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The document outlines 5 challenges facing the fast moving consumer goods (FMCG) industry: 1) leveraging big data, 2) simplifying customer decisions, 3) emerging markets, 4) the digital consumer, and 5) demographic shifts. It notes that big data creates value through better consumer understanding and improved efficiency. Emerging markets will see over 1 billion new consumers spending $10-100 daily by 2020. The digital consumer is disrupting retail channels and online shelf space. Significant demographic changes include targeting older consumers and capturing micro-demographics as the population shifts.
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- 1. Fast Moving Consumer Goods Challenges
- 2. Challenge #1: Big Data The amount of data in the consumer goods industry has exploded in recent years. Big data creates value in many ways: 1. Providing a better understanding of consumers 2. Improving operational efficiency Only 10% of executives give their organization an “A” in preparedness. 3. Accelerating business performance
- 3. Challenge #2: Simplify Customer Decision Customers are overloaded with products and information. However, most people find difficult to choose a product: 1. Product Specialiation 2. Vendor with more detailed information 3. Minimalist interfaces “People don't know what they want until you show it to them”
- 4. Challenge #3: Emerging Markets Build a leading position on the right sectors with the right products will be the key for FMCG companies: 1. Launch tailored products (market segmentation); 2. Intensive consumer education; 3. New ways to advertise. By 2020, there are expected to be more than 1 billion new consumers spending between $10-$100 per day
- 5. Challenge #4: Digital Consumer While technology has played a key role in the consumer goods industry’s growth, it will be truly disruptive in the coming decade: Online: 1. Retail Channels (Sell directly to customers) 2. Manage online shelf space 3. Consumers are more reliant on referrals In China, the online retail market has more than doubled in each of the last 3years and could exceed $200M by 2015
- 6. Challenge #5: Demographic Shifts There will be a profound demographic changes across all markets: 1. Target older consumers 2. Capture micro demographics: In the United States, for example, Hispanics will makeup 23 percent of the population in 2030 3. Pockets of younger consumers are growing in key markets. By 2030, one in four Western Europeans will be elderly
- 7. What Role I will play in this sector? I hope to work as a business I want to find new ways of doing I will contribute business in this sector. to the evolution of FMCG I will apply entrepreneurship skills that I hope to solve developer in the medium term. some of market. the MBA will teach me. the industry challenges.