MINI PROJECT-2

Emerging Trends in FMCG Industry

Submitted for the Partial Fulfillment towards the awards of the Degree in

Master in Business Administration (MBA)

of

Dr. A.P.J. Abdul Kalam Technical University, Lucknow

By
SPARSH SHARMA

22019207000376

Under the guidance of

Ms. Dipti Singh

Assistant Professor

at

GL Bajaj College of Technology and Management

Greater Noida
August, 2023
 G. L. BAJAJ
INSTITUTE OF TECHNOLOGY & MANAGEMENT
Approved by A.I.C.T.E. & affiliated to Dr. A.P.J. Abdul Kalam Technical University

Date:

CERTIFICATE

This is to certify thatSPARSH SHARMAhas undertaken this Mini Project-1 titled“Emerging

Trends in FMCG Industry” for the partial fulfillment of the award of Master of Business

Administration degree from Dr. A P J Abdul Kalam Technical University, Lucknow (U.P.), India.

I wish him all the best for his bright future ahead.

Ms. Dipti Singh

Project Supervisor
Department of Management Studies

Dr. Vikas Tripathi

Head of Department
Department of Management Studies

ACKNOWLEDGEMENT
This project is the outcome of sincere efforts, hard work and constant guidance of not only me but a
number of individuals. First and foremost, I would like to thank GL BAJAJ INSTITUTE OF
TECHNOLOGY AND MANAGEMENT, GREATER NOIDA. I am thankful to my faculty guide Ms.
DiptiSinghfor providing me help and support throughout the Mini Project
Report period. I owe a debt of gratitude to my faculty guide who not only gave me valuable inputs about
the industry but was a continuous source of inspiration during these months, without whom this Project
was never such a great success. Last but not the least I would like to thank all my Faculty members, friends
and family members who have helped me directly or indirectly in the completion of the project.

SPRASH SHARMA

ROLL NO – 2201920700376
 STUDENT DECLERATION

I, SPARSH SHARMA, bearing University Roll No 2201920700376 of AKTU

UNIVERSITY, LUCKNOW, enrolled as student of MBA-1st year at GL BAJAJ
INSTITUTE OF TECHNOLOGY AND MANAGEMENT, Greater Noida, solemnly
declare that the mini-project titled, “Emerging Trends in FMCG Industry” embodies the
results of original Project work carried out by me and the same has not been submitted in
any form partially or fully for award of degree of this or any other University/Institute.

SPARSH SHARMA
Roll No- 22019207000376
 PREFACE

The FMCG products are sold in offline stores as well as online store. The opportunity to acquire many
customers lies in online mode. Our research and its findings can help marketers and companies in
understanding the potential of e-commerce sites with regards to FMCG products. Since the internet users
in India are soaring and touching the million active users, a large portion of customers are unacquired in
online mode. Just by tackling the basic challenges of user-friendly sites can, eventually, prove to be a core
competency. FMCG products, if not purchased, are consumed by every age and gender. To leverage
technology for sale of FMCG products is crucial along with the factors that affect such online buying
decisions.
The success of every business is portrayed through its market condition. The Performance of the
company‘s products in the market displays the present as company as future of the concern. Every
organization has the primary objective of occupying a place in the market and reserves its major portion
and finally keeps on expanding it to become the market leader.
Thus it‘s very important for the company to keep on reviewing its market condition and keeping a check
on the competitors so that it may offer better, economical and quality products and services to its valuable
customers.

Although the customer oriented firms seek to know the buying behavior of the customer, its main goal is to
aware customer about the product, first the company create new customers by lowering its prices, but
results may be lower profits so secondly the company might be able to increase prices. Third the company
has many stake-holders including employees, dealers, suppliers and stock holders spending more to
increase customer awareness might divert funds from increasing the satisfaction of other partner. Estimate
the company must operate on the philosophy that it is trying to deliver a high level of satisfaction to the
other stake-holder within the constraints of its resources. From the past studies of last three decades we
observed that the company‘s first task is to create and aware customers. But today‘s customers face a vast
array of product and brand choice, prices and suppliers.

Executive Summary
This project under the title of ―Identify factors influencing the online buying behaviour of the consumer
of
FMCG Industry with special reference to New Normal‖. I have enlisted the brief information about the
Global
Pandemic COVID-19, FMCG Industries and its products, Online Shopping, E-Commerce in India,
Advantages of E-Commerce, Online shopping in India, Top online FMCGs shopping sites, factors
affecting online FMCGs shopping. I have enumerated about the objective of the project and the conditions
in which it was performed. The modus of operation is also well listed in the project about how I have
gained the information regarding the project to fulfill the objective of questionnaire given and the project. I
have listed the research methodology and the information received during that has been analyzed at its best
to give proper data. Accordingly, I have given my suggestions in favour of the online shopping sites to
help them analyze and interpret actions to increase their market share by knowing the influencing factors
of consumer‘s towards FMCGs. I have enlisted some limitations in this project which I had to follow
during the term of the project and the data given along with the results are favourable in those
circumstances.
TABLE OF CONTENT
S. NO. INDEX PAGE NO.
1 Title page 1
2 Acknowledgement 2

3 Declaration 3
4 Preface 4
5 Executive summary 5
6 Table of content 6
7 Abstract 7
8 Introduction 08-18
09 Literature Review 19-20
10 Research methodology 21-23
11 Data analysis and interpretation 24-34
12 Findings 35
13 Limitations & scope for future research 36
14 Conclusion & recommendations 37-38
15 References & Bibliography 39-41
16 Annexures 42-48
ABSTRACT

