India is witnessing a V-shaped recovery, coming back from a 23.9 percent contraction in GDP in Q1 and a 7.5 percent decline in Q2, to neutral-to-positive growth in Q3. It is showing a strong recovery across almost every key economic indicator. As a result of the rebound, India is expected to be one of the fastest-growing economies in the next two years.

Unlike previous economic crises, COVID-19 had affected both demand and supply and led to a complete shutdown for 2-3 months. The unprecedented nature of shock, the prolonged unplanned lockdowns, the associated uncertainty about the length and severity of the pandemic, and the increased spending on essential items (such as food and other non-durable consumer products) as families hoarded these in the early stages, caused imbalance across the entire value chain. The situation was especially bad for some sectors, such as offline non-essential retail, hospitality, food services, and travel, which completely shut down for many months. In response to this, the government announced various structural reforms to support production and accelerate demand, and various fiscal measures to try and boost the economic recovery.

Our point of view titled “KNOW your consumer” is an attempt to relook at today’s consumers, channels, and global markets, and provide an updated perspective for retailers to help them strategise in the new normal.

COVID-19 changed consumer behaviour overnight as health and safety concerns suddenly became a purchase driver. The industry witnessed technological adaption in a matter of months that would usually have taken years to occur.

Trends fuelling the evolution of the retail and consumer products industry

Source: Trends that are fueling the evolution of the retail and consumer products industry, Deloitte

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