FMCG Industry Outlook
The Fast Moving Consumer Goods Industry(FMCG) is one industry that sits at the heart of livelihoods. Almost all items for our basic needs are found in this industry.
Fast Moving Consumer Goods are essential goods that have a short shelf life, low cost and frequently purchased. They include processed foods, prepared meals, beverages, baked goods, fresh foods, frozen foods, dry foods, medicines, cleaning products, cosmetics and toiletries, office supplies, etc.
There is also slow moving consumer goods that have longer shelf life such as furniture and appliances.
Over the years, the way FMCG companies and consumers have interacted in this industry has changed greatly, thanks to advancements in innovation and technology on the business end. Digitalization has birthed new business models, modes of selling and buying, tracking,etc..
Industry Trends
Data and Analytics
Data analysis involves the use of data to get insights which can provide organizations with business intelligence, helping them make better decisions. This data is available in numerous data sources including public and privately honed data from an organization’s day-to-day operations such as: transaction logs, CRM systems, applications and websites.
Many companies have been able to leverage data from these sources to extract valuable information that can help enhance their operations and offerings to customers.
Aspects such as: inventory management, marketing & advertising – can benefit from data analytics.
Social Media
Social media has captured the interest of many businesses. Today, many businesses have a social media presence on popular platforms. Since consumers are available on social media, it would be wise to use it as a means to visibility. Companies can use social media to run advertisements – driving customers to their websites, informing the public about new product categories or interacting with consumers regarding purchases, conflicts, etc.
Ecommerce
Very relevant today is ecommerce, the buying and selling of goods and services over the internet.. Nowadays, some FMCGs sell directly to consumers online through websites , but a very important channel is through well known ecommerce platforms like Amazon, Alibaba or Walmart -and this has profound benefits to them, as online consumers now make up a significant percentage of total sales.
Regardless of the channels being used, the reach gained through ecommerce has the ability to help these companies stay sustained
Automation
Automation has the ability to reduce the time/effort required in performing an activity. In the past, many processes were handled manually and largely by humans – like sorting items, assembling and even accounting. Nowadays, automation can be implemented in many facets of a company from software to hardware. Hardware automations come in handy in production facilities for assembly and packaging – while software automations can be implored into finance, accounting, CRMs, route optimization in logistics, etc. These applications have a profound impact in increasing efficiency which is good for FMCGs.
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