What Are the challenges faced by the FMCG sector in 2022?

FMCG Industry which is also called Fast Moving Consumer Goods industry is one of the biggest contributors in the economy & currently stands as 4th largest sector in India economy. This sector involves the production and distribution of goods in very large quantity, high in demand, quick to consume, and easily accessible in the market. This involves from food items, confectioneries, personal care & other essential products which are produced or manufactured in very large numbers to bring down the costing to affordable prices.

??????????????Being one of the largest contributors of economy, our dependency on this sector has only increased after corona. FMCG industry has faced lots of ups & downs in this period due to loss of labour, production delays, unavailability of raw materials, and also by the change in consumer behaviour for decreasing the interactions due to digitalization.

????In the recent times, all these issues has contributed in creating more challenges for the FMCG industry in fulfilling the needs of people. Retail execution & Sales automation are the key challenges the industry is facing. FMCG products are mostly sold through retail outlets.?A proper retail execution plan includes shelf merchandising, order replenishment, trade promotions, store audits, and more. Though driving the distribution and display promotions to contribute a chunk to sales, proper retail execution is very essential in driving the sales to new heights.?

??It has been reported that FMCG sector has lost around 25% of the productivity due to this factor as loss of labour due to migration, health issues and other factors has affected the movement of goods in the retail sector and sales automation. Digitalization has also decreased human interaction, which has also increased the expiry of products in the shelfs of the small retail outlets.

The Covid period has changed the world economy, industries, and lives. All major solutions for these challenges revolve around digitalization and changing strategy based on customer needs. It's also the responsibility of the industry to take charge of its operations from an environmental perspective, along with consumers.

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