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Undoubtedly industries are made to evolve. However, the FMCG industry is advancing at an exponential rate, and consumer behavior in this industry particularly is more dynamic. Let us help you understand with some stats.
Acxiom reveals that 56% of customers are most likely to repurchase from a company if they receive personalized loyalty rewards and programs.
As per the current market scenario, a handful of brands are constantly stepping up exponentially in growth while some are still struggling to crack the code of winning consumers' hearts. How did they do that? We studied the latest GTM strategies of top brands, and we’ve noticed a commonality. Guess what? They have mastered providing a personalized experience to their audience.
Have you heard about Britannia and Parle’s consumer engagement program? How did they decode this mantra? Today we will dig deep into the challenges and will explore blue sky solutions to move the needle.
Over time, competition has increased and so requires tactics and strategies to keep the consumers engaged and retained with your brand. Now, consumers are discerning and increasingly demanding transparency about their products' ingredients, manufacturing & expiry date, and more. We’ve listed some of the core challenges confronted by almost every FMCG player. We’ll explore both the challenges and solutions in this blog. Ready?
Fight for the Shelf
Ever noticed how some products just seem to jump off the shelves at you? How does it happen? Brands are constantly vying for prime positions to catch consumers’ eye. The competition for shelf space in retail stores is fiercer than ever. This battle for visibility can determine a product's success or failure.
Companies use strategies ranging from eye-catching packaging to strategic retailer partnerships to stand out. But in a crowded marketplace, maintaining visibility and driving sales is a relentless challenge.
Imagine the situation of your product being sold in a different region from where it must be. This is not just an imaginary situation but many brands are actually facing this issue. Is your brand also struggling with the same?
Traceability is essential for ensuring product safety, quality, and compliance. However, maintaining a transparent supply chain can be tough. Complex logistics and numerous intermediaries make tracking products from origin to shelf a daunting task. Brands need reliable systems to ensure every step of the journey is visible and verifiable. Agree?
What keeps you coming back to your favorite brand? To retain consumers and foster loyalty, FMCG companies deploy tactics like discounts, cashback offers, and loyalty programs. These strategies are designed to enhance consumer satisfaction and encourage repeat purchases. However many brands are still finding it difficult to retain their customers. Let’s have a look at what experts say:
Increasing customer retention rates by 5% can increase profits by 25-95%. These highlight the potential financial benefits of improving customer retention.
Now imagine the loss that brands suffer from on an almost daily basis due to this retention issue.
In an age where data is king if your brand can offer personalized recommendations to your consumers, no doubt! you can capture the entire market easily. Many FMCG companies face challenges in gathering and utilizing consumer insights effectively. This lack of data hampers their ability to retarget and remarket products efficiently, make data-driven managerial decisions, plan production activities, identify top-performing regions, and most-demanded products, personalization, and more.
Personalization is probably the most powerful tool that not only triggers emotions but also makes a personal connection with the consumers. This is what most of the brands are missing in the FMCG industry due to a lack of data!
An unorganized retail network can throw a wrench in the supply chain, disrupting product availability. Retailers are the true sales team of a brand and if the brand is not taking the necessary steps to engage them it will become hard to achieve exponential growth.
The “Unorganised Retail Sector”, represents approximately 81% of the total retail industry. Just assume how cumbersome the situation is. If brands find it difficult to keep track of their retailers, how will they make personal connections with them? You may find it disturbing but this is what most FMCG brands are going through.
Counterfeiting is a serious issue that damages brand integrity and consumer trust. Many brands have started taking stern action in the direction of anti-counterfeiting of products but numerous obstacles are still to be conquered in the FMCG industry.
According to Retail Dive, more than 60% of consumers lose trust in a brand after unwittingly purchasing fakes.
60% is not a small number. You’re probably losing them due to the counterfeited products. This is the perfect time to make effective decisions now!
After our in-depth research, we can conclude that the top brands that we were talking about earlier had some similarities in their tactics and strategies. All those brands have not just adopted but created the trends in the industry. We’ve listed the trends and solutions here. Come have a look:
Brands are now strengthening the backbone of their operations: the retailers. Previously, benefits were offered through Quantity Purchase Schemes (QPS), but due to limited visibility, retailers often missed out on these advantages. Without scheme automation, how can retailers stay motivated to promote your products and attract consumers?
Loyalty automation has revolutionized this landscape by ensuring schemes are directly visible to retailers. Did you know that a recent study by Gartner found automated loyalty programs increase retailer engagement by 40%? With transparent schemes, retailers are more inclined to feature products prominently and boost sales.
Are you familiar with how Rewardify - India's fastest-growing QR code-based retailer loyalty program is leading the way? This innovative approach empowers retailers to fully access and benefit from QPS and other incentives, ensuring they remain motivated and engaged in promoting the brand through innovative Gamification techniques. Rewardify does not only empower retailers but brands also with retailers' data which they use for providing a personalized user experience and real-time product movement.
Digital technologies are transforming the FMCG industry, 85% of urban consumers shop for their daily essentials online only. Companies are leveraging digital tools to streamline operations, enhance consumer interactions, and drive sales. From e-commerce platforms to digital marketing strategies, technology integration is reshaping how FMCG companies operate and compete.
Here’s where an innovative solution, Scan&Win comes into the picture that combines all these nasty challenges and trends to meet the dynamic demands of the FMCG industry. Let’s know how.
Scan&Win allows consumers to shop and win some instant rewards inculcating instant gratification, supporting consumer data capturing, and gamification elements boosting consumer engagement. Many brands adopted this innovative solution to get a competitive advantage over their competitors.
Did you hear about the recent controversies in which brands have been found guilty of adding hazardous content to edibles? This is another case proving that traceability is a must in the food chain. Nowadays, consumers are becoming more conscious of where the raw materials come from, the ingredients used, the health benefits, etc.
Brands these days are facing a crucial issue of traceability. Due to this, brands are not able to track which products are being sold in which region, which region is performing well hence hotspot, and which region is not: coldspot. Don’t you think it is hampering your brand’s growth?
SupplyBeam empowered many brands with solutions that eliminate this issue. Must be thinking how? It helps brands keep track of the product movement from the plant to the last consumers on a real-time basis, optimizing the supply chain operations.
According to CRISIL and ASPA reports counterfeiting does massive damage to the FMCG with 28%. This issue is bigger than it seems, every year many FMCG brands are losing a big percentage of their profit due to counterfeit products. Product counterfeiting casts a shadow over the FMCG industry, with estimates suggesting a staggering $1.3 trillion lost globally each year (PWC report). These fakes not only damage brand equity but also pose safety risks to consumers.
Imagine the fallout: a counterfeit product tarnishes your reputation or even harms a customer. By taking significant steps towards anti-counterfeiting some brands are constantly improving their brand image and revenue by leveraging GenuineMark.
What does it get your brand? Easy check over authenticity by leveraging QR-code technology, infiltration track through geo-fencing, consumer data, and more.
It is high time to adopt these trends. No?
Let Genefied help your brand grow exponentially. Hurry up! Capture the market just like top brands. Why delay? Reach out today!
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