Unveiling the secrets of FMCG success: Harnessing data-driven sales predictions in an ever-changing consumer environment
The FMCG market has experienced substantial global growth over a significantly long period, by 2010, the industry had created 23 of the world’s top 100 brands and had grown total return to shareholders (TRS) almost 15 percent a year for 45 years—performance second only to the materials industry. However, its trends are constantly evolving due to dynamic consumer behaviour. The field of FMCG analytics is revolutionizing data operations within organizations and the focus from Product is now shifting rapidly towards Consumers.
The ever-evolving consumer landscape, shaped by notable occurrences like the Covid-19 pandemic, the Ukraine war, and subsequent Russian sanctions, along with the spectre of inflation, has brought about a remarkable transformation in how consumers engage in the buying process.
These changes are far from uniform, exhibiting systematic disparities across regions and countries, as well as within product categories, effectively distinguishing between essential and non-essential goods. Particularly vulnerable are countries heavily reliant on energy and oil supplies, as they bear the brunt of substantial retail price increases.
Brands face a decisive moment around pricing. Ultimately, success will lie in better understanding category shoppers and making mindful pricing decisions. Now more than ever, it’s crucial to get consumer input before making any price changes.