What Enables FMCG Digital Transformation

What can you say about FMCG Digital Transformation? Well, digital technology now disrupts the FMCG industry (Fast Moving Consumer Goods). It even evolves the customer’s behavior and expectations. So, how does digital technology enables transformation in the FMCG industry?

The Disruption By ECommerce

Online retail started in some form in the 1960s. But it now disrupts the retail and FMCG industries following the improvements in access to the internet. As well as Amazon’s competitive business model.

Also, we can now see the steady growth of smartphone usage. As well as digital payments, banking, and platforms. Thus, online retail is now becoming mainstream. So, what’s the impact of this on the FMCG industry?

A Change In The Marketing Strategy

They have to continue with the traditional strategy for those in-store customers. But they have to reach out to a wider base of consumers who do online shopping.

And because of that, they have to invest in digital marketing strategies. And that may include personalized campaigns and presence in social media and online forums. Even the packaging for in-store and online products needs to be different for other products.

Increasing Competition

You can reach a wider audience online. But this also means tougher competition. Your brands may be competing with local and global brands from other countries. Especially if you’re using the same online platforms.

Moreover, you may be competing not only for the price. But also on delivery services and better customer feedback.

Increasing Complexity Of The Supply Chain

An FMCG can no longer depend solely on trucks for delivering products to stores at a fixed time of day. They have to be aware always of seasonality and spikes. This might mean that their supply chain operations will become much more complicated.

Also, they have to spend more on logistics and transportation. And not to mention the need to handle a larger volume of data.

The Changing Customer Profile

FMCG industry’s profile changes. This is to address the needs of younger customers who want to do shopping online. It also includes consumers in newer markets through eCommerce platforms.

Moreover, they also need to cater to consumers who are conscious about product quality, the environment, and ethics.

Using Technology As The Enabler For Transformation

Digital Marketing

Digital marketing includes many aspects. Examples are search engine marketing, video marketing, social media activity, and email marketing.

Additionally, digital marketing is most effective with a targeted group of customers. And also if organizations can identify digital or social champions.


For tracking and tracing functionalities and operational efficiency, FMCG companies now invest in Blockchain and digital ledger technologies. This does not only helps manage the supply chain better. But also helps build trust in a brand.

It helps in compliance management. It also reduces the need for middlemen. And what’s more, it helps for easier handling of cross-border transactions and brings about end-to-end accountability.

Artificial Intelligence

AI brings a lot of benefits to FMCG companies. It enables companies to discover gaps and make their processes intelligent.

This could include demand forecasting and supply chain optimization. As well as personalized product offerings, social media analytics, consumer sentiment analytics, and recommendation engines.

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