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Regional brands are finding it difficult to cope up with the ever-changing

demands of the Covid-19 pandemic. This has led to them losing their market

share and volumes between 5% and 20% over the last four months. The tables

have turned on the smaller brands as their market share was growing in the

first few months of the pandemic with consumers choosing availability on

shelves over loyalty.

As the duration of the lockdown kept increasing many

complications arose such as supply changes and distribution systems breaking

down. Also, once the products from trusted brands started rolling in customers

started choosing those over concerns of trust. The categories most impacted

are soft drinks, biscuits, snacks, tea and edible oils.

Regional brands were enjoying an increased market share over the last five

years. Their market was slowly changing with e-commerce and the ability of

smaller companies to take higher risks led to the growth of regional brands and

they were becoming a force to counter the dominance of the big brands. This

pandemic has not only led to stunted growth but can also lead them to lose

hordes of consumers.

However, many executives of regional companies believe that this will be a temporary setback and their numbers will reach pre- COVID levels within a few quarters. Still, many experts believe that the pace of consumer shift to the trusted brands will accelerate for now. Simply put the companies with deep pockets and broader retail outreach have been able to

weather the storm.

Reporter: Rishit Roy

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