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Restoring Retail – A Smart Way to Increase Retail Sales as Markets Open
by Rituparna Nath
As we reach mid-year, tiptoeing our way while expecting the worst, a new dawn just might set in the context of the Indian CPG market. May 2021 saw sales taking a steep drop by 79% in comparison to pre-COVID-19 levels last year. However, with “unlock-downs” in place, retailers are hopeful of better days ahead.
So the best way forward for FMCG brands to capitalize on this opportunity is by chalking out market expectations.
Here are the general market expectations:
- As per Aditi Nayar of ICRA, the Consumer Price Index-based inflation which rose to an 83-month high, at 6.60% in May, is expected to stay above 5% for the rest of the fiscal year. This comes as an effect of the rising Wholesale Price Index, which reached 12.94% in May owing to the constant rise in the cost of fuel, including petrol, LPG, and high-speed diesel. This means that the cost of essential commodities like eggs and pulses, will not drop anytime soon, ensuring that consumer spending on essentials stays up.
- While many have lost their livelihood during the pandemic, many HENRY’s (High earners, not rich yet) are all set to enter their favorite stores and spend their spare cash. This means that given the fact that consumers found fewer options during the lockdown, they might be willing to explore varieties that can spice up their lives.
- Consumer spending was limited during the lockdown. As local governments lift lockdowns, brands should engage in creative campaigns to encourage consumers to spend more. Smart merchandising with the most appealing and convenient placement of products for consumers could be one such initiative.
- While retailers are eagerly waiting to increase the number of footfalls in their stores, local governments have directed retailers to refrain from announcing sales or bonanzas that might attract crowds. This means that brands need to ensure optimum sales at MRP.
So how can FMCG brands grab the growth opportunity which is paved by such constraints?
Research shows that people are more than eager to visit their favorite stores and start shopping. Consumers prefer the real-time experience with interactions with products, places and people. They like finding many options in one place. But with a gazillion products hitting the shelves, brands need to be able to distinctly showcase their products to boost their revenue.
Hence, the solution lies in smart merchandising. Smart Merchandising, in essence, increases the brand’s visibility into the market and helps marketers stimulate higher sales by optimizing shelf space.
Holistic tools like Bizom’s Smart Merchandising uses insightful data by capturing multiple KPIs in a single transaction. With real-time data tracking using image capturing, brands can create highly functional planograms. In layman’s language, a sales head sitting in Dubai can track if their stocks in Indian retail shops are placed in the best possible way, at any given point in time.
Now, in case you wonder if a small detail like smart merchandising can really help in achieving a humongous increasing sales, the answer is yes! Because a drop can help make an ocean and because people buy what people see.
Smart merchandising can help make retail stores engage more shoppers, and when every potential buyer can easily access your products in the best possible way, that increases the probability of a successful sale. When that same effect happens at scale, revenue will surely increase.
If you’re keen on knowing how different FMCG brands have used Bizom’s Smart Retail Merchandising to boost their retail growth, connect with our team at marketing@mobisy.com to start the conversation.
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