Digital transformation in FMCG: Navigating the e-commerce landscape – Industry News

– Written by Anand Nayak

In today's dynamic market, access to affordable services is essential landscape.IndiaThe fourth largest sector is fast-moving consumer goods.The world of FMCG (FMCG)), innovation has proven to be a turning point for growth. Chief among these innovations is a standout known as digital transformation. In our current world, this change-maker is fortunate to have been able to align the requirements of both suppliers and consumers alike. This digital transformation is paving the way for dramatic changes in the way FMCG companies operate. While many associate digital transformation with using software to manage production, here are its implications for the FMCG industry. Not only that, but it also incorporates management systems, efficient data collection, retailer benefits, and consumer experience.

Globalization and Reach: Digital Transformation

By taking full advantage of digitalisation, FMCG products are now available across geographical boundaries. Digital transformation has enabled FMCG companies to reach places they could not previously serve. According to a report by Lucknow University's Department of Applied Economics, the FMCG sector is expected to grow by 13-14% over the next 5-10 years and reach a value of $220-240 billion by 2025, which will be It can only be achieved by means. About digitalization. The rise of the e-commerce industry has broken the chain of appearance between sellers and consumers, making it possible to attract more customers and earn more profits and revenue around the world.

User-friendly interface: customer engagement

Digitalization has proven to be more successful for consumers than any other factor. The advent of AI has made it extremely easy for FMCG companies to collect and analyze data on consumer behavior, history, and market trends and modify the user interface to suit consumer demands. A user-friendly interface helps you make the necessary changes to your campaigns, customer engagement, and future approach to service.

The emergence of e-commerce services everywhere allows consumers to compare products available on the market along with their prices. The friendly interface allows FMCG to quickly respond to buyer and market demands, making it very convenient to achieve high customer engagement.

No middleman: no chain

E-commerce platforms have helped innovate the D2C model, which eliminates all intermediaries and retailers and represents a direct connection between brands and customers. Digitalization has enabled FMCG to work directly with consumers to gather important customer data and reviews, allowing brands to offer more personalized experiences and product services. This evolution has created a safe space for brands to take control of their product services and reduced commission amounts. And while you have control over your brand's reputation, it's often deferred by intermediaries.

Digitalization of data: AI intervention

According to a report from statista.com, 33% of consumers prefer express delivery options as part of their shopping experience. Today, AI is transforming online shopping by analyzing data quickly and accurately, revolutionizing the way we buy and sell things online, and mitigating FMCG to create a personalized experience model for consumers. I am. AI in online shopping not only improves customer service but also helps make important decisions by predicting future trends and market needs. Data systems can examine large amounts of data to find patterns and understand customer behavior. This allows online stores to accurately estimate how much inventory they should have and avoid losing sales if they run out of stock.

Reduce administration by organizing data: Increase inventory

Digitalization has improved operational efficiency.Even though it's technology Not only is it essential for manufacturing products in the FMCG industry, but it is also useful in other parts of the business. When FMCG companies leverage technology in their supply chains, they can place orders faster, handle inventory better, and get goods to customers faster.

Digital tools can also improve functionality in other parts of your business, such as managing your money. It also helps you find where things aren't working smoothly.

In summary

Digital transformation has proven to be a major factor in the growth and evolution of the FMCG industry in India. FMCG companies have benefited from technology to expand their reach, engage customers more effectively, cut out intermediaries, and optimize operations. The shift to digitalization has enabled FMCG brands to remain competitive in a dynamic market environment, delivering personalized experiences and increasing overall efficiency. We continue to embrace digital innovation and look forward to further advancements and growth opportunities in the FMCG sector.

(Anand Nayak is the co-founder of Chai Sutta Bar.)

(Disclaimer: The views expressed are personal and do not reflect the official position or policy of Financial Express Online. Unauthorized reproduction of this content is prohibited.)