Three Trends Changing the FMCG EcosystemCategory Management Association
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This paper addresses at a high level three important trends that are permanently changing the FMCG competitive ecosystem. These changes affect all the industry participants: retailers, manufacturers and the diverse community of solution providers. The three trends and their implications are:
• The Growing Power of the Retailer. The traditional weapons of FMCG mass marketing (TV and magazines) have lost effectiveness and especially efficiency thereby debilitating brand equity building. At the same time retailers have consolidated and now dominate the moment of truth at the shelf aided by new tools such as loyalty cards. The balance of power has permanently shifted towards the retailer.
• The Digitally Empowered Shopper. Today’s shopper can rapidly compare price and quality. This creates new shopping behaviors especially the cherry picking of formats to satisfy specific shopper need states.
• The Big Data Big Bang. Digitally driven shopping behavior creates billions of variegated data points. This tsunami of data comprises ‘big data’. Applying new predictive analytics to this expanding data universe enables marketers to better understand.