Decoding the impact of digital influence in FMCG

Abstract

Digitalisation is ubiquitous. New technologies are being combined with traditional methods of how to reach out to customers. Face recognition, eye tracking, augmented reality, algorithms analysing, and tracking consumer behaviour are all part now of modern-day life and are be used to personalize product offers by FMCG businesses or retailers. Nevertheless, Digitalisation is still in the early stages of development in many FMCG companies. Even wellknown brands are still at a crossroads of how they manage the interface with the customer.

Amidst the pandemic, the Indian economy has emerged as a vibrant economy and contributed immensely to global development. The country has evolved as one of the most attractive investment destinations with its expanding middle class, rapid industrialisation, and a shift in the demographic pattern. In our economy, sectors such as retail, Fast Moving Consumer Goods (FMCG), and e– commerce are consumer centric and can be the significant accelerators of the economy soon as consumer confidence enhances. The government is also framing policies and putting in place regulations to assist in mitigating the pandemic’s impact. While India is one of the world’s fastest-growing economy and has immense potential, it needs to promote participation and involvement of businesses to enhance the cause of nation-building and achieve the goals of inclusive growth and empowerment of the people.

The waves of the pandemic have rapidly evolved and transformed the way businesses and the industry operate, the way we operate as businesses, and overall, as an industry. Companies and brands across sectors, including FMCG and retail, have been affected in every aspect of the business. The crisis has also given us an opportunity to adapt to changing realities and meet consumer needs with unprecedented agility. The FMCG sector is well-positioned to rise to the challenge. In the past 18 months, technology adoption took place at a breakneck pace across the entire value chain; this would have taken several years in a pre-pandemic world. Companies have accelerated innovation across every business aspect − product development and marketing, manufacturing, retail, or strengthening the organizational culture in the new normal.

The crisis forced companies to significantly revamp their digital programmers and transition to the future of work, with work from home becoming the new normal. As a result, many organizations are redesigning work, and exploring newer workplace and workforce models. The hybrid workplace model (physical and remote) is gaining traction. Many organisations are gradually embracing a model where the office could be used as a collaboration zone rather than a pure workplace. COVID-19 also pushed the adoption of digital technology, enabling kirana stores/neighborhood mom-and-pop shops to adopt technology to expand their businesses. More kirana stores are going online providing app-based ordering and last mile delivery; offering a variety of payment options; and automating their bookkeeping, invoicing, and inventory management processes. The future of retail comprises digitally connected stores with customer data integration, real-time inventory management, mobile POS, and store operations.