Do brands need a fresh approach?

Phrases like ‘high spirits’ and ‘raising the bar’ seem to have lost meaning even as the economy is on the revival mode. Alcobev companies are trying their best to find their feet in the new normal that changes with each passing day. Thanks to the COVID-19 pandemic and the subsequent lockdowns, it seems like even established players in the alco-beverage business in India are busy taking one step forward and two steps backward. This is primarily because of the changing lockdown guidelines being put in place by both the central government and the state government, as these seem to add to the prevailing confusion.

One may recall that social media was flooded with memes when serpantine queues were witnessed outside liquor vends in India, when they opened more than a month ago. The memes talked about how the drinker was contributing to the country’s GDP by buying his favourite dram/s. Humour apart, economists were quick to point out that any global crisis did open up new opportunities for those who were quick to adapt.With the need to think out of the box gaining importance, a term like ‘gig economy’ has gained currency. The thought behind this concept is that in the corporate world it is no more about survival of the fittest but more about survival of the quickest. It implies that that those who are quick off the block are the ones who will
thrive.

With no end in sight of the pandemic-induced crises on all fronts and the Indian economy in a state of disarray, has it forced alcobev companies in India to re-strategise their approach? Perhaps the old rules of the game now need serious tweaking – be it for product release or budget allocation or customer communication or promotion.

Job losses, pay cuts and an uncertain future are also seriously affecting consumers’ buying patterns. What do all these changes mean for liquor companies and brands and what are their preparations to meet the new set of challenges? Are these difficult times offering some opportunities too? For instance, some states have been toying with the idea of doorstep delivery of liquor products. With on-premise trade lying in shambles will the industry be able to bounce back? With reduced disposable incomes, will entry level players find more clients or will the premium segment players manage to retain their hold? We examine such issues in our Cover Story to provide you an in-depth understanding of how key players in India’s alco-beverage business are reinventing themselves to the new realities.