The Fast Moving Consumer Goods (FMCG) has had high historical growth rates over decades. Still, the industry has been facing tremendous pressure as digitalization and consumer behavior started to change in the late 2010s with “direct-to-consumer” products and ever-growing e-commerce. The ongoing global COVID-19 pandemic supercharged a migration that otherwise might have taken years.

The e-commerce deliveries in some markets have reached a pace of 10 years in about 8 weeks, while general e-commerce has grown two to five times faster than before the pandemic. Most Consumer Packaged Goods (CPG) markets have seen more than 10 percent growth in their online customer base during the pandemic. Even digital boom economies in Asia-Pacific like China and South Korea with high rates of online shopping before the pandemic see a further increase in online consumer spending.

Many consumers say they plan to continue shopping online even when brick-and-mortar stores reopen. A McKinsey research shows that in China and the United States, 75 percent or more of consumers reported trying a new shopping method, and at least 65 percent of them plan to stick with it post-crisis. A change that will stay and requires retailers and brand owners to adapt overthink their strategic positioning. While the emergence of more sustainable, eco-friendly products changes the market, we see a digital transformation overlaying the entire commerce and distribution process.

Retailers and manufacturers need to accommodate the consumer’s new behavior. Digital is revolutionizing how consumers learn about and engage with brand owners, e-commerce sellers, and retailers. This transformation has led to the significance of digitalization more than ever.