Social Learning: The Catalyst Behind the Transformation of the FMCG Industry

Like many other industries, the fast-moving consumer goods vertical is experiencing a metamorphosis. While in-person retail transactions still account for the overwhelming majority of all sales, online retail sales continue to increase. As of 2022, e-commerce sales accounted for $1.07 trillion in revenue and represented 14.8% of all retail sales.?

In response to this shift in consumer behavior, brands in the FMCG and consumer-packaged goods vertical are adopting an omnichannel approach to sales and marketing.?

Retooling their sales and marketing strategies involves much more than simply investing in new technologies and adopting different processes. To cultivate true omnichannel experiences, FMCG businesses must change their workplace culture and upskill their staff.

While there are many strategies that these brands can use to support their upskilling efforts, social learning represents the most pragmatic approach. In this exploration of social learning, we will outline what it is and how it has become a transformative force in the FMCG industry.?

A Brief Overview of Social Learning

Social learning theory is based on the premise that humans learn best by observing and subsequently mimicking the behavior of others. This concept has been studied extensively within the behavior-learning ecosystem.?

According to the 70:20:10 model of workplace learning , approximately 70% of learning occurs through experiences. When employees observe and emulate the behavior of others, they retain information, learn new skills, and become more productive. They acquire the remaining 30% of their skills from colleagues and friends (20%) and through formal training (10%).

In the workplace, social learning can be grouped into two broad categories: formal and informal. Informal social learning occurs when an individual observes a coworker perform a task, asks a supervisor to demonstrate how to use a program, etc.?

When social learning is formalized, the employer creates curated training and upskilling content that condenses information into short, bite-sized chunks. Each learning module features an industry expert with real-world experience.?

This format of formalized social learning is starkly different from traditional training content, which typically features someone with theoretical knowledge of a subject but little to no real-world experience.?

The Nexus Between Social Learning and FMCG

The fast-moving consumer goods space is in a state of rapid change. This change has come from a combination of factors — some represent opportunities for growth while others bring significant challenges.?

In terms of opportunities, the FMCG market is experiencing consistent year-over-year growth. According to Allied Market Research, the FMCG industry will reach a value of nearly $19B by 2031 , a compound annual growth rate (CAGR) of 5.1%.?

To meet this increased demand for packaged consumer goods, FMCG brands must further streamline supply chains, equip their employees to break into new markets, and increase overall organizational productivity by introducing automation technologies.

Fast-moving consumer goods businesses are also staring down two major barriers to growth: supply chain disruptions and a global talent shortage. Social learning can help them overcome both of these challenges.

Business leaders can leverage social learning tools to upskill staff and cultivate homegrown talent. Additionally, they can use social learning to create an inclusive, skilled workforce that is appealing to new hires.?

By becoming hubs of employee learning and development, FMCG businesses can gain an edge over their competitors and adapt to shifting consumer expectations.?

How FMCG Brands Can Harness the Power of Social Learning

Social learning is a highly effective tool for combatting the talent shortage, driving better employee engagement, and upskilling staff to elevate their productivity. However, there is still the question of delivery.?

How will businesses within the FMCG space provide their teams with accessible, engaging, and curated social learning content that aligns with the unique needs of the industry? The answer: Tigerhall.

If you would like to learn more about how Tigerhall is supporting the evolution of the FMCG industry through social learning, schedule a demonstration .?