Synopsis: eCommerce sector has been booming. Adjoined by several industries, it has growth offers for each. FMCG industry has been a regular go-to market for consumers ever since its evolution. It has its growth sector enriching 6 times faster when joined by eCommerce. This blog covers the same, and how eCommerce can help the FMCG industry boost its sales faster.
In the previous two years, the FMCG industry has shown resiliency and innovated tactics to advance. By embracing technology and creating marketing strategies to address shifting consumer expectations, the industry underwent a tremendous metamorphosis.
E-commerce is leading the way in the industry's transition and has the chance to increase its market share in several channels. By 2030, FMCG e-commerce is anticipated to account for 11% of all FMCG sales, according to Nielsen. Concerns about nutrition, sanitation, cleanliness, and health have caused a change in eating patterns. The preference for simplicity and safety while shopping with just a click from the comfort of their homes and increased purchasing power among large numbers of consumers have prepared the way for growth.
There is a significant possibility for businesses to sell items through their own sites, directly to customers, even while many FMCG firms sell their products in physical stores, in restaurants, or through online retailers like Amazon and eBay.
Here is how the FMCG sector can and has been expanding itself in the eCommerce realm:
The ability to gather useful client information that will help you understand their purchase habits and develop a one-to-one relationship with them is one advantage of having your own online store.
This can give an FMCG brand information like:
Amazon is the industry leader in e-commerce for individualized purchasing. It is entirely customized, ensuring a seamless purchasing process each time.
Numerous advantages result from marketing personalization implementation. Personalization in FMCG eCommerce encourages consumer advocacy, aids in creating deep connections with its current clientele, and draws in new clients. By creating a step-by-step plan for personalization and working closely to implement it, UNRVLD works with customers to help them get the most out of their investment on the Sitecore platform.
The FMCG e-commerce accounts for just 1.3% of total sales worldwide. Only 9% of the top 100 UK businesses are using the potential to sell directly to their customers, according to our 2019 FMCG Digital Census. Brands have an early chance to distinguish themselves from their rivals and get out in front of their competition by starting sales on their own websites. By doing this, brands take center stage in their digital spaces and give visitors a reason to visit them rather than having an information-only, information-only brand website.
Brands are always competing with one another for the attention of shoppers in the commotion of the shopping aisles. It is expensive and sometimes difficult to measure to dominate and influence purchases in the offline sector. FMCG e-commerce websites make it easier to be heard.
Visitors who land on a company's website have done so on purpose, are already displaying some interest, and are perusing a virtual store that is filled only with items from that brand. With no competition, an e-commerce site enables companies to maximize interaction in the beginning. They have complete control on their own brand platforms to design the ideal user experience with their offerings, promotions, and brand messaging.
FMCG firms who are trying to switch from using stores like Tesco to online marketplaces, like Amazon, may be going at full speed into the same constrictive type of relationship as online shopping continues to upend the industry. FMCG companies are forced to rely on outside sales channels, which limits their options. Often, pricey margins are lost to retail behemoths, and the merchants control how manufacturers can advertise their goods.
Ecommerce platforms free FMCG companies from various restrictions put in place by retailers. They can sell their brand whatever they want and keep more of the money. According to a recent Forbes article, 19% of individuals would rather make their first purchase directly from a brand than through an online marketplace like Amazon. E-commerce is a compelling opportunity for brands that are eager to increase their revenue and take more control of their brand.
It can be difficult for businesses to keep track of their product once it has been supplied to retailers. Although producers are still uninformed of how consumers feel about their products, retailers are aware of how buyers perceive a brand. The direct-to-consumer (D2C) business strategy closes the gap by giving companies more control over the marketing message and its presentation as well as a better understanding of how their customers view them.
Since customers are visiting brands' official websites directly, organizations may gather a wealth of insightful data in one place. It has been demonstrated that this is a fantastic opportunity for businesses to interact with one another more successfully by delivering a seamless user experience and interface, as well as to develop greater trust and generate profitability.
Digital innovation and the growth of e-commerce have led to the emergence of several new competitors in the market, all of whom are posing a demanding degree of competition for existing businesses. Due to their distinctive business strategies that have been improved to satisfy the rising expectations of the modern consumer, it is projected that these firms would contribute to a growth in sales for the FMCG industry in the following years. Which demonstrates that the FMCG industry is a crowded market, therefore businesses must come up with innovative strategies to keep their brands in consumers' minds and get their items into their hands.
E-commerce is a fantastic way to accomplish that. Get in touch if you'd like to talk about how e-commerce could help your business. At FutureSoft, we specialize in creating wonderful digital experiences using platforms like Magento, Shopify, or WooCommerce. To learn more about how we may assist, see our services pages or give us a call for a brief conversation.