The Covid-19 outbreak requires consumer product companies, that found ways to manage short-term disruptions during the pandemic, to revisit existing business models to maintain relevance and withstand future disruptions, said the latest report by consultancy firm EY India.
According to EY Future Consumer Index (FCI) that tracked what the post-Covid-19 consumer could look like, about 80% consumers will be more cautious about their physical and mental health. While 36% are changing their brand preferences to support local businesses, about 75% consumers will pay more attention to the environmental impact of products they purchase. Amid changing dynamics, about 77% consumers will save more in long term and 35% will consider authenticity as top priority while shopping five years from now.
“Companies need to prune their portfolios, innovate faster and alter communication to cater to changing consumer preferences. There is a need to revise product formulations to include more natural and eco-friendly ingredients by using recyclable, reusable or compostable packaging. However, brands must emphasise on their local presence to capitalise on the growing ‘local for vocal’ trend,” said Pinakiranjan Mishra, sector leader - consumer products and retail, EY India.
With the surge in online shopping amid the pandemic, companies will need to bolster direct-to-consumer offering and partner with online platforms to ensure product availability during uncertain times, the study added. Redesigning workspaces and reinventing talent management strategies such as agile remote working model and upskilling and hiring people with digital acumen will be critical. Companies need to explore M&As and divestitures to optimise portfolio, expand presence and gain additional capabilities quickly, the study added.