Epidemic Shopping: Nestl,, Unilever and Procter & Gamble Race to Adapt

Epidemic Shopping: Nestl,, Unilever and Procter & Gamble Race to Adapt

“We need to be closer to our customers and their habits, needs and aspirations now than ever before,” John Moeller, the company’s chief financial officer, said during an earnings call last month.

Preliminary evidence suggests accelerating the shift to online shopping, as consumers are buying more products for their health and home, and they are becoming increasingly aware when choosing more savings.

In a call with analysts last month, Nestle (NSRGY) CEO Mark Snyder said the company is working “overtime” to understand what the economic crisis is for each of its product divisions. Nestle is the world’s largest food and beverage company, with everything from breakfast cereals like Cherios to Maggi instant noodles, Hagen-Dodge ice cream, Nescafe coffee and San Pellegrino water.

“To me it’s a very interesting job because obviously it can’t be a quick recovery,” Snyder said. .. / src / NamedConfOptions.py: 209 msgid “” “If this is not a process of a few years, it is going to be a quarter,”

In an environment where almost everything changes overnight, consumer product companies are temporarily dependent on lockdowns or any new purchases ending with the arrival of a vaccine and it will be prolonged, the way they spend money over the years should be restructured.

“We’re evaluating the market through the market to see if we need to change our core products, prices and pack sizes,” said Hanek Faber, president of Food Graduation and Refreshments. Unilever (Wool), Which makes Lipton Tea, Dove Soap, Hellman’s mayonnaise and Ben & Jerry’s ice cream.

There is no “playbook” for this recession, he told CNN Business. “It must be extremely clever and flexible for our near future.”

E-everything

Although much is still unknown, it is clear that some lifestyle changes and changes in the land of spending have transcended social distance systems. For example, some customers have chosen Shopping online Because physical stores were closed or to avoid crowds, and now that they’ve jumped, they probably can’t go back to their old ways.
“Early lessons from China suggest that three to six percent of the online market share is” glue “, comfortable with the new digital channels driven by the older generation and driven by the new consumer segment,” wrote partners at consulting firm McKinsey. Research paper.

Their study found that the three largest UK grocers added more than 500,000 new delivery slots in the space of a few weeks, an increase of more than 30%.

With so many customers at home, Nestl দেখে has seen an increase in demand for Nescafe coffee during the epidemic.

In the first three months of the year, Nestl’s e-commerce sales grew 30% worldwide, while online sales grew 35% over the same period, according to Procter & Gamble.

The coronavirus crisis could probably be a “landmark event” Online sales People related to food and beverages, who have never bought groceries online before, discover how convenient it is, says Snyder, CEO of Nestle.

E-commerce is unlikely to be at a very high level right now, but “we’ve reached a much better plateau than this,” said Jack Jack Neal, director of portfolio at Dutch financial services firm Roebuck.

Health and Hygiene

Like online shopping, health and wellness was a growing lifestyle trend before the coronavirus hit and it only gained momentum during the epidemic. Consumers are wiping the surface and washing their hands more than before, while selling orange juice, it is considered to be beneficial for health because it contains high amounts of vitamin C. Increases.

Alan Jopp, CEO of Unilever, told analysts last month, “We are confident enough that sustainable energy can be enjoyed anywhere in health and wellness.”

Faber said Unilever has seen sales of products such as Lipton Immune Support, as well as high-zinc and vitamin-C beverages. He is moving fast to roll these out globally, and the product will remain a health priority for innovation, he added.

“We’ll probably serve services that will become the focus of changed health, hygiene and cleanliness,” said Proctor and Gambler Moller, adding that U.S. customers are washing their clothes more frequently, adding more laundry loads each month.

Procter & amp; Gambling has noted an increase in the number of weekly laundry burdens in the United States.

Building a house

Even when the lockdowns are lifted and restaurants, bars and movies reopen, there is an idea that people will not rush to get out again.

“The home may have an extra focus: more time at home, more food at home, more cleaning at home,” Moeller said.

With this unemployment The sky is high, Many customers will have small budgets for leisure. They may decide to save even more money for the bad weather. Recent data from the Bank of England and the European Central Bank show that household savings rates rose in March in some of Europe’s largest economies. Rates were similar in the United States, where savings rates have slipped. The highest level Since 1981.

Others who have spent time and money improving homes and gardens, or have new hobbies, are more likely to be among them.

Streaming and Pave TV: Bad economic times can make the fight for the box harder

“Staying inside is the beginning of a new beginning,” McKinsey’s report said. “Once the restrictions are lifted, we hope customers will spend more time sitting at home, saving money, enduring security concerns and finding newfound joy in building a home.”

Increase sales of online bread machines United States According to data compiled by retail technology company Stackline, March was second only to disposable gloves in comparison to a year ago. Weight training equipment (+ 307%), craft kits and projects (+ 117%) and table tennis tables (+ 89%) reflect online sales that many customers are looking for new ways to entertain themselves while sitting at home.

As an indication of this trend, Nestl ইউ USA last week launched a new range of health conscious ready meals. Unilever executives have described the Faber trend as “coquing”.

Unilever estimates that 15% of restaurants that went bankrupt in China during the crisis will never open again. While restaurant and bar owners say their business model and social distance rules remain in place, it is likely to be repeated elsewhere. Do not work simply Without volume and traffic.

Value and faith

The Coronavirus depression It is projected to be the worst in several decades, meaning businesses and customers will be in cash for the foreseeable future.

Even in rich countries, pricing and austerity will be increasingly important, says Unilever’s Jop. He pointed to products that could be supplied at “incredibly low prices” as “huge power” in countries like India.

“In Europe, we as an economy can rely on negative price pressures step by step … go to the doldrums,” he said.

It's not just Amazon: Why the epidemic will make Aldi and Dollar General more influential

In the same vein, Proctor and Gamble said it is in a better position to weather the economic downturn because its portfolio focuses on everyday use items. “We have never seen the level of unemployment we want to see in this country [the United States] And potential among others, and we don’t know how long it will last, ”Moeller said.

Customers already have signs of that Trading downIn favor of cheap personal label products for the convenience of retailers of choice More info (Expenses), Of information (WBA) And Biography (Biography). Sale Discount shop, E.g. Dollar General (DG) And Aldi, enjoying a lift.

However, at least for the time being Nestl,, Unilever and Procter & Gamble are confident that customers will balance prices rather than prices, with established brands they are less familiar with and choose.

“People will go back to big, trusted brands,” said Faber of Unilever. “They’re not sure it’s easier to spend money on products.”

Leave a Reply

Your email address will not be published. Required fields are marked *