How E-commerce Will Boost the FMCG Sector Post COVID-19


COVID-19 has disrupted the functioning of a lot of markets, industries and small businesses.. People were deprived of being essential and non-essential items online, due to closed home delivery options. It has disrupted the normal day working of the economy and brought the market to a standstill. 

Now, this has left a huge impact on the FMCG industry. Truth be told, it will stay here for long duration of time. Some are still managing to stay alive in such a depressed market, while others are finding new ways to overcome the market obstacles. They are trying to do so by reaching out to customers in new ways and continuing trading. We have even seen some businesses getting shut down after suffering huge setbacks. This immense crisis has forced the businesses to innovate or discover new ways to operate in the market. In addition, they need to adopt new measures to exist in the market surpassing all ill side effects.


There are a million concerns a business owner has to deal with in order to stay afloat in the market. Hence, they have to prioritize time and resources over every other concern. They have to make sure the employee does not lose their jobs. In addition, business continues to work and does not have to face a shutdown. There have been certain initiatives from the government to curb the ravaging impact of the virus on the daily life of the people and on the economy as a whole. Certain financial measures and financial supports are initiated to ensure the businesses and individuals continue to function. The government even has to make sure that public safety is in place along with employees not losing their jobs. Also, the businesses stay open and survive the crisis strangling their survival. 

FMCG accounts for a huge income generation and employment generation in a country. The pandemic has halted the growth of FMCG. Even the existing market is getting disrupted due to the virus impact. But the demand for household items and grocery items have increased due to the pandemic. It has led to a shift in the consumption pattern of consumers. The strict lockdown has brought all the economic activity to a standstill. It has impacted the disposable income in the hands of the people. With the extended consumption pattern, it gave rise to the demand among the consumers with no disposable income in hand. Because all the manufacturing units has been closed and were at a standstill. The growth of the FMCG sector has reduced from earlier targets due to the above reasons. People losing their jobs continuously demands increasing simultaneously with decreasing disposable income.

Introduction of E-commerce

E-commerce has a higher contribution to the metro cities and other cities are also adopting modern trade and e-commerce platforms. E-commerce websites have been extensively impacted by the strict lockdown regarding demand and supply of products and commodities. They have resulted in delivery delays or complete cancellation of orders. Not only the economy has been disrupted by the ravaging impact of the pandemic but also several other challenges were faced in this period. Other challenges like prices have been inflating to irrationally high levels, product safety concerns, deceptive and heinous practices. However, there were other concerns and necessity of social distancing, lockdowns and other obstacles on the way. Therefore, buyers got another reason to buy the things of daily needs via e-commerce websites. This gave a rise and further boom to the E-commerce websites.

As the social distancing and the resulting varying shopping behaviour of more customers in avoiding crowding places due to social distancing norms and safety reasons, e-commerce is likely to expand its reach in all classes of people. Online grocery and gourmet foods shopping websites and retailers have been getting increasing traffic on their sites. Since the lockdown, people are getting used to online websites now. Major shopping websites are engaged in the delivery of essential commodities Because people are avoiding spending on non-essential commodities. The exploding demand for essential goods have brought in new industry players, and retail stores launching themselves online with apps. In addition, initiating tie-ups with the logistics company for home deliveries. 

The impact of coronavirus will further bring new policies for online purchases and supply in the picture soon. It has even given a path for the entrance of many small businesses into the market. Even partnership in e-commerce activities by small producers, manufacturers, retailers and consumers have increased. For several FMCG companies, launching online on e-commerce platforms have become important for building networks.  By initiatives like direct home deliveries or store deliveries, customer backhauls and nurturing partnerships with delivery platforms in the tech industry or such applications. E-commerce boosts in enhancing and developing business to customer deliveries. Also, it boosts even business to business delivery when it comes to distributors and retailers directly.


This pandemic will have long-term impacts on the behaviour of the customer as this pandemic has stayed for a long time with us. People have become used to purchasing commodities sitting back at home. This has even brought a sense of comfort for the customers to receive everything in-home deliveries, and not spending time on going out and purchasing in a queue. They now need new strategies and policies to adjust to the current trends.

The same applies to the FMCG companies, they have to adapt to the external environment, the consumption pattern of the customer’s needs to be counted for. FMCG companies need to connect to their customers through online websites. They also need various online platforms to stay in touch and grow in the ‘new normal’. If they want to sustain in the market and get along with the new changes without drowning in the disruption created by the pandemic. Then, the FMCG companies need to uplift their working procedure to take the situation in its advantage.


MGH is one such company that has adjusted to the new Covid-19 norms. They give full assurance of safety to their clients. Their amazing relationship with their clients and consumers have helped them in reaching a leadership position in the industry.

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