Pain Points being experienced in the FMCG Industry today. 

What are the pain points being experienced in the Fast-Moving Consumer Goods (FMCG) Industry today and what is the relevance to your business development plan?

Why are industry pain points relevant to business development planning?

We at WiRD have found that it is important to understand an industries market related pain points before starting to develop our business development plan. By doing this we are able to focus our business development plan on any opportunities presented by these pain points as well as look for opportunities to differentiate our products and services in a way that is meaningful to our clients in these markets. 

But first let’s agree what we mean by the FMCG market. FMCG markets are typically characterised by products that are sold in grocery stores and other retail outlets. They tend to have products with a short shelf life and high demand. 

The FMCG market is therefore a highly competitive market. There are many brands competing for a share of the consumer’s attention. This is especially true in the digital marketplace, where consumers have access to a wider range of products and information than ever before. FMCG brands therefore need to be able to adapt to the changing ways that consumers are shopping. This means having a strong online presence and using digital marketing to reach consumers. It also means being able to collect and analyse data about customer behavior in order to improve marketing campaigns and product offerings.

The general consensus in the market is that the FMCG market will most likely continue to grow in the coming years. This is as a result of a number of factors, including population growth, rising incomes, and increasing urbanisation.

This week we look at FMCG market related pain points.

What are FMCG Industry pain points?

At WiRD, we understand FMCG pain points to be the challenges that FMCG companies face in their day-to-day operations. These pain points can be related to competition, customer expectations, regulation, compliance, or technology.

Why are pain points relevant to business development planning?

WiRD’s view is that an industry’s pain points are relevant to business development planning because they can help organisations identify opportunities for growth. By understanding the pain points that their customers are facing, organisations can develop solutions that address those pain points and attract new customers.

Understanding the FMCG Industry Pain Points evident in today’s FMCG Markets

We list below the FMCG Industry Pain Points that WiRD encounters when working with our national and international FMCG clients. They represent the most prevalent pain points we encounter and are therefore are not meant to be a comprehensive list of all FMCG paint points. 

These pain points can make it difficult for FMCG companies to stay profitable and grow their business. However, FMCG companies that can overcome these pain points will in our opinion be well-positioned for success in the future.

• Changing consumer behavior: Consumer behavior changes consistently, as a result FMCG brands need to be able to adapt to these changes in order to remain competitive. Ongoing innovation is therefore essential to differentiation whether it be product innovation or innovations that regularly drive the price point of products down.
• Highly competitive market: FMCG brands are constantly competing for a share of the consumer’s attention. The FMCG market is therefore a highly competitive market, with many brands vying for. This can make it difficult for brands to stand out and differentiate themselves.
• Fragmented distribution: The FMCG market is also highly fragmented, with products being sold through a variety of channels, including supermarkets, convenience stores, and online retailers. This can make it difficult for brands to reach their target consumers and ensure that their products are available in the right places. The latest response to this is digital marketplaces that aggregate the products available in a given market niche. 
• Supply chain challenges: The FMCG supply chain is complex and can be subject to disruptions. This can lead to out-of-stock situations and other problems for brands. This has become particularly acute since Covid. The world is experiencing shortages of products that were once plentiful due to the disruption covid caused to global supply chains. This is further complicated by the effects of global warming on raw material supply chains. 
• Regulatory compliance: FMCG brands need to comply with a variety of regulations, both domestically and internationally. This can be a complex and time-consuming process.

The FMCG industry is also impacted by operational pain points, these include but are not limited to the following operational pain points.

• Inefficient order booking: The process of ordering FMCG products can be inefficient, leading to delays and stockouts.
• Lack of visibility into the supply chain: Brands may not have visibility into the status of their products as they move through the supply chain. This can make it difficult to track inventory levels and identify potential problems.
• Poor customer service: FMCG brands may not provide adequate customer service, leading to customer dissatisfaction.
• Data security and privacy: FMCG brands need to protect customer data and privacy. This is becoming increasingly important as consumers become more aware of the risks of data breaches.

In summary, from our perspective it is very important to have a sound understanding of the pain points in the FMCG industry as well as how the dynamics of these pain points influence marketing strategy before developing you market development plan. We have found that without this deep understanding of the industry our marketing plan does not stay on point for very long and results from our marketing plan become somewhat of a “hit and miss” affair. So in conclusion, the FMCG market is a dynamic and ever-changing market. FMCG brands that are able to adapt to the changing needs of consumers and the digital marketplace will be well-positioned for success in the years to come.

What is your experience in this regard? How important is a deep understanding of the pain points in the FMCG Industry to your business development plan? Please share your experiences with WiRD and each other by commenting or interacting on LinkedIn