, As COVID-19 hit in India, people were scared to handwashes, and floor cleaners were flying off the go out of their homes. They were even hesitant to shelves from almost every state of India. Even go out to buy essential goods. People started giving small, medium grocery shops are going towards the preferences to E - Commerce sites to buy essential online selling due to huge demand, and they are goods. Customers were shifting their buying doing it by creating their own website or joining behaviour from offline retail stores to online stores. different platform like Amazon, Flipkart, Grofers

and other e-commerce industry to increase the sales convenience but now it has become a necessity to and fulfill the demand of the customers. protect oneself from the virus by avoiding crowded places. The Covid-19 lockdown has resulted in a Panic buying of FMCG goods also took place and rise in online sales, as it has also been estimated that everyone started buying goods in huge quantities to the industry would have a growth of 200 billion store the goods for more than a month. Due to this, dollars much before the predicted 2026. it becomes very difficult for FMCG companies to complete the demand of the consumer. Some IMPACTS FMCG companies like ITC Ltd, Parle Products, Amul, and Godrej Consumers were going out of 1. Convenient and safe stock. Shortage of delivery persons because of the huge like is a way preferable and an entire lot safer than online demand for FMCG goods also happened. heading call at this COVID-infested reality we’re Online Grocers like Bigbasket, Grofers, and now living in. Coronavirus aside, there’s also NaturesBasket were going out of delivery guys due something to be said about shopping from your to the surge in demand and because of that, these bedroom, without having to venture out, wait in companies were given 2 weeks or sometimes 3 lines, battle weather, and all the other challenges weeks ahead of dates from the time they put on that go along with consumerism. delivery option. Those people who haven’t used 2. Saves time any type of online shopping platforms were also signing up and putting orders. In an age where time is a scare commodity, E - Grocers like BigBasket, Grofers, and Amazon the buyer. Since, 63% of consumers start their says that their sales are up by 100% and there is shopping journey online, it is sensible to be ready more jump in the sales of staples, biscuits, frozen to buy where you already are. No need to head out, soaps, and handwashes. FMCG industry is trying to shop in – store, wait in line then journey back home speed up the supplies of the goods, so that there once you can access a greater product variety at a should be no shortage of goods. There is a major lower cost from the comfort of home. shift from 46% to about 64% in online shopping in 6-9 months. Also, as compared to 59% of 3. Customer data consumers, around 46 % of consumers are going to Shopping when you want from where you would shopping online provides massive time savings to buy from physical stores. A survey conducted Selling online gives the retailer access to a showed that nearly 74% of consumers prefer to buy goldmine of customer data that’s just not accessible online post the lockdown. through brick-and-mortar retailing. Not only do online consumers typically provide their name, As earlier, shopping online was a matter of email address, and telephone number when check-

ing out or registering on a site, but they also provide audiences that you simply wouldn’t have access to. a wealth of consumer behavior and demographic By using multiple online touchpoints, you can data, available through Google Analytics which access customers from all angles by going where will help online retailers optimize the buyer journey they already are, like social media, forums and and market more effectively and accurately. E- Google search. retailers also are ready to nurture and retarget consumers precisely, based on their stage within the CONCLUSION journey. For example, using data insights, an online retailer can email potential customers who have The study says that customers who have never abandoned their carts, motivating and reminding bought anything (FMCG) goods before have shown them to see out their purchase and may even use interest in buying FMCG goods online. Over 16% retargeting advertising to nurture leads that haven’t sharp jump in the new customers who freshly yet purchased. signed up to buy goods through an online platform. And over 90% of customers are satisfied with 4. Wider customer base buying (FMCG) goods online. These number clearly shows that many of the new customers are With e-commerce, geographical boundaries shifting towards the online platforms to buy become inconsequential. You could sell your (FMCG) goods online. Not only the number of new products to internet buyers across the country or customers has been increasing but also the maybe across the world. You’re not limited to satisfaction level is also increasing dramatically. It shoppers in your physical location. The internet clearly shows that the E-commerce industry is also exposes your retail store to different niche going to boom in the future.