Protect, prioritse, pivot the new mantras as FMCG CEOs reboot for new year

Workforce protection top of mind for many CEOs at CII's annual FMCG summit held virtually, as world enters early vaccination stage

The Covid-19 pandemic has altered the way consumers behave and businesses are managed, some of the country's and world's top chief executive officers (CEOs) said at the annual FMCG Summit, organised virtually by the Confederation of Indian Industry (CII) on Wednesday.

The buzzwords that emerged through the summit was that CEOs were keen to protect their workforce even as the world entered a phase of early vaccination, chalk out their priorities to operate efficiently and pivot to new realities wherever needed.

Laxman Narasimhan, the India-born global CEO of Reckitt Benckiser (RB), said that flexibility, resilience, optimism and purpose were four attributes that the maker of Dettol and Harpic counted on during the pandemic. Dettol overtook rivals such as Unilever's Lifebuoy and Lux in the Indian soap market in the first half of 2020, led by increased demand for hygiene products.

Dettol has continued to gain shares as consumers rely on trusted names in a health crisis. But the gains have come after a lot of hardwork. 

"Covid-19 has tested us like never before. We came to realise that what was happening within was smaller than what was happening outside and that we needed to adapt quickly. There is also no right or wrong, but things in the middle and left," Narasimhan, who succeeded Rakesh Kapoor as RB's CEO in September last year, said.

The British consumer goods major has also reimagined the way it does business, right from manufacturing to distribution and sales, relying on local teams in various markets to drive change. "If you recognise the purpose of your existence, you will learn to appreciate human ingenuity at work. At the same time, there are fractures to be taken care of as well," he said.

Varun Berry, managing director, Britannia Industries, which performed well through the June and September quarters of FY21, said that the company took the uncertainty created by the pandemic seriously.

"We worked seamlessly with our teams, connected through calls with people in the organisation. We also prioritised the brands we wanted to focus on during the crisis and focused on efficiencies such as supplying directly to distributors from factories instead of going to warehouses from the factory gate," Berry said.

The strategy of eliminating levels, keeping its attention on core brands and quickly going to market allowed Britannia to take advantage of the in-home consumption habit that emerged through the pandemic. Berry reiterated that the roadmap going forward would be to leverage the strong growth in rural areas, make its portfolio accessible to all and continue investing behind its brands.

"The most difficult task is to build brands and you need to keep nurturing brands to win the trust of consumers," he said. 

Sameer Satpathy, chief executive, personal care, ITC, said that the company saw the pandemic as an opportunity to identify trends early on, launch new products quickly and scale up fast.

"Thirty per cent of ITC's FMCG topline today comes from new product launches, many of which were rolled out during the pandemic. We were clear that we wanted to keep the pace of innovation going and ensure we were tapping the right channels to reach consumers from digital to traditional trade. For this our teams collaborated at every level from research and development to sales, marketing and production," he said.

Bharat Puri, managing director, Pidilite Industries, who is also the chairman of the CII National Committee on FMCG, said that companies should not lose sight of the consumer. "Those who manage today well need not worry about tomorrow. The business of FMCG is about building and sustaining trust. Those who invest in their brands will be rewarded by consumers for the work they’ve done," he said.