How Technology is Steering the FMCG Sector
According to ASSOCHAM report, by the year 2020 the FMCG market is expected to blow up to 104 Billion. Also, a report by Gartner suggested FMCG being the 4th largest sector in India. It is a paramount indication of top FMCG companies in India investing on the optimization of organized retail.
Digitization and automation are thus reimagining the traditional sales and distribution set-up of the FMCG market in India. Innovation has sat at the core of FMCG sector now since last few years. It is providing sumptuous magnification to several attributes of the industry. We have come long past the time when customer experience, analytics, store management, chain management etc. where seen as the biggest FMCG challenges.
It is inevitable not to ingrain technology and to stop the digital transformation in FMCG market. Confidently enough, it is only right to make that bold statement. As a known fact, the retail industry is heavily reliant on deep insight, study of customer behavior, change in market trends and preferences. Technology thus is sublimating the future of FMCG.
It has become a necessity for small and large scale business to thrive in harsh business scenarios. Technology is allowing corporate to surpass their challenges and emerge as leaders. Digitization and automation is revamping the whole process from the very core. For example the food companies in India are channeling great help in managing the sales and distribution chains. Governing customer experience, logistics, inventory management and with the advent of AI and machine learning, technology is about only inches short to mark its authority in the manufacturing territory.
Technologies like Big Data, predictive analysis, social media too are contributing high in the change of course. Customer behavior is now predicted close to accurate, with just cherry picking the buying behavior.
FMCG Digital Strategy
Regressively, the future of FMCG is mapped already on the technical algorithms. Starting from the year 2017, the investment on the technology is exponentially multiplied. From merely managing the supply chain, distribution channels, inventory, technology is making it certain for many businesses to consolidate their presence online. Websites, mobile applications, Enterprise mobility applications, CRM; technology is emerging as game-changer and a business enabler simultaneously.
For the big fishes of the FMCG market, new world technology is provider of dependable and precise R&D facilitation. Connecting the dots, there are hundreds of flag bearers because of the quality of customization and personalization of customer experience. Same can be said for chat bots, now more evolved and data-driven customer services is leveraged by consumers. Bypassing the casualties of a human-intelligence driven customer service team is easier now.
Sensing so much going on, it is believed that digitization has become an influential tool for branding and creating a fact-driven sale. Notably, heaps of useless data is now converted into meaningful business insight. Hence, improved sales, customer experience, business operations, B2B relations and distribution network are enjoyed by businesses.
Technology in FMCG is still a new concept. Industry is facing the crisis of investment. One of the major obstructions between the adaption of technology is the lack of funds to invest. Indian market is still repositioning itself in global territories with the complex tax structures, lack of organization and hefty competition from local and global vendors, it is apparently risqué for many companies to invest and expend on technology.
However, it is also, only for meantime. With technology gaining so much impetus, it is very likely that technology will find its way to the small players of FMCG industry that are finding it hard to convert today. There are many factors such as high disposal, growth in population, better economy; increment in consumption, change in market rotation that are likely to change their prospect for technology which is sadly right now seen as a big investment.
FMCG technology trends such as online services, enterprise mobility, analytics and logistics will truly triumph over the traditional ways and are considerately going to contribute into the growth of FMCG industry. Digital marketing and advance technologies are thus salvation for the smaller players that dream on to becoming the key players of the retail economy.