There is an increasing focus on serving customers through DTC — direct-to-consumer channels, on operational resiliency throughout FMCG supply chains, and on satisfying consumer desires for ethical and sustainable shopping.
Additionally, companies are furthering their investments in creating experiences for their customers, along with use of the Internet of Packaging throughout their supply chain process.
The last two years have been a roller coaster for consumer goods businesses. Shoppers demand more convenience and innovation but continue to be frustrated by higher prices and product shortages.
The Great Resignation added more turbulence to an already fraught labour market. Add the ongoing supply chain crisis, and it’s pretty clear that this wild ride isn’t ending anytime soon.
The dramatic uptick in DTC demand has created a need within the fast-moving consumer goods industry to innovate to accommodate this channel shift. In fact, DTC is going to continue to grow as more consumers experience its benefits.
The world has become more global. Companies across industries have applied cost-saving tactics such as shipping overseas, typically in concentrated areas, to lower their labour and warehousing costs. However, cost-saving strategies have also created avoidable risk towards supply chains and their overall operations due to volatile input costs.
Natural resource shortages will continue to pose a major threat to businesses because of company-wide shutdowns or evacuations of facilities.
Health and wider well-being have emerged as continued major topics in FMCG Gurus latest top ten consumer trends studies on shopper behaviour, prevention over cure assesses how health goals are shifting towards a focus on disease management and proactive approaches to well-being — meaning there is an interest in functional products that address health problems, even if people are not suffering from specific symptoms.
Approximately 80 per cent of consumers are more likely to buy from brands that tailor experiences to customer preferences. The financial rewards are rich: Companies that get it right see a 50 per cent increase in customer loyalty and increase in average order value. But to deliver on the promise of personalisation, companies need to build their first-party information infrastructure. That’s why 80 per cent of brand leaders are focused on gathering data like consumer email addresses, purchase history and payment preferences.
Even the world’s fastest roller coaster cannot compete with the thrills of these once-in-a-generation market conditions.
That might mean companies have to buckle up and work harder than ever before. But by keeping a weather eye on these trends, they can win the hearts and the wallets of consumers for years to come.
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