The present paper focused on the understanding of an Identify factors influencing the online buying
behaviour of the consumer of FMCG Industry with special reference to New Normal. A critical situation
pushes human behaviour towards different directions with some aspects of behaviour being irrevocable.
COVID-19 pandemic is not a normal crisis, and to control the spread of disease various measures were
taken including complete and then partial lockdown. Since all elements of the economy are intricately
interrelated with public health measures and lockdown, this resulted in economic instabilities of the
nation‘s hinting towards change in market dynamics. In every market, consumers are the drivers of the
market competitiveness, growth and economic integration. With economic instability, consumers are also
experiencing a transformation in behaviour, though how much of transformation experienced during the
crisis will sustain is a question. This study looks at the consumer behaviour during COVID-19 crisis and
in the subsequent lockdown period when the world stood still for more than a quarter of a year. Further,
the article attempts to weave through the maze of literature available about consumer behaviour in normal
times and in crisis times, strengthens it with the rapid assessment reports culled out by the different
consumers during complete and partial lockdown phase to bring up a hypothesis of the pandemic
affecting a paradigm shift from consumer materialism to consumer spiritualism. The proposition offers
further testable hypothesis for future research to understand consumer sentiments or requirement in
buying ‗what is enough‘ within the marketing context and how it can be reinforced post-COVID crisis
for ensuring sustainability of business models. It would also be interesting to explore the correlates of this
forced consumer behaviour with other variables such as learning from crisis, changing needs, personality,
nationality, culture, new market segment and age to develop new models of consumer behaviour.
INTRODUCTION

It started in late 2019 with reports of a new virus in China. The Chinese authorities informed
the World
Health Organization (WHO) about several cases of a mysterious lung disease in Wuhan, the
capital of central China's Hubei province. Although amongst the last few countries globally to
have been infected by corona virus (COVID-19), the Indian government‘s announcement on 24
March to lockdown 1.3 billion Indians in the second-most populous country globally for a
period of 21 days initially, and then extended by an additional 15 days, has led to the shutdown
of factories, crippled the supply chain and made around 278 million sq. m of retail space
redundant. The WHO categorized this new disease as the corona virus disease (COVID-19),
which comes along with a virus, the severe acute respiratory syndrome corona virus 2
(SARSCoV-2) (World Health Organization, 2020a). As the COVID-19 cases increased 13-fold
outside

China within two weeks, the WHO announced on March 11, 2020, ―COVID-19 can be
characterized as a pandemic‖ (World Health Organization, 2020b). The world has overcome
similar events, where diseases were jumping from animals to people. Nevertheless, this time
the conditions are different, as humans are spreading the disease more easily among
themselves, in addition, people are more closely connected with each other than before and
thereby the virus is moving way faster around the globe.

This comes on the back of the worst economic slowdown in a decade that the government was
trying to revive prior to the COVID-19 outbreak.

Infectious diseases have been particularly challenging in recent decades, particularly since the
beginning of 2020 with the outbreak of the COVID-19 (Corona virus Disease-2019) pandemic.
Many believe that this pandemic has caused the gravest of problems in public health, economic
and financial security, quality of life, and food security around the world as compared to
previous pandemics. Many industries have been affected, with the activities of service and
manufacturing sectors being suspended to the point of bankruptcy. Numerous governments
have created quarantine conditions to limit the spread of COVID-19, urging people to stay at
home and leave their home only to meet basic needs such as purchasing food, medical
emergencies, and to work (should smart-working not be possible).
This pandemic is causing economic and social impacts that are more extensive than other major
epidemics of the past two decades, including the 2002–2003 SARS (Severe Acute Respiratory
Syndrome) epidemic; the 2003 North American BSE (Bovine Spongiform Encephalopathy)
crisis; the 2003–2004 H5N1 avian influenza epidemic; and financial crises such as that in Asia
in 1997, the turmoil following the 9/11 attacks in 2001, and the 2007–2009 global financial
crisis. Indeed, according to the International Monetary Fund, the current pandemic is the worst
economic and financial crisis since the Great Recession of 1929. A 4.9% reduction in world
GDP has been estimated for 2020 compared to 2019; of the most important economies
suffering losses are the European Union (−10.2%, with peaks for Italy and Spain, both −12.8%,
and

France, −12.5%), the United Kingdom (−10.2%), Canada (−8.4%), and the United States
(−8.0%). It has wreaked havoc on entire economic sectors due to the forced closure of
economic and commercial activities. Many economists believe that the pandemic will shock the
supply and demand sides of consumer demand. The former includes disruption to the delivery
of products and services, whilst the latter regards the volume of consumption and purchases of
products. COVID-19 impedes normal food supply chain (FSC) functions. A complex FSC
consists of farmers, processing plants, logistics, wholesalers, and retailers. During the ongoing
COVID-19 pandemic, breakdowns or bottlenecks in any part of the FSC have affected other
components up and down the chain. The results of recent analyses have revealed that the shock
in the labour supply has experienced the greatest decrease, thereby causing disruption in the
supply chain and the dumping or wasting of foodstuffs on farms. This disruption is due to the
non-harvesting of crops, an accumulation of products on farms, and disruption to the
distribution network. As a result of this FSC disruption (a lack of workforce in packing and
distributing products to retailers), the shelves in grocery stores (supermarkets) have on occasion
been empty, which has furthermore been due to hoarding and panic buying that, in turn, has led
to the shortage of basic foodstuffs. In order to prevent such a shortage, many governments have
restricted the sale and export of food and increased the import of basic products. The shortage
of supply in retail stores and rising household demand has markedly impacted the price
volatility of agricultural products. In the meantime, a huge demand shock in the hotel,
restaurant, and catering (Ho.Re.Ca.) sector has been recorded, thereby exerting a major impact
on the food system. The current pandemic expansion has and will continue to have an
unprecedented negative impact on the present and future livelihoods of households and
businesses

