Important Trends in FMCG Industry You Should Know

The FMCG business was once King but now has found itself in a somewhat unfamiliar position. Reports from McKinsey's 2018 study on the industry assert that the traditional fast-moving, the consumer-loved industry is fading away from its former glory. Much of this is due to the fact that we’re living in an era where the Internet is King, and almost anything can be done online. The former FMCG giants who solely relied on sales from retail and export are falling behind, in competition with those who adapted to the change and started pushing their brands online. 

Thus, now a lot of FMCG companies are viewing a new growth dilemma. With the development of technology in this digital age, it is essential that corporations who desire to stay on top keep up with the environment and adapt. Here we discuss the five developing trends in the FMCG industry, and the three key steps FMCG companies should take to stay successful.

Trend #1: The Development of a Digital Marketing Strategy?

In a day and age where information and data are easily accessible everywhere online, traditional marketing has become less effective. Top companies are now leveraging digital technology to segment their customers, identify their preferences, and build precise campaigns to target their customers in a more immediate and close way.

Trend #2: The Rapid Rise of Small Brands

Over recent years, many small brands have appeared in the market. The benefit of small brands is that they can be marketed in a way that is specifically tailored to their consumers through digital channels. At the same time, small brands also acquire low operating costs and yield high margins, making them profitable if done accurately. The successful small brands attract investors and ultimately establish themselves amidst the race.

Trend #3: Consumers Like “Healthy” Food

When branded correctly, the so-called “healthy” foods are products that are organic or contain less sugar and additives. Regardless of “how healthy” these products actually are, consumers pursue them, as they are always thinking about the ingredients in what they buy. Companies have leveraged the market demand for “healthy” food and have found success.

Trend #4: The Internet is Everything

?Ride the internet, and leverage ways to sell on the internet. Online platforms are using to purchase goods by customers. Although other enterprises have jumped onto e-commerce more quickly than FMCG, the potential for future growth is unlimited.

Trend #5: The Development of New Retail

E-commerce and new retail will further squeeze out traditional retail in market space, and consumers will remain to push in that direction. Companies that don’t head this direction will struggle to keep up.

With all these parts dominating the FMCG industry today, corporations need to find ways to adapt to the rapid changes to visit on top. 

Here are three keys to tackling the change:

1. Evaluate the risks and rewards for each of your product categories and brands to know which ones will survive online

2. Start preparing a transition strategy from traditional to new models, whether digital or innovative.

3. Develop an action plan with a clear work breakdown structure, timeline and milestone structure, and a defined division of roles.

?And of course, with the forwarding movement, one must be equipped with the right talent and the right people for the job. Understanding how to apply innovative marketing models and digital transformation is necessary for the FMCG industry.

To stay on top, be sure to groom agile leaders with a strong understanding of industry dynamics, as well as adaptability, and surely you’ll overcome the challenges in the industry amidst the digital era.