Fast Moving Consumer Goods industry is saled to grow at a CAGR close to 10% per year from 2016 to 2020 due to new product developpment at a faster pace. Here are the new market trends that the companies need to take a closer look to grow at a faster pace in the era of hyper competition and disruptions.
1. Big Data Analytics: Data mining explosion has started is underway as internet penetration is increasing at the rate of noughts. Ability to mine, store and process data continues has given further boast to this irreversible trend. The explosion of social media generated through mobile applications and search engines has made delivering meaningful insights easy. Brand tracking, consumer panels, shopper data from retailers where the data is being generated is easily accessible. The smarter organisations can buy relevant data, deduce the correct linkages to consumer behaviour and use it effectively to develop products to garner competitive advantage.
2. Social media: Information can be easily obtained from Twitter, Facebook, Google Analytics and YouTube video and in real time. This has given the consumer the real king. The brands that want to go global can access the consumer behaviour data with ease. Smarter brands can use this effectively to reach globally while limiting marketing costs.
3. Online grocery shopping: Growing rapidly in most developed markets most major brick and mortar retailers are now offering online shopping and this delivery is giving rise to smaller online retailers. Most modern developed market retailers carry anything from 20,000 to 30,000 SKUs.
4. Environment benefits: Larger manufacturers are trying to create separate brands and business units to capture the green consumer and enhancing their brand image.
5. Merging Manufacturing: The mega factories open across Asia’s cost of production will continue to come down due to massive economies of scale helped with free trade zones and agreements. Outsourcing is making a mega unit optimise the sourcing of raw materials and find bigger markets.