CONSUMER BEHAVIOUR
According to the definition by Engel et al., consumer behavior, as a purchasing decision
process, is a mental process that is experienced prior to and after purchase. Consumer
behaviour is very complex, involving a wide range of behaviors from consumption to disposal.
Several factors, including economic, regional diversity, socio-demographic, as well as
consumer preferences and attitudes, all affect food consumption. Furthermore, a limited
household income affects food selection and demand. Empirical evidence has demonstrated
that dietary habits are modified under the influence of stress. Other research has revealed that,
in non-pandemic times, quality, taste, freshness, price, nutritional value, the production method
of foodstuffs, etc. affect the behavior and preference of food choices; in times of crisis, the
relative weight of these factors can vary . Moreover, according to the theories relating to the
life cycle and permanent income, current expenditure is affected by expected revenues in the
future. This also depends on whether the individual is currently optimistic or pessimistic about
the future. Consequently, being less optimistic about the future, people will tend to spend less
and save more in the present. In this regard, the results of an empirical study in Japan revealed
that pandemics had a major impact on low-income workers, negatively affecting women more
than men. Many scholars hold that there will be even more significant changes in consumer
behavior in the aftermath of the pandemic. These conditions will, therefore, lead to changes in
lifestyle, behavior, and eating habits in the long term also. Currently, there are countries that
have managed to markedly reduce the transmission of the COVID-19 disease, as well as
countries experiencing an early expansive phase. The aim of this paper is to highlight the
effects of the NEW CONSUMER'S ONLINE

BEHAVIOUR PARADIGM AMIDST COVID-19 WITH SPECIAL REFERENCE TO FMCG

INDUSTRY''
FMCG INDUSTRY
Fast Moving Consumer Goods industries selling necessity-driven and essential products, such
as fresh food, packaged food and bottled water, are being impacted due to supply chain
breakdowns, stockpiling and stockouts. The COVID-19 pandemic has resulted in a slight shift
in the paradigm of what we consider to be essentials; hygiene products have entered this
category, whereas industries like apparel have shifted to discretionary.

Discretionary products more generally have taken a backseat. Travel, consumer foodservice,
luxury, apparel and footwear, consumer electronics, alcoholic drinks and tobacco have been
severely impacted, as most companies have halted or scaled down their operations during the
lockdown. However, some companies have transformed their facilities to produce products like
masks, hand sanitisers, ventilators, etc, that aid the government and community in fighting the
pandemic.

Our on-ground team of analysts in India tracking these industries has summarised the impact of
COVID-19 on India‘s top FMCG industries and services.

Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that
are quickly sold at a lower cost. Although the profitability of FMCG products is relatively
small, they are usually sold in large quantities; therefore, the accumulated profits of these
products may be large.India's FMCG industry is the fourth largest sector in the economy and is
expected to have a scale of Rs 1,300 crore. In the past ten years, the annual growth rate of the
industry is about 11% (Ideas make market). The important components of the market include
the sale of unbranded products and unpackaged products.Key Segments of the FMCG Industry
are household Care, personal Care, food and Beverages. According to Indian FMCG Industry
Report; From 2016 to 2020, India's fast-moving consumer goods market is expected to grow at
a Compounded annual growth rate of 21% (Indian brand equity foundation).It is expected that
by 2020, the popularity of modern retail will increase significantly.The main drivers identified
through historical trends are mainly awareness raising and making it easier to acquire and
change lifestyles.Family and personal care accounted for 50% of the market, hair care
accounted for 23%, and food & beverage accounted for 19% (Economic Times).With the
increasing popularity of sales technology and the increase in wastage rates, FMCG distribution
systems have become more transparent, structured, and easily compatible. Rural market
consumption patterns have

Marketing is the art that persuades customer satisfaction which is transformed into customer
delight. The traditional way of buying offline is replaced by online buying. Consumer
behaviour is the study of consumers and the processes they use to choose, use and dispose of
products and services, including consumer's emotional, mental and behavioural responses.
Consumer Behaviour is a field of study which grows rapidly. It is a wider concept that studies
the reasons for the consumer in selecting the product which satisfies their need or want. The
American Marketing Association defines Consumer Behaviour as " The dynamic interaction of
effect and cognition, behaviour, and the environment by which human beings conduct the
exchange aspects
of their lives‖.
The fast-moving consumer goods are the 4th largest sector of the Indian economy. The income
of the consumer is increasing, which results in growth in this sector. Foreign investment is
growing due to the support of the government. Three main segments of FMCG are :

