As the central and state governments are easing the restrictions and lifting the lockdowns step by step consumer brands have started formulating for the restart of their business operations. With revised guidelines coming regarding the lifting of the lockdown, the central government has given more autonomy to state governments and from June 8 malls, hotels, restaurants, and religious places are allowed to reopen.
Bringing back the customers: A major challenge
One of the big challenges the consumer companies in India are going to face once the restrictions are eased is bringing back the consumers to the stores. After around eight weeks of lockdown consumers spending pattern has changed. Consumer brands like Westlife, Titan, Aditya Birla Fashion, Jubilant Foodworks, Future Lifestyle, PVR, and Inox are going to take on new approaches to bring the consumers back to the stores.
The largest watch band in India Titan is set to launch low price point products that have low input costs as consumers are showing a trend of downgrading in their buying behavior. Tanishq the jewellery brand by Titan has started ‘video assisted’ shopping with video call and virtual display of jewellery by a salesperson.
Following the social distancing norms, Aditya Birla Fashion and Retail is planning to reduce the number of employees in the stores. The company is also preparing to adopt e-commerce channels for their sales. Also, Future Lifestyle launched the ‘Store at your Door’ concept which helps consumers by delivering products to their homes. Multiplexes such as PVR and Inox are formulating to get back into businesses complying with the social distancing norms. Multiplexes association has made recommendations to the government that one empty seat will be left after each customer group. Also, the shows in the multiplexes will be sequenced in such a manner that there is less crowding in the lobbies and restrooms.
‘Zero contact delivery’ and ‘zero contact takeaway’ measures will be adopted by Jubilant Foodworks through Dominos taking care of the hygiene concerns by the consumers. The company has also made a tie-up with ITC to deliver spices and atta along with pizza. Also, consumer companies might launch promotions in order to reduce inventory.
These innovative measures by consumer companies may modify the current business model. CLSA, a foreign brokerage, said in a research, “Some of these measures are also likely to permanently alter the business models of companies.”