A study of impact of COVID-19 on consumer goods industry in India
Tushar Saneja, Vaishali Dhiman
The effect of COVID-19 on Indian economy is important to be studied so this study is an attempt to know how this health crisis has created an impact on the sector of consumer goods. The impact is studied by determining the fluctuations in the demand and supply of various consumer goods, the initial effect of this pandemic on the prices of essential consumer goods and to anticipate the future spending habits of consumers along with these analyses a picture of comparison of the present buying scenario with the previous one is also given. It was observed that during the lockdown period many fast-moving consumer durables fall short of supply as the demand increased unexpectedly which resulted in price hike whereas slow moving consumer goods that are much costlier experienced nearly zero demand. The major findings of the study are consumers the demand for consumers got really high because of panic buying by consumers and the restrictions in the supply chain made it difficult to maintain the supply and as a result many goods were not available to consumers. Consumers would prefer to save in future instead of spending on non-essential items as the pandemic has made them realize the importance of a contingency fund. The prices of goods increased and the main reason was hoarding by consumers which increased the demand and as a result the price got increased. It can be said that if people bought only required quantity of goods, the price might not increase that much. The sales of goods which had a high demand before pandemic dropped significantly and focus was given on only those goods required to prevent the disease. Those goods are not considered essential by consumers as they can live without those.