Fast Moving Consumer Goods: Current Trends and Predictions
As the world rapidly transitioned into a highly digitalised space due to Covid-19, the Fast Moving Consumer Goods (FMCG) industry has gone through a drastic transformation over the past 18 months.
There are seven major consumer drivers that are causing an innovative makeover in the FMCG industry. These consist of:
Convenience - accessibility in the comfort of their own home, anywhere at any anytime on any device.
Distinction - what makes a brand or product different from the rest?
Health consciousness – more people are actively seeking healthier choices
Simplicity - is the product or service user friendly?
Variety – Different products targeting different needs and preferences
Sustainability – eco-friendly products that limit harmful waste
Ethics – customers want brands that they can trust
In Asia specifically, the ‘new normal’ after Covid recovery for FMCG are:
Increased price sensitivity – with the economy still in recovery, more customers will be re-thinking their purchase decisions to make sure it fits within their means. With so many similar products or services on the market, consumers can make comparisons on functionalities and select the product that costs less but meets their performance criteria.
Higher digital engagement – it goes without saying that digital technology has been key in tackling the challenges of the pandemic and with most consumers staying at home, digital engagement is at an all-time high.
Rise in attention to wellness and hygiene – heightened awareness of one’s health and hygiene has been prominent throughout the pandemic and products that target these concerns have boomed over the past 18 months.
‘Nesting’ at home – while this may not be permanent, many people are still concerned about social distancing and will opt to stay at home rather than visiting crowded places.
A redefinition of brand purpose – customers want a brand that they trust and believe in. Creating an authentic brand purpose that is inspiring, relatable, and impactful to your organisation and is reflective of the day-to-day processes will be key in driving sales and revenue.
What are the major global changes that will occur around these driving factors?
Continued growth of e-commerce and leveraging technology
With a large majority of customers turning to online shopping, the demands in consumer expectations have evolved. The growth and transformation in e-Commerce has been exponential as the focus has shifted to convenience and technology has been an integral driving force to accommodate user demands and needs. These will only continue to grow as people have become used to these fast and accessible solutions.
More ‘affordable luxury’ products
To attract more consumers and increase revenue, more companies are changing the way they brand expensive but attainable products as affordable luxury. While the purpose is not to replace ‘true luxury’, brands may introduce selected products at more affordable price points or introduce a new line of products that are specifically marketed as entry-level luxury or splurge-worthy.
Enhanced customer experiences
Accessibility of information to the consumers have reached new heights and customers are increasingly looking for enhanced experiences before committing to a product. Digital technology has played a massive role in the past 5 years in shaping the customer experience and companies will continue to focus on leveraging technology to create seamless, personalised experiences to bring a sense of emotional connection, comfort and convenience to the customer.
Becoming more branding conscious
This speaks to ethics, sustainability, variety, and health consciousness. Largely driven by accessible information, media and social influences, consumers are more aware of themselves and the world around them. People want to be healthier, are more aware of environmental issues and ethical practices. This means that more brands are updating their practices and products to cater to the growing needs of their customers
- By Erica Genda
- almost 2 years ago
- In this blog
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