Whether it is right to start an FMCG or an essential goods business in a time of pandemic?
The answer to this question is fairly, NO!
Mainly because we at Esycommerce focus on building a brand and not about simply slapping just a label on any generic product or commodity and just starting trading. Most big box retails generally do that. It’s just that they have a word for slapping a brand name on something generic. They call it white labeling or in house brands or any other new word that might be there. But what we do want you to be worry about is the general attitude of ride the wave. We have seen a number of examples of hand sanitizers during lockdown whose quality barely would surmount as possible in any ordinary day. But just because we are in such a lockdown in such a pandemic situation, anything that they’re providing to us right now is something that we have to bear with. As expected, during the pandemic, there’s a sudden rise in the manufacturers of PPE or personal protection equipment’s for the medical staff mostly, and we are all fine with this so long as generally the quality is maintained.
But the main question is, even though the requirements of PPE kits is in swing right now, will your new business be able to outlast the lockdown itself? Not to mention that the quality may or may not be in question, since this was not your primary source of business up until like the last four weeks or so. All of this is only under the assumption that you are just trying to make hay while the sun shines, especially during a time where this is not your primary competitive area, but you are just trying to make a quick buck or do some business just in order to probably pay your bills or keep the lights on.
These worries are not just limited to medical supplies. Even if you talk about trading with essential items like food, pulses, household products, is a pandemic or a panic buy really an excuse for a business plan? Not to mention the fact that there are already players in the market who themselves are struggling to take their products right through their distributors or their customers. If you are thinking about launching a business of essential services or goods and products in this eye of the storm, that’s quite fine. But before you jump in, make sure you have answers to a couple of most basic questions mentioned below. even if you are not launching it in such a time.
- Would I be able to maintain my clients even after the lockdown is lifted and the original suppliers of my client are able to resume full operations?
- Will my clients be able to pay me in time right now so that I can reinvest in my own business or scale up the operations?
- Will I be able to maintain my prices as well as profit during a business as usual situation where none of the lockdown is affecting my business directly or rather, there is no lockdown for that matter?
Building a business takes time, effort, and sure, some luck. You may be strategically placed to take advantage of the skewed supply and the acutely high demands, but this leverage will not last forever, so it’s better to start planning for a normal future while basking in an abnormal present. That’s all for today. As always, you can always follow us on the below profiles. Get in touch with us in case you have any questions.
Don’t be afraid to reach out to us. We are more than happy to talk to you. Stay home and stay safe.
