FMCG companies faced some disruptions as a result of the pandemic. Many of their companies were forced to shut down, especially restaurants, and their customers had no choice but to prepare and consume their meals at home. Over 1,000 restaurants have closed down in New York City alone. Grocery stores, on the other hand, had a chance to expand via online shopping and delivery services. The pandemic forced FMCG companies to consider new partners and products like Unilever partnered with Oyo to create hygiene kits. All these, in addition to the change in customers' buying patterns, completely different rules and regulations, and the regular disruption in the supply chain, have been a pretty chaotic experience for FMCG. FMCG ecommerce has been of great help to managing FMCG's present chaotic state.
The pandemic has caused people to have no choice but to remain in their homes, and this will lead to the preparation of more meals at home, causing a major change in their usual buying patterns. Grocery sales have been observed in the UK to have increased by a margin of 75 percent. Digital buying is seen to be easier than buying in physical stores. ecommerce has provided the opportunity for FMCG to pivot directly to customer sales and even use headless architecture to assist their wholesalers with their eCommerce websites.
Changing consumption level: sales spiked due to the fear of what happened in the early days of the pandemic. However, prediction is being made by economics, which is a global GDP contraction of 5.2% in 2020. Over some time, the most recent recession developed over 18 months. There has been a massive and swift economic change, but there is still a shaken confidence in the mind of people because they're already anticipating a loss of income.
The difficulty in planning, production, pricing, and volatile commodity prices is due to constant disruptions in supply chains. The FMCG companies, lowa derecho of August 10 thus puts further stress on corn, soybeans, and many other related commodity supplies to more than 30% of the state's crops getting destroyed. There will be a hike in price, and this will lead to reduced production. Buyers should not be disappointed under any circumstances. eCommerce helps to make what is available known to customers before they order, reducing any disappointments.
Purchase patterns shifted in 2018, growing FMCG'S sales by about 20 percent. The online sales increased about seven-folds within a year, even faster than the overall FMCG. Online buying was the preferred move, creating a mission of converting offline brand loyalty into online buying. It has been observed that the majority of retail and business buyers prefer online shopping. eCommerce importance is more pronounced.
Any company running in the United States has the constant troubles of logistics and compliance; there are nothing less than 50 rules and guidelines to be followed. These are rules that guide everything from the driver's operations to the essentiality of the business. eCommerce combined with a 3PL integration takes stress off of these tasks.