E-commerce companies’ sales fell…
E-commerce companies’ sales fell by 60% during Covid-19 / lockdown, These companies are increasing their dependence on grocery stores now.
E-commerce companies are currently facing many problems due to Corona crisis. At the same time, its nearby grocery stores are benefiting. The nearest grocery store is acting as ‘Warriors’ for customers during the lockdown. This is the reason why FMCG companies currently rely not on e-commerce but on grocery stores.
The government plans to set up 20 lakh ‘security stores’ across the country amid the lockdown. The government’s plan is to identify the grocery stores of mohallas and convert them into ‘security stores’. These stores will supply daily items. Every kind of precaution related to cleanliness and community distance will be taken at these shops. The government has approached more than 50 major FMCG companies for security stores.
According to the Assocham and MRRS India reports, the food industry currently has a turnover of Rs 1.25 lakh crore. There are an estimated 1.2 crore small retailers to cater to the needs of customers in every nook and corner of the country. 90% of the retail markets in this are from the unorganized sector.
The biggest problem e-commerce companies have at the moment is of workers. Most workers have returned to their homes during the lockdown due to this, the e-commerce company is unable to meet customer’s demand. On the other hand, these companies are unable to sell non-essential items. The government has imposed a ban on selling non-essential items. Recently e-commerce companies were allowed to sell non-essential items but later the government changed its decision. During the lockdown, the sales of e-commerce companies have fallen drastically. Nearly 60 per cent of their sale has been reduced.
The purchase of groceries at the grocery stores during the lockdown increased by 53 %. There has been a 48 % increase in consumers purchasing grocery items used for cooking at home. At the same time, grocery stores have seen a 39 % increase in grocery shopping.Grocery stores have served as a lifeline for Indian consumers. Currently these stores are very active and are helping to meet the demand of the customers. Especially in the north, east and west markets of India, people are getting more inclined towards grocery stores. Naveen says that even after the lockdown people will continue to trust the grocery stores. However, shopkeepers of grocery stores are facing many challenges.Due to the Covid-19 crisis, the hotel and restaurant industry has been severely affected due to which milk sales are down by 10-12%, Ice cream by 90%, flavored milk and beverages by 80-90%.
The companies are currently working on 25 percent of the workforce.The biggest problem facing them right now is about labor and transport. Despite this, they are doing their best and have not allowed any reduction in the supply chain during lockdown. During the lockdown, the companies are working to increase the production capacity and also the companies are also engaged in the supply of essential commodities for the customers even in lesser workforce. Despite labor shortage and fewer products, efforts are being made by them to ensure smooth supply chain across the country.
