What COVID-19 Impacted on Cleaning Product in FMCG Industry ?
Impact of COVID-19 on Cleaning Product in FMCG Industry INTRODUCTTION The COVID-19 pandemic has influenced the whole planet with its major impacts on the economy and businesses across the globe. The COVID-19 spread worldwide in unprecedented ways due to its high infectious and contagious nature and lack of availability of its vaccine. As a result, the greatest medical challenge in the 21st century is yet to be faced by physicians worldwide. Though the emergence of the virus can be traced back to Asia, many European countries along with the U.S. have been struck massively by the pandemic. The virus has spread across all regions ranging from North America, Europe, Asia-Pacific, Middle East, and Africa up to South America. The COVID-19 has been declared as a pandemic by World Health Organization (WHO) due to its increased spread across the globe. After the declaration of the pandemic, various countries announced the complete lockdown such as India, China, and other Asian countries to decrease its spread. According to the latest situation report by World Health Organization (WHO) stated 175 million cases of the corona have been reported globally and 4 million patients are dead due to the coronavirus. On a slightly positive note, a total of 158 million people have recovered and total of 2 million vaccine doses have been administered as well. The sudden shutdown across the word due to COVID-19 pandemic brought daily life to standstill and disturbed all economic activities. It restricted movement of people, induced labor shortages, impacted factory operations, disrupted logistics, led to outlet closures for non-essential products and food service providers, triggered panic buying among consumers for staples and left retailers with stock-outs in few categories. Cleaning products are comprised with numerous types of materials including liquids, powder, sprays, or granules which are used to remove dirt including dust, stain, bad smells, and clutter on surfaces. The main purpose of cleaning products is to maintain health and beauty, removing offensive smells, and avoiding the spread of contaminants to oneself and others. Many cleaning agents can kill bacteria such as kitchen room, as well as bacteria on worktops and other metallic surfaces and clean at the same time. Cleaning products are normally in the form of acids detergents, abrasives, and sanitizers. And others, called degreasers are cleaning agents containing chemical they are used to dissolve water-insoluble substances (such as grease or oil). In the manufacturing sector of cleaning products, workers have been hit hard in some segments, such as workers are told to stay at home, factories have been closed, and global supply chains grind to a halt. Quarantine measures, closure of retail stores, canceled orders, and salary reductions are suppressing demand and supply of the product such as, personal protection equipment, hand sanitizers and delivery of safe food at home. IMPACT ON PRICE The spread of coronavirus has caused huge shortage of cleaning products and due to this shortage, prices have been highly increased. Increases consumption of packaged, healthier, immunity boosting foods and beverages, and hygiene and cleaning products increase intake of OTC medicines to protect from viruses but on other side factories and all nations have gone shut down. These chaos has have had heavy impact on prices of cleaning products. For instance, The average daily sales and factory output have declined. Only few factories are operational in this time and maximum of those factories are in COVID-19 hotspot regions. Due to this condition the government hasn't permitted the distributors to operate, which thereby make sure the shortage of cleaning products and hence, the increased price. IMPACT ON DEMAND The few months of lockdown changes in consumer behavior are being reflected in sales of product categories. Increased awareness about personal hygiene has led to a jump in demand for hand washes and sanitizers. Emphasis on immunity boosting has led to a surge in demand for healthier foods and preventive products. Some categories like grocery, food and home-essential products, are seeing a surge in consumption. Hence, the demand for cleaning products is on the rise which is further leading to growth of the market. During the pandemic, high importance has been provided to cleanliness so as to avoid the spreading of infection. Cleaning is vital to reduce the impact of virus and thus, the demand of cleaning products has been huge. Due to this consumption of cleaning products have also been high and cleaning products are now out of stock. By this contrast, COVID-19 is having a decidedly different effect on various product categories. In particular, the pandemic is elevating the status of household cleaning products. Cleanliness has always been important, but cleaning products are now part of consumer’s daily life. IMPACT ON SUPPLY CHAIN COVID-19 has adversely affected the supply of inputs for many businesses with lockdown policies affecting the movement of people and business operations. In China, people involuntarily sat idle as a result of COVID-19, which led to a diminishing global pipeline of parts and components exporting around the world. Although no major problems have been observed in the supply chains of consumer goods such as sanitizers so far, it remains unclear in the face of an uncertain future. As a result, each country has to realize the severity of the situation and sometimes should tighten or loosen the measures according to the spread of the pandemic. The supply chain also should be flexible enough to respond to the challenges in the supply chain of cleaning products. UPCOMING FUTURE OF PROTECTIVE FILMS MARKET After COVID-19 people are more aware with cleanliness and changed their life style. Moreover, the technology and innovation are creating new cleaning products that consumers are demanding and cleaning companies can use. Additionally, consumers are increasingly more interested in environmentally friendly products. Technology has influenced how cleaning companies manage their business activities and also how they communicate with their customers. In near future social media and innovation will prove important over the coming years. The government has also encouraging cleanness and manufacturers must keep up a constant advertising effort to promote cleanness image and reinforce market presence. Additionally, companies must be quick to meet changing demand and keep up with shifting trends through product innovation and technological savvy. Extending manufacturing lines to include natural and eco-friendly product and packaging options is one way in which companies may need to evolve. STRATEGIC DECISION FOR CLEANING PRODUCT MARKET AFTER COVID-19 TO GAIN COMPETITIVE MARKET SHARE The spread of coronavirus has caused huge shortage of cleaning products and this shortage has driven price too high. Governments, medical sector staff, workers of other organizations and doctors have been encouraging to use alcohol based hand sanitizers which have had huge impacts on sanitizer market, and have tried their efforts to address and mitigate the challenges of COVID-19 and recover from the economic and social crises. Many country’s government have support packages and while these are not generally specific to the chemical industries. The coronavirus has disrupted almost every industry but governments, medical sectors, workers of other organizations and doctors have encouraged social distancing and due to all these, factories had been shut down and workers were not going to work and have tried their efforts to address and mitigate the challenges of COVID-19 and recover from the economic and social crises. CONCLUSION Pandemic has taken a toll on every aspect of life, including the global economy. With the significant downfalls in many sectors, a collaborative effort of government, industry players, and consumers can win the fight against COVID-19. As official authorities and WHO (World Health Organization) have been encouraging the use of sanitizers, drinking clean water, and hygiene in terms of food we consume and area we live in or washing our hands, the demand for cleaning products has been and will continue to see a significant growth. It still continues to inflict the world with appalling economic and social dilemmas, capable enough to leave severe backlash on the economy for the next several years. The first wave had already inflicted severe blows to the population as well as the economy. The currently experiencing second wave is expected to be more disastrous not only to the masses but also to consumer goods markets. Cleaning products and services are an essential part of preventing and protecting human health during infectious disease outbreaks, including the current COVID-19 pandemic. One of the most cost-effective strategies for increasing pandemic is preparedness, especially in resource-constrained settings, is investing in core public health infrastructure, including water and sanitation systems.