The outbreak of pandemic and the ensuing lockdown across the world have shaken the very foundation of the retail industry. Even post unlocking, brands are feeling the heat, mostly due to altered consumer behaviour.
“Due to the rapid spread of COVID-19, some markets have taken extreme measures to protect their populations by issuing widespread quarantines, halting manufacturing and disrupting supply chains. And even in the markets that haven’t taken such severe measures, demand has been disrupted due to consumer precautions. Globally, there is likely to be an impact on product and brand choices being made at the checkout due to these changes. And this impact may break longtime purchase habits irreversibly,” reads a Nielsen report titled ‘COVID-19 Concerns are a Likely Tipping Point for Local Brand Growth’.
“In recent years, consumers have generally displayed strong preferences for local dairy and fresh produce brands and products versus those coming from further afield. Amidst the ongoing COVID-19 crisis, anxieties around origins of products and ingredients are likely to fuel increased demand for even more local sourcing,” the report further read.
Impact of the Pandemic on Local Brands
While the pandemic has been generally disastrous for the retail industry the world over, it has, surprisingly had a very positive impact on homegrown brands. While the initial months were tough for all, post Unlock 1.0, the demand for homegrown brands has increased significantly in keeping with the Prime Minister’s clarion call of ‘vocal for local’.
Bala Sarda, Founder and CEO, Vahdam Teas said, “Fortunately, COVID-19 has impacted our brand positively. With the increase in online sales and essential groceries, demand has been high. We’re seeing a lot of new consumers who are trying our products. We have been offering a wide range of immunity boosting Turmeric Teas blended with other superfoods like Ashwagandha, Moringa, Ginger etc. They come blended with black pepper which increases the absorption of turmeric in the body.”
Mayank Gupta, Founder & CEO, To Be Honest (TBH), a healthy snacks brand, agrees, saying, “Demand for TBH products increased due to the functional health benefits they offer as compared to other products from competitors. Secondary and tertiary demand from retail stores remained high without any BTL activity, showcasing brand value. We saw a 400 percent increase in revenue from online channels between February to June 2020.”
You can read up to 3 premium stories before you subscribe to Magzter GOLD
Log in, if you are already a subscriber
Get unlimited access to thousands of curated premium stories, newspapers and 5,000+ magazines
READ THE ENTIRE ISSUE