The 2020 FMCG Industry Performance Is Called The Worst Contraction in 20 Years

Merdeka.com – President Director of PT Sumber Alfaria Trijaya Tbk (Alfamart), Anggara Hans Prawira said, the 2020 performance of the retail sector or fast moving consumer goods (FMCG) experienced the worst contraction in the last 20 years. Where, FMCG contracted by 5.9 percent.

“I think the retail industry, especially fast moving consumer goods, also has a direct impact on this. If we look at the total data for Indonesia’s FMCG in 2020, we experience a contraction of approximately 5.9 percent,” said Anggara in the Forum Indonesia Bangkit Vol.1 , Tuesday (6/4).

Anggara said, based on records from Nielsen’s data, in the last 20 years the FMCG industry had never experienced such a big contraction. Where, in 2018, FMCG contracted by only 1 percent.

“As far as I have noted, during the last 20 years the FMCG industry has never experienced the worst contraction, in 2018 we grew by around 1 percent, this is according to Nielsen’s data,” he said.

This is due to the decline in consumer purchasing power during the Covid-19 pandemic in 2020, especially for the lower middle segment. Coupled with the existence of social restrictions which are believed to prevent the spread of the Covid-19 virus from becoming more widespread, it has greatly affected the retail sector.

“In general, this pandemic has a huge impact on the retail business. We can see that our journey in 2020 to start 2020 with a very optimistic first quarter is very good. Moreover, in March, the retail industry experienced the most extraordinary panic buying, the public’s interest in shopping,” he said.

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But in mid-2020 the retail sector is having a hard time. For example, before the fasting month and Idul Fitri, the retail sector is always busy with buyers buying their needs, but towards the end of 2020 the retail sector begins to revive.

“But mid-2020 is very tough, the period of Ramadan is usually the harvest time for retailers but 2020 is very tough for us, see from July to December purchasing power including the retail industry is relatively weak, but it continues to improve until say 2020 end of December,” he explained. .

Even so, for 2021, the retail business world remains optimistic. Judging by the vaccination process, it is believed that it can quickly restore the economic sector, especially the retail sector in it.

“How about 2021? We see or enter 2021 with our most optimism. Mention the vaccination program is starting, we see vaccination as the key to economic recovery. I think as of March the situation is getting better, so we are still very optimistic that 2021 should be better than 2020. , “he concluded.

Reporter: Tira Santia

Source: Liputan6

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