Perspectives: 3 Things Big FMCG Marketers Need to Do to Win Again
Unless you’ve been hiding under a rock for the last couple of years, you’ve probably heard that the fast-moving consumer goods (FMCG) industry is in the midst of a major upheaval. You’ve probably also caught FMCG pundits talk incessantly about the meteoric rise of Amazon, applaud the advent of new business models like subscription services and meal-kit deliveries, pronounce the death of brands as we know them, and flinch about the shake down in brick-and-mortar retail. Needless to say, we’re seeing the industry transform right in front of our eyes. That’s scary, but equally exciting.
This change has so far not been pretty for big FMCG players who have not only struggled to adapt to this “new world order”, but also deliver on their financial commitments to stakeholders. At the same time, smaller, regional, niche FMCG players have flourished, as the cost of entry and consumer preferences have shifted in their favor. It’s certainly not easy to fathom how some of the largest FMCG manufacturers (with deep pockets, strong talent, seemingly unlimited scale and diversified global presence) would seem to be floundering at a time when you’d expect them to be leading from the front. Why is this? While this is a deep-rooted question with several layers of nuances to unpack, I’d like to argue that the simplest explanation here is that they are still much more focused on the outputs (winning share or hacking one additional point of growth) than the inputs (“How do I rewire my business to stay relevant and win in this new world?”). Nielsen – Read more…
This change has so far not been pretty for big FMCG players who have not only struggled to adapt to this “new world order”, but also deliver on their financial commitments to stakeholders. At the same time, smaller, regional, niche FMCG players have flourished, as the cost of entry and consumer preferences have shifted in their favor. It’s certainly not easy to fathom how some of the largest FMCG manufacturers (with deep pockets, strong talent, seemingly unlimited scale and diversified global presence) would seem to be floundering at a time when you’d expect them to be leading from the front. Why is this? While this is a deep-rooted question with several layers of nuances to unpack, I’d like to argue that the simplest explanation here is that they are still much more focused on the outputs (winning share or hacking one additional point of growth) than the inputs (“How do I rewire my business to stay relevant and win in this new world?”). Nielsen – Read more…
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