I have the privilege to attend a webinar on 15th April, Wednesday Navigating Recovery Post COVID-19 for Consumer Food Brands organized by Ankur Capital.
The panel had good expertise in FMCG and the food industry. They shared a more comprehensive range of challenges and issues faced by the consumer food brands amid lock-down. I will summarize the webinar in six points:
1. Managing human resources: The legal aspects of managing human movement was relatively easy for the firms. But, a lot of personal communication was established by the leadership team to establish trust between them and employees. There were a lot of queries on the risk involved as the mainstream media has heightened a sense of panic and anxiety. Communication with the employees and all key stakeholders is the key!
The panel had good expertise in FMCG and the food industry. They shared a more comprehensive range of challenges and issues faced by the consumer food brands amid lock-down. I will summarize the webinar in six points:
1. Managing human resources: The legal aspects of managing human movement was relatively easy for the firms. But, a lot of personal communication was established by the leadership team to establish trust between them and employees. There were a lot of queries on the risk involved as the mainstream media has heightened a sense of panic and anxiety. Communication with the employees and all key stakeholders is the key!
2. Organization culture: While business metrics are important, companies should adopt a people-first approach and ensure that the well-being of their employees and customers is the key. The whole culture has been put to the litmus test and the lock-down has put the values of the companies in the action.
3. Alternate partnerships: Companies have ensured seamless supply through partnering with new partners and tackling logistics issues. Companies have re-prioritized the channel distribution strategies by considering the willingness, infrastructure, and payments of the partners. The situation is different for each partner.
4. Embracing technologies solution: Leadership has been pushing for technology like Microsoft Team and Zoom to the reluctant adopters.
5. Financial Liquidity: Startups have negotiated cash discounts to distributors. The Cash crunch has led to the cutting cost and made them functional for 2-3 months. There will be changes in the product portfolio, and processes to make companies more efficient.
6. Ecosystem Recovery: The recovery curve will be U shaped rather than V-shaped in consumer food brands. The behavioral habit of the consumer such as out-of-home shopping, and dining will change as people venture out less often. There will be trust building by brands through reassurance, hygiene, quality, and the process they follow at the back end. Unknown brands will be either buried or raised from the debris. The online groceries ecosystem will change and rapidly evolve in the next 6 months. A lot of medium food brands will change the rules of engagement in the online space.
Covid is a moment of truth and companies are looking to emerge from this stronger. Brands should focus their efforts on building trust and ensuring that the values that the organization stands for come to the forefront during times like these.
