Sri Lanka’s fast-moving consumer goods (FMCG) space has experienced many ups and downs over the last two years, and consumer behaviour has changed accordingly.

Chairperson and Managing Director of Unilever Sri Lanka Hajar Alafifi Laadel listed some of the price hikes that contributed to this dynamic – including inflation, fuel and electricity prices, and changes to the tax structure, in a recent LMDtv interview.

The poverty level in Sri Lanka has doubled – many households are going to run short of money by the end of the year,” she opined, adding that “of the six million households in the island, one million is either lapsing or consuming less.”

Laadel elaborated on the impact on purchasing behaviour, noting that consumers are becoming “very selective when it comes to the goods they buy… They buy products that they believe are trustworthy and will deliver for the price they pay – meaning the value behind the price.”

She shed light on the behaviour of different consumer segments: “In urban areas, we see more people moving towards supermarkets or organised trade, and there has been a spike in good brands that deliver with high efficacy and high quality at a good value.”

“When you move to the outskirts, we observe that the majority of the demand goes to smaller packs or brands that may not offer the best quality but at least satisfy a need,” she added.

Additionally, Laadel spoke of the need for companies to engage in a balancing act when it comes to profitability and consumer centrism.

“It all comes down to why you do what you do,” she stated, noting: “Profit is important because it’s a byproduct of success but what brings it is the consumer. There should be a balancing act in everything we do – and we have to adapt to consumer needs at the right time.”

The Chairperson and Managing Director of Unilever Sri Lanka also emphasised the importance of balancing the triple bottom line – i.e. people, profit and the planet.

Explaining this perspective, she said: “In times like this, if you’ve cut off your people, then you haven’t put them first. Of course, you can take some drastic actions that will make your profit and loss statement appear not to be robust for the long term and may have issues with shareholders. And then, you can say the planet is there forever, abuse resources and let the next generations deal with it – but that’s not really how it works.”

“We have to make sure that we leave Sri Lanka better than we found it so having the right equilibrium between people, planet and profit is number one in ensuring we know the purpose for which we’re working,” Laadel said.

Furthermore, she noted that companies and brands are role models for the general public: “We have many brands that are taking an active place in the community. And we believe that by doing so, the community is going to thrive and then take on that beacon to build on it.”

She called on all parties – be they in the private or public sectors, or civil society – to join hands and “be a solid force of one.”

“There is no place for division here,” Laadel emphasised, explaining that Sri Lankans must “go big with partnerships and collectiveness to build a better future that will be sustained.”

Adding to this, she also stressed that “we need to sustain the momentum and tranquil seas that we’re surfing to let the consumer thrive – and let our kids thrive in their country and believe in a better life for themselves and the generations to come.”

“I believe Sri Lanka is quite civic-minded – our people are generous, and they put values above everything and believe in making their nation a better place,” Laadel said.

And she concluded on an optimistic note: “We have talent that we know is easily exportable globally and operate in a market that gives us the ability to bounce back from crises with speed. Honestly, we have all it takes to make Sri Lanka an even better country than it is today.”