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    ‘Lockdown Districts’ now off Nielsen’s research list

    Synopsis

    In a letter to clients, including top consumer goods firms, Nielsen said it expects an impact on data granularity and delivery schedule and will initiate syndicated surveys, including a specific study on the influence of Covid-19 on consumer behaviour in many markets, including India.

    locckdown-ani-2ANI
    Mumbai: Market research firm Nielsen India has discontinued data collection on its panel stores in “lockdown districts” from March 22, in line with government measures to curb spread of Covid-19, and said it will impact data continuity and consistency over the next few weeks.

    In a letter to clients, including top consumer goods firms, Nielsen said it expects an impact on data granularity and delivery schedule and will initiate syndicated surveys, including a specific study on the influence of Covid-19 on consumer behaviour in many markets, including India.

    "In line with the government enforced lockdown in over 548 districts, effective from March 23, and in line with the curfew, we are stopping face-to-face field work till March 31," said Nielsen's letter to companies, adding they will resume work when some degree of normalcy sets in. “We are aligned with other market research companies on this action. On a case-by-case basis, Nielsen India will be in touch with each client to suggest next steps towards migration or adoption of online or computer-assisted telephone interviewing methodologies.”

    A Nielsen spokesperson said it will help them reduce the risk of contracting or spreading any illness for their people and the communities where they operate and will contribute to the multi-stakeholder effort to contain the outbreak. "This is a worldwide pandemic and is impacting processes in both developed and developing worlds. Data scientists at Nielsen are addressing this challenge with innovative data collection and data estimation methods. These have already been deployed in certain markets, and will be leveraged with suitable modifications in other markets," the spokeswoman added.

    The US-headquartered market researcher collects electronic point of sale (POS) data from stores through checkout scanners. It also uses field auditors to collect sales data through in-store inventory and price checks in some markets and channels, especially kirana stores.

    For the consumer goods sector, there is still a gap between their actual sales performance and Nielsen’s estimates. This is primarily because companies use numbers based on sales to wholesalers and distributors, while Nielsen collects sales information from retailers and their data indicates actual demand. As a result, Nielsen numbers play a crucial role in determining manager’s compensation packages and growth targets.

    Several companies saw high sales over the past week as people rushed to stock up on essentials and groceries amid fears of a lockdown. However, the surge may be temporary and not make up for slowing sales in the past two months in this quarter.



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