The good news is that 2021 is starting with not only hope but also a whole lot of momentum.
In the last quarter of 2020, consumer goods moved faster than ever before. In Dec-20, kirana sales grew in double digits MoM despite coming on the back of the Diwali month.
To summarise, 2020 brought many wonderful changes, among them:
India discovered its sweet tooth in pandemic times. It was the only category that consistently grew past its pre-COVID levels, even during the peak of the lockdown.
Chocolates & confectionery provided comfort in the absence of human connection.
Commodity products (Staples) have undoubtedly been the growth generators in the last quarter of this year. Despite the emphasis on healthful foods, consumers made traditional savories and sweets during the festive season.
Homecare products saw a flurry of new product launches with many companies capitalising on the new demand trend for health & hygiene at home. It was also the most widely distributed category of all.
Personal Care, which is so very dependent on out-of-home consumption, has bounced back to pre-COVID levels despite limited movement of people. 2021 promises to be a fantastic year as things get closer to normalcy.
Many consumer businesses built Direct to Retailer channels to avoid any future supply disruptions. Today, many of these businesses drive over 20% of sales through this channel.
Sub-urban & Rural India has helped consumer businesses with a lion’s share of growth and is finally getting the attention it deserves from consumer companies. Brands are relying on technology to drive outlet expansion across the country.
There are many more Kiranas than before and they’ve increased their average stocking levels to ensure continuous supply of customers’ favorite products.
So for all these wonderful things
Thank you 2020! We’re ready for the future.