WHAT IT MEANS TO BE ‘CLEAN’ IN TODAY’S FMCG MARKET

The consumers today are more educated than ever. They are exposed to the whole world, thanks to the internet. Digital revolution has played an important role in providing them any and every information they need. And this is just the beginning. It is not restricted to information alone. Shopping is another aspect where they are putting this knowledge to use. They have options galore and it has become easier for consumers to choose from. They are bombarded with exciting offers at all times and it becomes difficult to not get lured. Be it online shopping or offline, every now and then there are lucrative discounts in offing throughout the year. This has also made consumers savvier and more mindful of their purchases. They have understood that their ‘want’ is no more their ‘need’. Hence they are able to make smart decisions and their selections are for specific purposes. They know what is in trend or what will suit their lifestyle or personality and they are ready to pay for the willing to splurge for the products that meet their demands. Interestingly, the marketers are well aware of these facts. 

As per the recent trend, the consumers are more drawn towards products that are organic in nature, cruelty free and have lesser chemicals in them. According to a recent survey results from our strategic partner and product data company Label Insight, 39% of U.S. consumers say they would switch from the brands they currently buy to others that provide clearer, more accurate product information. In a nutshell, the end users won’t shy away from desert their old brands for newer ones that are more transparent them. Additionally, 73% of consumers surveyed by Nielsen say they feel positively about brands that share the “why behind the buy” information about their products. This extra step helps brands earn a buyer’s trust and shows them in a good light. What’s more, 68% say they’re willing to pay more for foods and beverages that don’t contain ingredients that they perceive are bad for them. In some cases, consumers are more interested in knowing what’s not included than what is included in the products they buy. If the on the packaging of a product in big bold letters mentions, ‘NO Palm Oil’ or ‘NO PARABENS’ or ‘CURELTY FREE’, it immediately draws buyers’ attention. They feel that the brand is more committed towards consumers’ well being and could be a better alternative. In fact, 53% of consumers say the exclusion of undesirable ingredients is more important than the inclusion of beneficial ingredients. 

So what does this mean for fast-moving consumer goods (FMCG) manufacturers and retailers? This means ‘how’ and ‘why’ the product is better than its doppelganger in the market is equally important as the product itself. This means, it is important for the brand or the manufacturers to provide complete information about what has gone into making that particular product. Notably, they’re the primary decision-making criterion that drives a purchase, in the absence of which, there is a possibility of consumers stray away from the brand.

Apart from transparency and claims like “natural,” “organic” and “gluten free” the focus has also given way to a growing “clean” label trend. This trend hinges on consumers’ desire for easy to read labels that contain simple ingredients, something that is uncomplicated for a layman to understand. For consumers looking to take transparency a step further, claims on how products are made, such as fair trade, have become a factor in the purchasing decision. Influencers also play a pivotal role here. They have an eye for ‘clean’ labels and can bring to fore lesser known brands which can give some leading brands a run for their money, solely on the basis of fair trade practices, even if their products are steeply priced. In some cases, packaging has also become decisive factor. Brands claiming to be plastic positive, thus being environmental friendly, are on the rise. Consumers have found a sustainable alternative in shampoo bars as opposed to bottled ones. It is a conscious switch made by them to save the environment. 

Despite the growing use of the term “clean” to describe products across the FMCG space, however, there is no universally accepted definition for what constitutes a clean product. So to provide some analytical rigor to