Analysis On Impact of Covid-19
The non-stick cookware market varies from region to region on a large scale. For developed countries, the purchase of non-stick cookware may be an essential product for home and kitchen materials but for developing country it is still non-essential. Even in the Asia-Pacific region, the market differs a lot from country to country. China being the largest manufacturer of kitchen materials as well as an appliance in the Asia-Pacific region, the breakout of coronavirus and shutting down production there has created a lot of ruckus in the entire region. Supply chains were dismantled completely, demand was continuously falling, unavailability of labor, and country lockdown and high rate of deaths have left the entire region in the morn.
As per the government and manufacturers, if India wants they can produce enough to cater to their local demand and can also contribute a good amount of share in exports. Many countries are now seeking a replacement of China as a supplier and according to their experiences; they could arrange it from India.
AFTERMATH OF COVID-19 AND GOVERNMENT INITIATIVE TO BOOST THE global NON-STICK COOKWARE MARKET
The government has taken various measures to maintain the supply of raw materials such as to maintain the demand and supply of non-stick cookware, the government of various countries has launched various schemes to start local manufacturing such as the Phased Manufacturing Program (PMP) has been launched by the Indian government to develop a manufacturing ecosystem. Other than this, the government is providing grants, loans, and other financial aids to the small and medium-sized enterprises so that they can sustain in the market and does not exist. On a smaller note, but they can at least cater to the demand of their regions if not for a country or state.
Other than this, the government is also planning to put a barrier or limit on how much one supplier can sell on their portal. This will help manufacturers in not depending on one supplier but will have a strong supplier portfolio. So, in case of any emergency, they will not be impacted much and can continue manufacturing.
STRATEGIC DECISIONS FOR MANUFACTURERS AFTER COVID-19 TO GAIN COMPETITIVE MARKET SHARE
Manufacturers are one of those elements of the entire supply chain that has been affected the most due to the breakout of COVID-19. The major problem faced by the manufacturer is due to their overdependence on one single supplier or one supply chain. Also, they were not watching out for their operating expenses and stock inflow and outflow carefully. COVID-19 has worked as an eye-opener at least for those manufacturers on certain grounds.
Another strategic move adopted by manufacturers of non-stick cookware is to segregate the suppliers from segment to segment. For instance, Non-stick cookware and microwave both come under the kitchen material category, but now manufacturers are separating their suppliers based on the product rather than category. Even if a single supplier is capable of supplying raw material for both non-stick cookware and microwave, manufacturers are not opting for that. To avoid any further such crises they are preparing themselves now.
Impact on Price
Due to the breakdown of COVID-19, the prices of kitchen material items such as non-stick cookware, microwave, electric kettle, refrigerators, and chimneys, among others have increased gradually especially post-May 2019. In various countries where components are imported from China, a price rise was necessary due to short supplies from coronavirus-hit China. It is expected that products may face a price little hike. Due to component price rise, and high shipment and import cost, the end-product price is increasing. This has restrained customers from making any buying options until and unless there is any need or urgency.
Impact On Demand
Non-stick cookware is considered a part of the kitchen materials market. The breakout of COVID-19 has decreased the demand for such goods. In countries such as India where the quantity sold is high, the demand has witnessed a sharp fall as the citizens are facing income crises. Products such as Non-stick cookware, grills among others are those products that lie in the last category and opted for purchase only when the income is enough to support other regular expenses.
But in various countries income is not a restraining factor generally. Though it will be unfair to say that the demand has increased with an exponential growth rate as compared to previous years, but yes has gone down by a small margin.
Impact on Supply Chain
The supply chain of the non-stick cookware market has been disrupted due to delays in transportation and labor availability. Various countries are facing complete lockdown, logistics constraints are making the delivery of non-stick cookware. Also, the availability of raw materials required to manufacture these items of kitchen materials is a matter of concern for manufacturers. To avoid this situation government of various countries is granting transportation permission based on the necessity and requirement to maintain smooth supply in the market and to fulfill the demand mainly from domestic production.
Due to the pandemic, most of the production sites are under lockdown. Keeping the safety of laborers in mind, the limited number of laborers is called at a time for production purposes. This has also impacted the market for non-stick cookware. From the customers' end, the delay is in the final delivery of the product. It means, customers who are buying the products online are facing issues with the timely delivery of products and thus opting for only necessary items to be ordered online.
Conclusion
Undoubtedly the COVID-19 has impacted the lives of people upside down. The slight dip in demand for non-stick cookware and high supply crunch and difficulties has affected both manufacturers and customers. It is expected that once the lives of people will be normal there will be a change in consumer behavior and a change in their purchase behavior.
Another opportunity is that for now manufacturers are looking and focusing on their supply chain strategy. They are relying less on imports for raw materials and instead opting for local procurements. People are trying to reduce their operating expenses, costs and continuously monitoring stock levels. Thus, as per other players in the market COVID-19 has a short term impact, while as per other players it may have long-term implications.
