Digital Marketing Services Coimbatore
Digital Marketing – A solution for challenges faced by Retail/FMCG industry
Retail/FMCG Market:
Let’s first take a peek in to what an FMCG market it and how it works. Fast moving consumer goods (FMCG as the name indicates are goods that sell quickly and a comparatively low cost This include processed food, packed food, baked products, medicines, cleaning products etc. We have seen a drastic increase of ecommerce from this industry since 2018. The need for online availability of these products has increased rapidly and many companies have created an environment to enable consumers worldwide access their products online. That said, this leverages to various other challenges that FMCG market is facing.
Challenges that FMCG companies are facing today:
Retail Execution:
There are several hindrances that a retail market faced before executing. In fact, most FMCG companies loses more than 20% of sales opportunity and is forced to remove products from retail due to these execution issues
Growing ecommerce:
During and post pandemic situations, ecommerce has become very vital, especially FMCG. This period has enabled many entrepreneurs rise to this market facing all challenges including the challenge of managing logistics. Also, the need of every other product online has become the need of the day. This made it difficult for all the distributors to manage orders coming from different channels, maintain stocks and manage the delivery of good via a local delivery partner.
Big Data:
Increase in online business there by increases the data movement online. Consumer data is rapidly increases so that acquiring, storing and processing data is needed to be improved exponentially. Tracking of Brand, weekly consumer sales, shopper data from friendly and well-compensated retailers, are few metrics that are already being tracked in the FMCG world, depending on which data/analytics organization you are working with. Smarter companies purchase only relevant data and effectively make use of this data to find buying patterns to develop sites and communicate with consumers effectively.
The Internet of Things:
Social media took is the fastest method to reach consumers across global. Consumer information is easily available on Good search today despite several regulations in place. Smarter brands will use innovative methods to effectively use this to reach audience worldwide while limiting brand communication costs.
Sustainability:
Sustainability is one factor that needs key attention in case of any business be it online or offline. Retaining client and brand sustainability is a main challenge in grounds of an FMCG industry. This still remains a challenge in today’s world. The creator of innovations and technologies to address this challenge is long been awaited.
Ageing of brand:
It is often challenging to keep up cool enough to attract younger consumer groups while being able to match up with the demographic age of the availability of the local consumables.
How to overcome these challenges?
It becomes essential for a FMCG company representative to carefully pick the option to face each of these challenging in execution their strategy.
- Digitization
- Mass Personalization
- Multichannel Sales equality
- Promotion customization
- Quality Control
- Dynamic Business Model
1. Digitization:
Digitization is one profound solution for an FMCG company where all departments right from R&D to distribution gets impacted. Some of the cutting-edge technologies that will transform FMCG research departments, factories, warehouses, and stores while improving customer experience and engagement are AI, data analytics, IoT, robotics, machine learning, RPA, and additive manufacturing. These will optimize internal process and improve client intimacy by capturing customer data to provide the best solution.
2. Mass Personalization:
There is eventually going to be a huge structural shift in moving the mass production to mass personalization. Most of the sales percent in FMCG are personal care, skin case and hair care products. The mode of customization is changing the industrial norms. Personalization is a huge challenge for traditional FMCG companies. Customized products need to focus on sourcing, supply chain management, real-time production, packaging, distribution, marketing, and sales.
3. Multichannel sales equality:
There has to be a mode ‘Multichannel Equality’ created to make up to the pricing, promotions and discounts offered to their customers to make sure that the consumers do not perceive inconsistency of a product based on purchase channel or area. Any promotion, pricing, discount mentioned in one channel should be consistent over others as well.
4. Promotion Customization:
5. Quality Control:
Bad quality of products that are sold significantly brings down the revenue soon in case of an online market. This can be overcome by a thorough examination of products in lined for sale. Business Intelligence helps in getting the root cause of poor quality done at a desirable rate. BI systems helps in detecting patterns and predict failure and there by identifying areas of repair/restructure and
helps in ensuring the quality of unfinished products.
6. Dynamic business model:
This highly growing market with multi-channel sales and multiple delivery models to handle the demand, technology savvy customers, FMCG industry is forced to try innovative ways to face this demand. Using analytics, they can identify the best strategy and solution to run their business. Having a dynamic model of business and delivery they are enabled to meet the sales at low costs.
Taking all of this into account in digital marketing grounds, any FMCG company can face the demand and needs in the upcoming decades.