Consumers are likely to hold back on discretionary spends:MD Radico Khaitan
While addressing the shareholder meeting Mr.Abhishek Khaitan MD of Radico Khaitan emphasized the need of being frugal and prudent in these uncertain times where it is very difficult to predict consumer behavior and buying and spending pattern. However, he feels despite the next few months are going to be very uncertain and challenging, still, there is hope for the industry since overall factors are favorable in the long term.
COVID-19 pandemic that has resulted in the shutting down of major global economies and consumers may hold back discretionary spending to focus on health and hygiene. Although the spirits industry has faced significant challenges in the short term, he said the long-term dynamics of the industry in India remained intact due to a host of favourable factors. Expansion of the middle-class, increasing rural consumption, greater acceptance of social drinking and a higher proportion of the young population entering the drinking age are some of the factors, Khaitan added.
In his address to shareholders in the company’s Annual Report 2019-20, Khaitan said, “In the current scenario, the company has adopted a deliberate and prudent approach which is not very different from our long-term strategy. First and foremost is the focus on strengthening our brand portfolio.”
Radico Khaitan will continue to launch brands in the premium category, which will contribute to the future growth, he said. The company will reassess and refocus its advertising and sales promotion strategy with the share of digital (www.Booznow.com will help here) to increase even further going forward, he added.
He further said, “Consumers are likely to hold back on discretionary spends with focus on health and hygiene potentially leading to future behaviour shifts. Going forward, technology will take a centre stage for providing convenience and enhanced experiences to consumers.”
“Radico Khaitan has a strong brand equity and a loyal consumer base. This will enable us to continue to gain market shares in the coming years,” he said.
The company would continue to take necessary steps to maintain its “robust foundation and financial strength whilst at the same time delivering differentiated consumer experience”, Khaitan added.