Thank You to the FMCG Industry—I’ll be cheering for you

For three decades, I have had the privilege of serving the fast-moving consumer goods industry. And I couldn’t take the next steps in my own journey without first saying a massive thank you to everyone I have had the privilege to work with over these past thirty-odd years. I have such deep admiration for the way this industry continues to innovate and reinvent itself to make a positive contribution to the lives of consumers, the communities where we live and work, and to our planet. I firmly believe the best is yet to come. 

While many may marvel at the industry's global scale—with over $10T in annual sales—I have been far more impressed by the industry’s innovation through the cycles. You continue to find creative new ways to grow sustainably at 5-6% per year, adding incremental billions in new sales annually.

All forecasts, including my own, show you will continue to achieve this scaled growth every year for the next decade or two to come. That’s a lot of tubes of toothpaste, skin moisturizers, energy drinks, packaged salads, pasta sauce, baby formula and everything you can find in the center and perimeter of the store—on and offline. Yes, there will be winners and losers each year in search of a slice of the pie, but together you are driving true growth through your long-term commitments to and investments in R&D, factories, supply chains, fabulous brands and store formats, and most importantly, talent. You have nicely set up the industry for sustained levels of growth across the globe.

As a member of the Nielsen team, engaging with talented people in this industry gave me so much energy each day over the last 30 years. FMCG is blessed with the very best brand builders, savvy sales teams, creative supply chain executives, shrewd buyers, creative merchandisers, sharp researchers, and engaging store managers, just to name a few of the professionals it takes to make the magic happen. Around the world, these teams are filled with smart, ambitious, competitive, and resilient people who are the reason you will continue to thrive. 

Facing down a global pandemic over the last several months has tested your mettle in ways none of us could have imagined. And you’ve consistently demonstrated your unyielding commitment to consumers and communities. Yet another proof point that the world should be very bullish about this industry. 

Nielsen’s business has been very fortunate to be a part of this industry for nearly a century, supporting brands and retailers in nearly 100 markets. As a small yet essential part of this industry, the company (and I personally) have always known we could not be the undisputed leader in our little space without your partnership. 

Analyzing markets and consumers, serving as the referee in competitive battles, and being asked to look around the corner for clients—brands and retailers alike—gave me a real sense of purpose and reason to be excited to start each new day—with the strength of the Nielsen brand and its proud history backing me up. Our clients (you) provided me with the license and permission to help you to answer not just the everyday questions, but to shine a bright, unbiased light on growth opportunities for your brands, stores, and online platforms. What an amazing way to spend 30 years, and a responsibility I know every single Nielsener takes incredibly seriously. 

Special thanks to those of you across the globe who really pushed me and the Nielsen teams I led to be bolder and even controversial in our recommendations on where to take your business next, instead of looking for us to simply confirm your own hypotheses in order to “check the box.” Please keep that spirit and those requests coming—that’s what every Nielsener craves. It’s when they’re at their best. Nothing feels better than surprising and inspiring an experienced team of marketers, merchandisers, or salespeople with new growth ideas and how to act upon them with speed.  

Based on being a passionate student of the industry, I do have a few small tips for the future that may seem basic, but I hope you will indulge me. 

1. Expand your denominator. It may feel good to have a large market share, but it is much more enlightening to expand your competitive set as wide as your company's competencies and brands can take you. The bigger the denominator the better—share of total health, share of total daily or weekly calories, share of indulgences, share of Gen X or Y or Z, share of hydration, share of total hygiene, share of major events. This will open up true growth opportunities instead of leaving you fighting for the same slice of small and narrow category definitions.  
2. There is no global consumer. Or national consumer. Or urban or… If there were, what a boring planet we would live in. Individual consumers or micro-segments of communities need to be and can be understood and served. Companies and brands do require global scale, but your local teams require the tools and systems to understand their local consumers—today more than ever. That understanding will engender trust and transparency between global and local leadership. And it will empower you to work together creatively to deliver on the needs and wants of your end consumers with speed.  
3. Dig deeply into the All Other in the Nielsen database. Small and fast will become formidable competitors —which is much more attractive than big and slow. The available growth in this industry will quickly be consumed by local challenger brands, local retailer brands, or those multinational clients that have the courage to build strong local, truly consumer-obsessed teams and empower them to do what they do best. You may gain more insight from studying these competitors than players you go to battle with traditionally.
4. Place the majority of your chips on emerging markets. Keep in mind you need the stomach and stamina for it. The rising middle-class figures of today and tomorrow across Asia, Africa, the Middle East, and Latin America speak for themselves. I have had the privilege to be privy to major corporations’ and brands’ global capital and annual SG&A allocations over the last decade. The words “put your money where your mouth is“ and “play the long game” come to mind. The strong macro and micro tailwinds here will keep blowing for decades to come and these markets will be the driving force for the industry as a whole. 
5. Oh yeah, in case you haven’t heard, digitalisation is paramount. I know you know this, but it’s a means to an end, where the end is having a relentless focus on uncovering the unmet and unarticulated needs and wants of today’s and tomorrow's consumers who happen to love their smartphones and have unlimited access to high-speed internet. 

As I signed off from my last Nielsen video conference last week, it was a bittersweet moment for a number of reasons, but also an optimistic one. I know the best is yet to come for all of my friends in the FMCG industry. The opportunities for growth remain robust—they’re yours for the taking.

I also know the strong and passionate Nielsen leadership team under the stewardship of David Rawlinson has bold plans, investments in place, and incredible talent to take their solutions and hard-hitting recommendations to a new level of excellence and relevance for all of you to win big. 

Thank you for allowing me to hang out with the cool kids for so long—the FMCG Industry! I feel so fortunate to have been a small part of your story. 

Pat