(i) Food and beverages: (include 19% of the sector) Fruits, vegetables, dairy items,
chocolate etc.
(ii) Healthcare: (it includes 31% of the sector) Health and OTC products.
(iii) Household and Personal Care (it includes hair care, health and hygiene products,
skincare, household cleaners. According to Nielson Company, online FMCG buying
is double in next 5 years, thrice is developing nations as compared to developed
nations. Asia region has the potential to grow 5 times.Fast moving consumer goods
(FMCG) is the fourth largest sector in the Indian economy. There are three main
segments in the sector food and beverages, which accounts for 19% of the sector;
healthcare, which accounts for 31% of the share; and household and personal care,
which accounts for the remaining 50% share.
According to Nielsen, the Indian FMCG industry grew 9.4% in the January-March quarter of
2021, supported by consumption-led growth and value expansion from higher product prices,
particularly for staples. The rural market registered an increase of 14.6% in the same quarter and
metro markets recorded positive growth after two quarters. E-commerce is likely to contribute
5% or US$ 4 billion to FMCG sales by 2022
Indian online grocery market is estimated to exceed sales of about Rs. 22,500 crores (US$ 3.19
billion) in 2020, a significant jump of 76% over the previous year. The gross merchandise value
(GMV) of the online grocery segment in India is expected to increase 18 times over the next five
years to reach US$ 37 billion by FY25. Many FMCG brands partner with e-commerce platforms
such as Grofers, Flipkart Supermart, Amazon
Pantry, JioMart, Spencer‘s, PayTM, ZopNow and Big Basket to deliver products at the doorstep
of consumers during the COVID-19 pandemic. FMCG companies are looking to invest in
energy efficient plants to benefit the society and lower cost in the long term. Dabur India has
grown its rural network to over 52,000 villages in March 2020, from 44,000 villages in March
2019. For 2020-21, the company aims to have up to 60,000 villages. The sector witnessed
healthy FDI inflows of US$ 17.8 billion from April 2000 to September 2020. In January 2021,
Udaan raised US$ 280 million (~Rs. 2,048 crore) in funding from existing and new investors,
including Light speed Venture Partners and Tencent. With the latest infusion of capital, Udaan
has earned a total of US$ 1.15 billion to date. Although the company did not reveal the valuation
information, sources stated that the valuation exceeded US$ 3 billion after this deal.
Global Pandemic COVID-19, Growing awareness, easier access, and changing lifestyle are the
key growth drivers for the consumer market. The focus on agriculture, MSMEs, education,
healthcare, infrastructure and tax rebate under Union Budget 2019-20 was expected to directly
impact the FMCG sector. Initiatives undertaken to increase the disposable income in the hands
of common man, especially from rural areas, will be beneficial for the sector.

Awareness among customer related to product specification results in growth in this sector.
Ayurveda Patanjali is becoming an emerging brand among FMCG brand in India. Indian
market is divided into 2 categories:

Urban and Rural.

Urban market constitutes around 60% of the total market, while Indian rural or semi-urban
includes around 40% of consumption. Rural consumption is increasing due to the rise in
income and lifestyle. Dabur and HUL are the top FMCG brands for packaged goods
domestically in rural areas. Businesses should make strategies like researching online and
purchase online. With the help of the internet, it becomes easy for the customer to research a
product online and purchase online according to ibef.org. Promotions and offers should be used
to attract loyal customers, a company like Dabur offers 4 soap cases at a discounted price. New
product launches help the company to grow or expand their business. A company like Britannia
launches 50 new products at the end of 2018. Expansion is the key to grow further. Dabur
invests around Rs 250-300 crore for expansion and acquisition. Green initiatives are used by
good companies for the social benefit of society in future or long term. For eg: HUL reduced
80% of its carbon footprints in manufacturing in the year 2017-18.

Smart phones help to grow business online. According to Nielsen's, 67% of the population has
a smart phone. Many emerging markets have ease of doing business, E-Commerce as well as
brick and motor. The huge opportunity of FMCG sector to sale their product online. According
to ibef.org, 40% of FMCG sales come online by 2020. There are some factors which are
influencing consumer buying behavior online are: I. Price

II. Quality
III. Product availability
IV. Offers and discounts
V. Return policy Marketers should rethink their strategy to attract a new large number of
customers and offers more benefits like discounts, offers to exist customer.
E-commerce
E-commerce or electronic commerce is a term that refers to any type of commercial
transaction that transfers information over the Internet. It covers a range of different types of
businesses, from consumer based retail websites to auction or music sites, to commercial
exchanges that trade goods and services between companies. It is currently one of the most
important aspects of the Internet. Internet was founded in 1991 and the most attractive way to
shop online is ecommerce. 2007 was seen as a breakthrough year for e-commerce because they
contributed very less of total sales. Consumers prefer ecommerce because it has various
advantages over brick and mortar stores. Through e-commerce, consumers have a variety of
products and they can choose the product that best suits them. Consumers can compare the
prices of various commodities and choose to offer them at a reasonable price. It is expected that
the ongoing digital transformation in the country will increase the total number of Internet users
in India from

373 million in 2016 (28% of the population) to 829 million in 2021 (59% of the total
population), and network equipment should reach 2021. The market share will increase from
1.4 billion in 2016 to 2 billion (Indian Express). India's e-commerce market size India's e-
commerce market is divided into two parts.70% of the shares occupied by travel agencies
and30% captured by fashion, furniture, grocery stores etc. The Internet industry in India may
double, reaching 225 billion U.S. dollars by 2020, accounting for 7.5% of gross domestic
product (GDP), mobile internet users reaching 650 million U.S. dollars, and broadband Internet
users reaching 550 million U.S. dollars. Of the total sales, approximately 70% of car sales are
US$40 billion, which is expected to be digitized by 2020 (Indian brand equity foundation).
Experiences of an Economic Crisis:
An economic crisis affects consumers psychologically and financially, being one of the factors
driving changes in consumer behavior. It may, therefore, weaken public and individual
attention on environmental and sustainability issues. In the economic crises of recent years,
many consumers have made fewer purchases due to feelings of insecurity, fear of reduced job
opportunities, and reduced economic activity, leading to empty shopping centers and
restaurants. According to Ba¸sev, many people started to eat in rather than dining out during the
2007–2009 economic crisis, switching from more expensive to cheaper foodstuffs. Moreover,
his results demonstrated that, in some cases, there was a marked degree of resistance to
modifying purchasing habits. During an economic crisis, such as the 2008 Greek government
debt crisis and the subsequent economic recession, consumers were more inclined to eat snacks
and fast food; however, price preference

