Consumer Goods & RetailDigitalization in FMCG & Smarter Products for Consumer Engagement & Traceability
The great consumer migration: over 60 percent of global consumers have changed shopping behavior
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.
A billion new consumers and they want to buy online
Digitalization of FMCG products is crucial to prepare for the growth of emerging markets that will continue in the coming years to outstrip that of the developed world by a wide margin. While the emerging countries in Asia already had a significant share of global growth (18 percent) throughout the last decade, this growth share is expected to increase to nearly 30 percent in the next decade. As a result, the global middle class will expand dramatically: by 2020, there are expected to be more than 1 billion new consumers spending between $10 and $100 per day.
Understanding these new consumers and meeting their needs will be no simple matter. Those who get it right stand to earn tremendous competitive advantage. Digitalizing products on a single-item level will enable companies to interact with the consumer directly, segmenting the billion new consumers and innovating to meet their needs, while meeting the ever increasing expectations of authentication of quality and safety standards.
Benefits with Asynos' Fullstack Solution for Consumer Goods
Holistic solution partner to digitalize FMCG products on a single-item level that enables traceability and tracking from production, retail, and all the way to the end consumer. Our B2B2C-service focuses on cost savings along the supply chain and value creation with direct data exchange with end consumer:
- Digitalization of single-item products that boost companies’ capabilities to meet higher customer expectations
- Sensor-driven tracking solution for quality and safety authentication
- Informative supply chain that enables higher efficiencies and data-driven decisions to prepare capacity of growing market
- Digital fulfillment and customer-support capacity for increased demand
- Omnichannel stock management and optimized overall stock positioning
- Digitalized products that facilitate automatic replenishment towards both retail and end-consumer