The future of consumption: 5 FMCG trends
As enthusiasts for the FMCG industry, we at 4brands Reply continuously strive to keep up with the current trends and changes in the industry. On the one hand, the rapidly changing consumer preferences challenge companies, on the other hand, they offer many new opportunities. Let’s take a closer look at the trends that are currently influencing the consumer goods industry and how smart solutions are enhancing new potentials.
Effectively addressing social commerce and e-commerce with data lakes
Social media has triggered radical changes in many industries. The way people communicate and share information creates direct and fast connections between them, which have an impact on the consumer goods market. Products can be recommended to others and bought in seconds by a simple click. Today, there is an expectation for consumer goods manufacturers to offer their products online and provide consumers with an alternative to stationary retail.
With the rise of social commerce and e-commerce, another important need has become apparent: Data Lakes. This comprehensive data storage solution, allows companies to collect, store and analyse large amounts of structured and unstructured data from various sources. By integrating social media data, e-commerce transaction data and other relevant information into a data lake, companies can develop a deep understanding of their customers’ needs and wants. This data can be used to personalise offers, optimise marketing strategies and identify trends and patterns that drive sales and customer satisfaction.
The price is a key factor for sustainability
Consumers are increasingly aware of the environmental impact of conventional consumer products. However, an overwhelming majority is not willing to pay more for sustainable products. Consumers are in a trade-off between the desire for sustainability and price sensitivity.
This creates a challenge for companies in the consumer goods industry to offer sustainable products that are affordable for the mass market. One option for companies is to optimise their production and supply chains in order to save costs and thus offer sustainable products at a lower price. This can be done, for example, through the use of efficient technologies. Furthermore, targeted uplifts of sustainable products can be achieved through data-driven trade promotion management.
DIGITAL SHELF ANALYTICS IMPROVES THE ONLINE MERCHANDISING
As we’ve learned, the importance of online commerce has grown significantly, leading consumer goods companies to collect and analyze their product and sales data from multiple sources. Digital Shelf Analytics (DSA) are a powerful tool to monitor product placement and online merchandising in real time to optimize online presence.
The first key value-add of digital shelf analytics is its ability to deliver comprehensive insights into online shelf presence. Consumer goods companies can learn what products are available and how they are positioned relative to their competition. In addition, DSAs enable precise tracking of product performance. Consumer goods manufacturers can see exactly how sales, conversion rates and other key metrics are evolving over time. This enables them to respond quickly to changes in customer behavior and adjust their online strategies accordingly.
A resistant supply chain is essential
In recent years, disturbances and interruptions in supply chains have led to significant sales losses, as bottlenecks and delays result in lost sales. Competitive pressures for consumer goods manufacturers are increasing, as consumers substitute, switch to other branded items or resort to white label products when products are unavailable.
To prevent this, planning solutions use advanced algorithms and data analytics to accurately forecast demand. This enables accurate planning of orders, inventory levels and deliveries. Reporting tools continuously monitor supply chain performance so bottlenecks and shortages can be identified early and the appropriate action can be taken. In addition, supplier collaboration systems provide manufacturers with real-time information on delivery status and other relevant data. An alert system creates faster response to changes in the supply chain.
Customers have high quality expectations
Customer satisfaction plays a crucial role in the success of a company. Identifying customer expectations leads to the effective development of new strategies to increase customer satisfaction. Customer expectation for consistent product features is constantly increasing. Consumer goods manufacturers must produce the required quality with raw materials that vary in quality, origin and season. In addition to the demand for constant product characteristics, consumers also pay attention to the protection of human rights.
More transparency is to be offered to consumers through the Supply Chain Sourcing Obligations Act. The resulting additional workload on the part of manufacturers can be systematically intercepted by reporting tools. Consistent product quality and compliance with ethical standards are not only consumer expectations, but also social obligations. Implementing efficient reporting tools enables consumer goods manufacturers to meet these requirements in their supply chains while increasing customer satisfaction. By creating transparency in the supply chain, companies can gain consumer trust and ensure long-term success.
In summary, the FMCG industry is in a period of change and innovation. This challenges consumer goods manufacturers to remain competitive and meet consumer expectations. At 4brands Reply, our ambition is to master the pain points of digital transformation with our solutions and ideas.
If you would like to learn more about our innovative approaches, please feel free to visit our website: https://www.reply.com/4brands-reply/de/ or contact us for more information. We look forward to succeeding with you in this fast moving industry.