was also important and it negatively influenced more expensive fast food. It has been
established that consumers‘ income is the most important factor in determining consumption
behaviour. In the case of the 2008 Greek crisis, the quality of the food did not affect the change
in consumer behaviour, but the price paid did influence consumer behaviour. The same can also
be said regarding the impact of the 2008–2014 economic crisis in Spain— consumer behaviour
and daily shopping habits shifted so much that consumers paid more attention to price and
barely considered the quality of products. In such circumstances, some changes are temporary
and some are more long-term. As documented by the results of BejarAgrela et al., it was
revealed that some Spanish people were wary of exhausting their food supplies due to its
scarcity, as occurred in the 1936–1939 civil war, and this effect of the habit of consuming food
in crises has lingered to modern times. Similarly, Ba¸sev contends that the daily shopping
habits of many British shoppers have not been completely abandoned, although the 2007–2009
global financial crisis modified their purchasing and spending habits. For example, the
purchasing of red meat and chicken did not decrease, nor were retail fast foods Sustainability
2020, 12, 8366 4 of 26 preferred to outdoor restaurants. Consumers did not switch their loyalty
to their favorite retailers but expressed their preference for low-cost retailers. Furthermore,
changing their preference for cheaper and more staple foodstuffs did not affect all consumers as
some consumers continued with their typical behaviour. Finally, in terms of sustainability, it is
of note that the preference of many for healthier, organic, and environmentally friendly food
did not change despite the 2007–2009 crisis because their consumption was perceived as
conferring health benefits on consumers.

FMCG Going Online In comparison with the worldwide customers, the Indian customers are
very much like them; living in the world of internet now everything can be found on the
Internet, including getting food from restaurants, getting medicines, and even finishing salon
benefits at home. Although India's Kirana Store is getting ahead, online grocery will be viewed
as a significant channel of distribution in coming future. The purchase of FMCG products
online is increasing at a rapid pace not only in India but also worldwide. Now the Indian
customers purchase online is not only restricted to books, electronic items, or attire. They can
now buy all sort of products, for example, cleansers, shampoos, hair oils, food etc. From one
viewpoint, the ecommerce giants, for example Flipkart and Amazon sell shampoos, hair oils
and other individual care items, however online platforms like Grofers, Big Basket , Flipkart
Supermart , Amazon Pantry give grocery items, vegetables, and packaged food on the
doorsteps of customers. Customers at work are occupied with their timetables, and these kinds
of platforms give them a very big relief since they can shop anyplace, anytime. Moreover, in
current scenario it is seen that there is huge rise in purchasing of FMCG products on various
ecommerce platforms worldwide.

Retailing: consumers develop online FMCG shopping habit

During the lockdown, FMCG retailers, which account for more than 60% of store-based
retailing sales, have been permitted by the government to continue operations as they sell
essential and consumer healthcare products. While grocery retailers saw an initial uptick in
demand due to panic buying, they struggled to replenish stocks due to disruption in supply
chains, resulting in stock outs.

E-commerce companies focusing on grocery sales also recorded an initial spike in sales due to
people being confined to their homes, but many later had to halt operations due to logistics
issues. E-commerce is expected to benefit over the long run, with a greater number of
consumers developing an online grocery shopping habit.
Non-grocery specialists, especially apparel and footwear specialist retailers, which went into
complete shutdown, will witness a larger impact on their revenues. It will take a few more
months after the lockdown for retailing operations to normalize, while a period of
precautionary measures would lead to a shift in consumers‘ shopping channel preferences.

India's consumer groups are similar to global consumer groups; living in an Internet-based
world, everything can be found on the Internet, including ordering food from restaurants,
getting drugs or even completing salon services at home. Although India's Kirana Store is
gaining ground, this will continue to be the dominant format, but online grocery stores will
soon be seen as an important distribution channel. Online fast-moving consumer goods are
growing rapidly. Online shopping for fast moving consumer goods (FMCG)/consumer
packaged goods (CPG) has emerged not only in India but also throughout the world. Indians
buy online is no longer limited to books, electronic products or clothing. Consumers can now
purchase all fast-moving consumer goods such as soaps, shampoos, hair oils, packaged foods,
etc. On the one hand, leading ecommerce portals such as Flipkart and Amazon sell shampoos,
hair oils and other personal care products, but on the other hand e-commerce portals such as
Grofers, big baskets provide groceries, vegetables and packaged food on the doorsteps of
consumers. Consumers at work are busy with their schedules, and these portals provide them
with a lot of convenience because they can shop anywhere, anytime.There are many reasons
why online shopping for fastmoving consumer goods/CPG products has become a difficult
task. They are as follows; Logistics costs, Global Retail Business, Lack of discounts. However,
there are few reasons why online shopping for FMCG/CPG products should be successful.
They are as follows: 1. Change the lifestyle of consumers - Usually, today's consumers do not
have much time to go shopping in physical stores. Then, these consumers look for e-commerce
sites that offer fast moving consumer goods because they save time and can line up at the
checkout counter at the supermarket. The use of mobile phones is increasing at a rapid rate to
provide convenient access.
 LITERATURE REVIEW

 Consumer decision process carries five stages, starting with Problem recognition and
following
Information search, Evaluation of alternatives, Purchase decision and finally Post
Purchase behaviour. Problem recognition starts with the perception of need and moves
towards information search where consumer uses internal and external sources to
analyze given information and use that information in the next step of evaluation of
alternatives. While evaluating alternatives one assessing values of the products by
giving weights. After evaluation of alternatives, consumers move towards purchase
decision where they may encounter three possibilities, from whom to buy when to buy
and do not buy. Once they have actually made the purchase now it comes to Post-
purchasebehaviour, whether they are satisfied or dissatisfied with the purchase. (Kotler,
2012).

