“The global FMCG market is projected to reach $15,361.8 billion by 2025, registering a CAGR of 5.4% from 2018 to 2025”
Source: Allied Market Research
Consumer goods form the fundamental base of a large portion of global business. Fast Moving Consumer Goods (FMCG) focus on the fast rate at which the good are sold to the customer. The FMCG market is growing exponentially and with the pandemic troubling us all, the global trends have offered increasing importance to this industry. The path of the pandemic has been affecting the consumer goods industry trends in the coming year. As we are set to welcome 2021, the FMCG companies are showing great momentum and agility.
Before we plunge into what these trends portray, let us understand the FMCG industry, in brief.
The FMCG Industry – An Overview
What is FMCG?
Fast Moving Consumer Goods are those customer focused goods that can be purchased at a low cost and are consumed at a rapid pace. FMCG sector includes product types like food and beverages, personal care, footwear, apparels, household, cleansing etc. This industry showcases a faster rotation of goods and hence it has an agile business.
These goods are available at different distribution outlets like superstores, supermarkets, speciality stores, hypermarkets, grocery stores, warehouses or online through eCommerce. Being an essential commodity area, the FMCG industry has been experiencing a lot of growth in different areas. Customers are finding it easy, interesting, and advantageous to garner a shopping experience – online or physical.
Market Segments:
- Food & Beverages
- Personal Care
- Healthcare
- Homecare
Key Attributes:
- Understanding the competitive edge of the business market
- The high volume of goods with lower shelf life and lower prices
- Broad and controlled distribution with high inventory turnover
- Regular purchase by customers and inventory distribution
- Managing availability and visibility
Top FMCG Industry Trends For 2021
- Increased Implementation of Sales Force Automation
- Consumer-Driven Approach, Flexibility, Convenience, Preference
- Personalization and Predicting Choices is the Future
- Technology and eCommerce Will Be the Backbone of FMCG organizations
- Artificial Intelligence Will Promise a Digital Revolution
- Ordering Through Commuting and Voice Assistance
- Big Data Analytics Will Empower FMCG Organizations
- Direct-to-Consumer Delivery Will Take Priority
Increased Implementation of Sales Force Automation
Sales Force Automation systems have been offering a great deal of support and benefits to many industries, FMCG primarily being one of them. Since FMCG is a happening industry and because of the pandemic, this year has shown a great deal of growth in its activities, an ideal salesforce marketing automation solution will prove to be highly effective.
The year to come shall see the increased implementation of SFA solutions with answers to details like stores to be visited, promotions/deals in stores, organization of shelves, product-wise distributor list, the timeline for FMCG products to reach the store, sales history, etc.
Consumer-Driven Approach, Flexibility, Convenience, Preference
This year has seen more focus on what the consumer wants. The pandemic has forced us all to lead the new normal which has brought around many changes in the way the industries operate. The FMCG industry is witnessing changes in terms of customer needs, preferences, and approach.
The year to come shall see the FMCG industry operate keeping in mind different facets of what the consumer is looking for – their convenience, approach, needs, flexibility, etc. There are customers who are wanting to operate in different ways especially with them staying more in their home premises. Hence, the industry must mold itself and inculcate methods by which it can satisfy consumers to their best. There has been an increase in restaurant delivery apps like Uber Eats, Zomato, etc. Even home delivery of fast-moving goods has become a preferred choice for all those who prefer not to move out much. Retailers and distributors are having to change their way of working to incorporate the new normal.
Consumers are giving priority to health-based products and hence the FMCG industry is concentrating more on such items that can offer healthy products to consumers, with the convenience of their homes. The nutritional value of products is being ascertained and hence the demand graph is going high. Even the menu items are being altered to fit in a good blend of nutrition + taste + reasonable pricing.
Even awareness of ingredients of products is becoming more important and consumers are quite strict about that now. The industry is getting increasingly competent to adapt to better ways of satisfying their customers and making them believe in the ingenuity of the products.
Personalization And Predicting Choices Is The Future
Offering multiple choices to customers has been trending in this year – be it home delivery, take away, shopping from outlets; be it restaurants, groceries anything. But it is the customer’s world and there is no looking back for them. The new-age customer is wanting more, they expect the retailers to predict what the customers will need, when and how will they expect the items to be delivered.
It is like moving a step further and virtually trying to read the consumer’s mind. The new year shall see implementation of a modern-day thought process that will bring a FMCG industry to a different level.
Technology and eCommerce Will Be the Backbone of FMCG organizations
Looking at the increasing digitization wave, technology will be primarily holding the front for FMCG business. Different ways and means of technological equipment/solutions like AI, AR, VR will be leveraged for getting effective business results. Smartphones and mobile devices will act as faces to the technologies supporting the industry.
Looking at the pandemic situation, business owners will leverage technological support and eCommerce to reach their business goals. They may need to include newer ways to adapt to technological growth but that is the only way out, to keep their business flowing and growing. The year shall see changing customer trends to which FMCG organizations will have to respond through newer ways and means of eCommerce way of working. Going a step ahead, it will be more towards mobile commerce (mCommerce) rather than just eCommerce.
Artificial Intelligence Will Promise A Digital Revolution
There is barely any industry which has not yet tasted the success of AI into their business. The FMCG industry has begun to enjoy the goodness of implementing AI into their activities. The coming year shall see more of AI into FMCG organizations. Be it offering personalized experiences, real-life outputs, data-driven business etc., AI will promise increased returns for all – the business owners and the consumers.
AI will lessen the human intervention at all places, replacing it by machines, robots and chatbots. ML clubbed with AI will implement various algorithms that will offer great results like virtual fitting areas, visual searches, virtual menu displays, logistics, prediction of consumer trends etc.
Ordering Through Commuting and Voice Assistance Are the In Thing
Voice assistance is a part and parcel of the newer set of smartphones. Customers prefer to order through voice assistants and while commuting. Looking at the need of the hour, people want to avoid waiting at outlets and simply want to pick up their parcels and leave, to avoid exposure to crowded places.
Technologies like Amazon Alexa are helping customers place their orders, while they are on the move and simply pick them up from the outlets. Even online payments are becoming easier with an increasing number of secure and flexible payment mediums.
Big Data Analytics Will Empower FMCG Organizations With Detailed Insights
With so much happening around the world, the need to detailed analytics is on a rise. Big Data comes to the rescue for offering in-depth analytics from the huge bulk of data that is generated by the FMCG companies. Detailed analytics also helps these organizations in understanding customer patterns, predicting futuristic trends and observing the way business operates.
Different models based on the data analytics are being worked upon in the industry and the new year shall see increased usage of Big Data to garner effective and profitable business. It becomes easy for business owners to run promotions, campaign, marketing activities with analysed and structured data.
Direct-to-Consumer Delivery Will Take Priority
Amidst the various ways of running the FMCG business, the model of direct-to-consumer is gaining momentum. This market is supposed to increase multi-fold in the coming year. Consumers have started purchasing directly from the FMCG manufacturer instead of routing it through retail giants.
It still is in its nascent stage but is picking up pace. It is tough to judge the grown rate of this model, but it surely will have its presence felt in the coming year.
On a Final Note
As we enjoy the onset of 2021, the direct impact on consumer behavior, digitization will continue to upsurge. With the pandemic having an upper hand, demand-oriented supply will be more in demand and consumers will be the ones ruling the FMCG industry.
At such times, the new year shall see Sales force automation setting out to make work and workflows simpler to follow and tightly coupled with each other to augment the productivity of the sales teams to provide a rewarding experience to the FMCG companies. The FMCG industry shall enjoy the benefits of technology rewarding the industry with multifaceted solutions.
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