For those in the fast-moving consumer goods (FMCG) industry, it is clear there is a huge shift ahead. While the global players once dominated the market, consumer and retailer changes have now allowed the smaller brands to compete and with power too. So, with a field ready for you to carve out your market share, what future trends do you need to keep in mind to ensure success in 2020?
The Future Trends Your FMCG Business Need To Consider For 2020
Try Before You Buy With AI
For all consumer goods, returns and reverse logistics are an expensive drain on profits which many firms are trying to reduce. While reverse logistics are less prominent for FMCG, it is still essential for brands to convince consumers that they are making the right choice with your product, so that they don’t have buyer’s remorse.
This is why consumers need to have the ability to try products before they buy them. In the past, this meant costly sample campaigns. However, for 2020 and beyond, it will be artificial intelligence (AI) that will allow consumers to experience your products before they commit to buying them. This is already happening with car manufacturers, who offer AI test drives, without a customer even needing to be in the car.
For cosmetic companies, for example, AI can offer a massive benefit as consumers will be able to experience the product before they part with their cash. With AI and virtual reality, customers can potentially see and feel what their product can do for them. This can be essential in picking the right tone or shade, for example.
AI has an incredibly fast growth rate, and soon it may be possible for AI to offer an experience for all of the senses. This can help all FMCG companies as it gives customers the chance to explore brands fully before purchasing the right product for their needs.
To be able to adopt this trend, having top AI talent in the team is essential. Often, AI is joined together with CIO and CTO responsibilities. However, due to the fast development rate of AI, a Chief AI Officer is required so that they can stay on top of the latest AI trends and find the best ways for the business to adopt AI. With a sole AI focus, it will be easier to reach cost savings and develop revenue streams through this impressive technology.
The Focus On Now
Delivery is now the primary focus of retail. However, customers cannot wait. They want their goods now. So much so that 88% of consumers will pay for fast or same-day shipping. Amazon is a clear example of the demand for immediate access to goods. In some areas, they are even able to airdrop goods within 30 minutes of ordering.
For your business to keep up, tightening your supply chain management and logistics become essential. However small or low cost the products are, there is a market there that is more than happy to pay more for fast convenience and now is the time to capitalise on it.
Again, ensuring the logistics department of your company is ready to implement dynamic changes for faster consumer delivery is vital. Sometimes, this needs to help of experts from other industries to bring tried and tested logistics strategies to ensure you remain a step ahead of the competitors in your own field.
Sadly, your product alone is not enough to ensure success. It is how expertly it is tailored to your clientele that makes all the difference. In order to personalise your products, you need data, and you need data specialists who can tap into this data to produce meaningful and actionable results.
The brands that target their products specifically to a segment of the market, or can tailor their product to the unique requirements of the consumer are thriving.
Personalisation is already having some success. For example, Coca Cola’s ‘Share A Coke’ marketing strategy of having names on their bottles was a great way to create a more meaningful connection with their consumers. Similarly, Nutella’s ‘Name A Jar’ campaign also brought personalisation to the forefront. However, being able to personally speak to your customers on a seemingly individual level could make all the difference in the future.
Advertising Is Dead?
Recent studies have found that up to 84% of millennials do not like advertising. So how can you reach customers without advertising? The answer is in influencers. The future trend for marketing FMCG is shifting from product-power to people-power. People cannot associate and resonate with products like they can with people. So focusing your marketing effort on the influencers that can connect with your target audience on a personal level will make all the difference in 2020 and beyond.
Already 89% of companies say that the ROI from influencer marketing is comparable or better than other channels. Furthermore, 30% of consumers say that they are likely to buy a product if a non-celebrity influencer recommended it.
Consequently, ensuring your marketing team is switched on to the world of identifying and securing the best influencers for your products and market may be your most important marketing tactic of 2020.