 Priyanka Sharma (2017) performed a research study on ―Consumer Behaviour towards

Online Shopping-An Empirical Study With Reference To Bhiwani City, Haryana‖. The
main objective of the research was to identify the relationship of demographic factors
that influence online shopping, to study the preferences of the consumers toward online
shopping and the satisfaction level of the consumers while they shop online. To achieve
the objective, null hypothesis „Online shopping is not reliable and trustworthy to the
consumers‟ was tested. The sample size of the research was 100 respondents from
Bhiwani City in Haryana state. After the data analysis and interpretation, the author
concludes that the internet has given rise to great potential for businesses through
connecting globally.

The people having an annual income below Rs 2, 50,000 prefer cash on delivery and
above Rs 2, 50,000 prefers Internet banking payments. Cash on delivery is found the
most popular payment method for online shopping among consumers. The most of the
people having annual income below Rs 4, 50,000 spends between 15003000 per month
for online shopping. People having annual income above Rs 4, 50,000 spends above
3000 per month for online shopping. The price of the products has the most influencing
factor on online purchase and online shopping is getting popular in the younger
 generation. The Majority of the respondents buys from flipkart.com which is thus one
of the leading online shopping websites in India. The main barrier is the safety

of payment and privacy issue in the process of online shopping. This increases low
levels of trust on online stores therefore; sellers have to make proper strategies to
increase the consumer‟s level of trust with them.

 Pandey and Puntambekar (2016) paper states the tendency of consumer behavior
towards shampoo brands. In today‘s time both male and female consumers are
conscious towards their appearance. Shampoos have popularized a lot in few decades.
TV advertisements have played a major role in the buying of shampoo. The city of
Madhya Pradesh is a small city and almost in all cities modern products such as
shampoo are widely used by residents, regardless of their age and other population
factors.
 The study analyzed the socio-economic background of the respondents and their level
of satisfaction. Consumers buy the products only if it is eye catching.
 (Dr. Aparna P. Goyal, 2016; Joshi, 2017) studies how online marketing has affected
consumer decision process related to FMCG products. The study relates to how online
marketing plays an important role to influence their buying decision. The conclusion of
this report is trust is an important factor for buying online. Online buying of FMCG
products increases in India, the companies need to read the comments or review of
customers for their products that help the companies to resolve the issue. The company
should always give true information about their products because false information
leads to destroying the image of companies.
 (Dr.S.Sudhamathi, JULY 2017) The author discusses the buying behaviour of
customers in FMCG products. The study revolves around to know factors influencing
consumers preferences. The author discusses the consumption pattern, their lifestyle,
perception about the product through advertisement. The conclusion of the report is
consumers are more focus on quality rather than the price also health is an important
factor that consumer focus to buying online.
Research Methodology

Research Objectives
The main objectives of the research are: mpact of Demographic factors in the channel of
selection in FMCGs.

• To identify factors determining the channel selection in FMCGs.

• To check whether holidays and weekends affects the online or offline FMCGs buying
behavior of respondents.
• To examine the factors influencing the consumer to switch from the offline shopping to
online shopping.

• To find out ‗shopping experience‘ of FMCGs during special offer days.

• To find out the app used for FMCGs online shopping.
• Overall buying behavior of the consumers.
• To study the factors for increasingly shopping for FMCG online.
Data Analysis & Interpretation
Introduction
Consumer survey is necessary in any form of marketing research because consumer is the only
"King" in the market and his/her behaviour changes day by day.

Selection of the products and channel of selection reflects the faith of the Consumer. The
behaviour of the buyer's changes according to their demographic factors, Price, Trust,
Convenient, Services and the past shopping experiences. The study of consumers behaviour is
necessary to now there needs and demands to implement the most effective marketing policy of
the firm.

To conduct the survey, Questionnaire method was used. Questionnaire is the most
common research instrument. A Questionnaire is a set of questions with or without the space of
recording the answer. The questions can secure the relevant facts or opinions from informed
and interested respondents included in the sample survey.

In the following subsequent section, the data obtained from the respondent are analyzed
statistically. A convenient sampling technique was made use for this survey and the number of
respondents chosen was 100.

Methods of Data Analysis

In terms of quantitative research approach, the data analysis method also follows a quantified
approach whereby raw numeric data is statistically analysed for making sense of the data and its
comprehension unlike in research, which follows a qualitative research approach. Qualitative
research approaches usually adopt an unstatistical approach for the analysis of the data since the
data collected could hardly be quantified. The approach these types of research follow usually
involves interpretation.

With this respect, the present study focuses on the use of a statistical analysis. This is because
the study follows a quantitative approach and deals with the questionnaire that has quantified
responses. In order to analyse precisely, SPSS would customers' for making sense of the raw
data collected from the 100 participants. SPSS stands for Statistical Package for the Social
Sciences, which is a program used by researchers in order to perform both entries of data along
with analysis. SPSS has been considered as the tool for analysis since it allows handling both
small and large data sets and entails different tests for statistical analysis.
SPSS is a common tool used by researchers of all levels due to the benefits it offers such as the
inclusion of tables and graphs. For this purpose, SPSS has been selected as the method of data
analysis. With this respect, both descriptive and inferential statistical tests would be used. These
tests are used since they enable the better understanding of the data. With this aim, the mean and
standard deviation was used by in terms of descriptive statistics while t-test and regression
would be used for highlighting the responses that answer the research question.

