Understanding consumer's spending priorities is crucial

None of us had expected the year 2020 to begin with a pandemic that will spin the world on its head. India chose to be under the most extensive lockdown, resulting in total shutdown of manufacturing, travel, retail and other services for days together. As a result, various sectors like liquor manufacturing & retail; hotels, bars and restaurants are in total disarray. The supply chain is badly disrupted and even after lockdown is being lifted after 85 days, it will take a long time to come to pre-COVID 19 status.

Global growth rates have taken a hit. The change in consumer behaviour as they take protective actions Bishan Kumar against the virus is likely to have immense social and economic impact. In this light, there are a number of challenges for alcoholic beverage brands operating in India.

The short-term responses to the crisis taken so far were pragmatic and necessary. Operationally, most brands are dealing with the immediate situation but are we ready for the long-term impact of this crisis?

These are the most challenging times for alcoholic beverage brand owners and marketers. There were signs of a slowdown already and the COVID-19 outbreak has increased the apprehensions in the market. Product launches have been deferred, on ground activations are halted and there is fight to catch the attention of consumers on digital platforms.

Job losses, pay cut and uncertain future are inducing consumers to limit their expenses in these troubled times. They want to buy the right products and services from the brands they trust. The sales figures from different states in India have clearly indicated that overall collections from sales of alcoholic beverages have gone down as compared to the previous year’s figures.

This could be a worrying sign for brand managers too and they will have to re- strategise in the changed situation. The problem is that no one knows how long this downtrend will carry on and when actually the business sentiments will lift up.

But such unprecedented situation has created some new opportunities as well.

Some marketers are seeing it as an extraordinary opportunity for brands to engage more creatively with their consumers. As more and more people around the globe get locked up in their homes, brands have captive audiences glued on to television or mobile screens, consuming a lot of content.

In these uncertain times, alcoholic beverage brands are treading cautiously; looking for the most cost-effective ways to deliver their products and services. It may seem obvious to cut marketing spends, but that is only a short-term solution; pregnant with long-term consequences.

This is the time when alcoholic beverage brands need to stand by their consumers, add value to their lives, and earn their trust more than ever before. Maintaining brand visibility in the market is now more essential than ever. Now gauging consumers’ mood and their current spending priorities is also perhaps more important than ever.