REGIONAL MARKET BRANDS AND THE PROBLEMS THEY FACE
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