As per the questionnaire, the question wise analysis is done below.

QUESTION WISE ANALYSIS :

Total sample collected :

The total number of respondents

were 100. Sample details by
age groups:

The above graph represents that the majority of the respondents i.e. (73%) belongs to the age
group

of 18-23 years. oSample details as per occupations

The above graph shows the occupation of the respondents in which majority of respondents i.e.

(80%) belongs to students followed by 8% service & 7% Professional.

oSample details as per Income (Per Month)

Above table is revealing about the Income of the respondents (per month), in which majority of
respondents i.e. (65.3%) belongs to the category of income from pocket money and (14.3%) is
in the income group of less than 15k
Sample of people in prospect of preferences

The above graph is showing the respondents in prospect of preference of online shopping of FMCGs
towards online . Above table reveals the shopping preferences of Consumers towards the online shopping
of FMCGs ,in which majority of respondents choosed to buy online Moderately i.e. (45%) , (27%) High
and (14%) Very High .
:
o Sample for which method prefer by user most

Above is the chart, representing the method used by the respondents most. Out of the total

respondents, majority of respondents i.e., 62% of the respondents use Mobile Applications

and 20% uses websites. oSample data for factor of importance in online shoping:
Above table reveals about the various factors according to the importance while Online
FMCGs Shopping,
Consumers use to keep in mind. According to which,"Variety, followed up by , Discount ,
Return policy &
Offer " plays very important role while very few of respondents selected factors like "Offer ,
Discounts,

Return Policy & Product Comparison" are not important at all to them. oSample data for online
shopping effects week days or holidays:

Above data was collected for survey to know that whether weekdays or Holidays effects on the
purchase decision of the Consumer’s . This survey was done on the basis of 5 likert scale which ranges
from Not important to Very
Important. Majority of respondents i.e. 35.4% choosed that there purchase decision depends upon
Weekdays or Holidays as it is important , followed by 22.2% of respondents said that there purchase
decision moderately got effected on the basis of Weekdays and holidays while 11.1% respondents
choosed that there purchase decision never got afftected due weekdays and holidays .

o Sample for monthly frequency of buying FMCGs :

According to the above chart, monthly frequency of buying FMCGs online is being

surveyed. Majority of respondents i.e. (34%) choosed monthly frequency of 2 and 27%

chooses its frequency of buying 1 FMCGs per month. o Sample data for knowing customer

prospect in respect of window shopping

Above data reveals about the analysis of weekly online window shopping for FMCGs in which
it is found that majority of respondents i.e., 42% use to do for 0-2 times a month and 36%
respondents use to do for 2-4 times a month .

o Sample data for knowing purchase decision depends on festive offers or not -
Above data reveals that the majority of respondents I.e.,(32%) purchase decision Always
depends upon the festive offers, 30% purchase decision Sometimes , & 27% purchase decision
very often depends upon the festive offers . oSample data to know how much people expense
on apparels online-

This graph reveals about the monthly expenditure of the respondents for FMCGs shopping with
special reference to online . This data revealed that 50% respondents expend less than Rs2500
monthly for FMCGs online shopping and only 14% expend Rs.5000 to Rs7500 monthly.

o Sample data for factor make you prefer online instead offline-
Above table shows the factors that makes respondents order FMCGs online instead of offline .
Out of the total respondents, majority of respondents i.e., 36% do online shopping as it is
convenient and 25% for

Discounts and 13% Choices & Quality. oSample data for user satisfaction

Here, In the above graph, different level of experience of online shopping are being showed
between the scale of highly satisfied to highly dissatisfied. The majority of respondents, i.e.,
(54.5%) are satisfied and

23.2% are Highly satisfied while 20.2% are neither satisfied nor dissatisfied.

o Sample data for knowing which factor stop you to buy online-
Above represented chart is the representation of the factors that stops Consumer‘s to buy
FMCGs online . On the various parameters , the major factors that stops online shopping is
delivery durations for the majority i.e., (40.8%) belongs to 40 respondents and High Delivery
Charges for 31 users i.e 31.6% of the total respondents.

oSample data for knowing most prefer shopping website-

Above graph reveals about the online site which is preferred most for the FMCGs online
purchase. Graph reveals that majority i.e., (38%) of respondents uses Amazon Pantry and 21%
uses Flipkart Spermart while 15% uses BigBasket.

o Sample for overall experience of online shopping-

This data reflects the overall satisfaction of the respondents on the five likert scale range
between excellent to very poor. The majority i.e.(44%) respondents responded that they had a
very good experience while 34% respondents responded that they had overall Excellent
experience of FMCGs online shopping.

FINDINGS

• Majority of respondents i.e., (73%) belongs to the age group of 18-23 years.

• Majority of respondents i.e., (80%) are students.

• Majority of respondents i.e., (65.3%) are dependent upon their pocket money.

• Majority of respondents i.e.,(45%) chooses to shop FMCGs online moderately.

• Out of total respondents, 62% chooses to shop online using mobile applications.

• Variety followed by Return policy , Discount & Offers are the major factors influencing
the buying behavior of the consumers with special reference to FMCGs.
 • Most of respondents chooses that week days or holidays is important to their
purchasing decision while online shopping.

• Majority of respondent's monthly FMCGs online buying frequency is 2.

• Majority of respondent's i.e.,(42%) monthly Online window Shopping frequency is 0-2

and 36%
respondents chooses frequency of 2-4 times.

• Always, festive offers affect the most of the respondent’s online FMCGs purchase
decision.

• Majority of expenses 2.5K, a month on purchase of FMCGs online.

• Convenient is the major factor to affect majority of respondents, i.e., 36% to shop online
instead of offline.

• 54.5% respondents are satisfied with their online shopping on offer days.

• Delivery durations followed by High delivery charges is the major factors that stops
respondents to shop online.

• Amazon Pantry followed by Flipkart Supermart&BigBasket are the most preferred site
used by the
respondents for Online FMCGs shopping.

• 44% of respondents, rated very good overall experience of online shopping

LIMITATIONS AND SCOPE FOR FUTURE RESEARCH

• The major respondents undertaken in research is constraint to North India.
• Majorly, the respondents are dependent on pocket money.
• The sample for the study taken is of only 100 respondents.
• The sample is small for the generalization of findings.
• This kind of study can be carried out for large sample by considering product or service
specific online shopping behavior.
 • The further future study can be carried out by considering other important factors
affecting online shopping intention of Generation "Z‖ with special reference to FMCGs.

FINDINGS

• Majority of respondents i.e., (73%) belongs to the age group of 18-23 years.

• Majority of respondents i.e., (80%) are students.

• Majority of respondents i.e., (65.3%) are dependent upon their pocket money.

• Majority of respondents i.e.,(45%) chooses to shop FMCGs online moderately.

• Out of total respondents, 62% chooses to shop online using mobile applications.

• Variety followed by Return policy , Discount & Offers are the major factors influencing
the buying behavior of the consumers with special reference to FMCGs.
 • Most of respondents chooses that week days or holidays is important to their
purchasing decision while online shopping.

• Majority of respondent's monthly FMCGs online buying frequency is 2.

• Majority of respondent's i.e.,(42%) monthly Online window Shopping frequency is 0-2

and 36%
respondents chooses frequency of 2-4 times.

• Always, festive offers affect the most of the respondent’s online FMCGs purchase
decision.

• Majority of expenses 2.5K, a month on purchase of FMCGs online.

• Convenient is the major factor to affect majority of respondents, i.e., 36% to shop online
instead of offline.

• 54.5% respondents are satisfied with their online shopping on offer days.

• Delivery durations followed by High delivery charges is the major factors that stops
respondents to shop online.

• Amazon Pantry followed by Flipkart Supermart&BigBasket are the most preferred site
used by the
respondents for Online FMCGs shopping.

• 44% of respondents, rated very good overall experience of online shopping

LIMITATIONS AND SCOPE FOR FUTURE RESEARCH

• The major respondents undertaken in research is constraint to North India.
• Majorly, the respondents are dependent on pocket money.
• The sample for the study taken is of only 100 respondents.
• The sample is small for the generalization of findings.
 • This kind of study can be carried out for large sample by considering product or service
specific online shopping behavior.
• The further future study can be carried out by considering other important factors
affecting online shopping intention of Generation "Z‖ with special reference to FMCGs.

CONCLUSIONS AND RECOMMENDATION

Aim of the research is to identify the new consumer‘s online behavior paradigm amidst
COVID-19 with special reference to FMCG Industry. This study provides mixed results
about the factors influencing online buying behaviour of consumer‘s towards
FMCGs .The study revealed that factors like Price, Return Policy, Convenient,
Discounts, Qualities, Ease in product comparison are important factors for online
shopping. Further the analysis of respondent‘s demographic profile is carried out and it
is found that according to Occupation, there is no difference in responses of towards
factors influencing online shopping towards FMCGs, i.e. each respondents of each
groups are giving equal importance to these factors and same is with respect to income
group, i.e. income category vise there is no difference in responses towards factors
affecting online shopping. These findings may be helpful to online marketer for the
development of the marketing strategies. The large numbers of studies have been
 conducted by various research scholars and academicians nationally and across the
globe, exploring the factors that may affect online buying behavior of various
consumers. This research work is an attempt to explore the factors that may affect the
consumer behaviour paradigm towards FMCGs with special reference to online
shopping. The study was conducted by drawing a sample of 100 respondents pursuing
higher education, professionals, service business and house wife through and with
various institutions among July 202. Relying on existing literature; variables were
considered and offered to respondents in form of a closed ended questionnaire to mark
their responses on a five point Likert scale. The collected data was analyzed with the
help of statistical package for social science (SPSS). The results revealed four important
factors viz. perceived product comparison, perceived returning policy, perceived offers
and perceived discounts to be affecting the online shopping behavior of consumers
towards FMCGs. As per the data collected and analyzed through SPSS17 it is clear that
the majority of Consumer‘s i.e., 45% moderately likes to shop FMCGs online. Offers,
Discount, Convenient, product comparison and return policy are the factors that
influence the buying behaviour of the majority of the consumers buyers. The factors
like high delivery charges ,delivery durations and non availability of product at PIN
Code are the factors that affects negatively in making online FMCGs purchase
decisions. According to the survey, Amazon Pantry followed by Flipkart Supermart and
BigBasket are the most preferred site by the consumer‘s. Overall experience of the
consumer‘s online FMCGs buyers is very good.

This research study only investigated the North Indian consumers. The results of the study
might not be generalised across India. Future studies could determine reasons why the
minority of consumer‘s don't prefer shop FMCGs online

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