The IRI® Annual Insights Report on Fast Moving Consumer Goods (FMCG) shows the problems and trends for the FMCG sector in 2020.
"There are some serious problems and challenges for the FMCG sector for 2020," said Alistair Leathwood, IRI's chief commercial officer.
“However, problems are also associated with opportunities. IRI focuses particularly on how companies interact with the three Ps: pricing, advertising, and personalization.
"We believe that these three business measurements will determine the success and failure of FMCG brands in 2020."
Big against small: brand loyalty is decreasing
IRI research shows that the size of a brand is becoming less and less of a competitive advantage.
“Smaller brands gain market share through quick thinking, flexibility and innovation and at the same time appeal to people's natural tendency to support the outsider.
"Young buyers especially like the idea of the option for the less" mainstream "version of a particular product," says Leathwood.
“Our research has shown that price increases should not be automatic or unfounded. They have to reflect the continuous product revitalization in marketing messages, improvements and packaging improvements, ”explains Leathwood.
"A targeted and data-based advertising strategy is of central importance for inventory management. Our research has also shown that consumers react differently to promotions across categories. "
“Personalization and customization can make a big difference for brands that want to stand out. Brands need to know their customers well to know what customization options they can offer. "
The importance of data
“For big brands that are trying to manage both size and speed, IRI has found that using data and real-time analytics is key to a fast moving big brand. Big brands that rely on big data and technology can prevail against smaller competitors. "
Optimize in-store performance for growth
“The 2020 buyers are extremely concentrated. They want to get what they want and go. Therefore, retailers must have a flawless store experience to keep customers in business. "
“When AI does a lot of the work, your employees have more time to do the things that only a person can do, to be innovative and to think creatively. Your focus should only be on finding the meaning in the data rather than organizing the data, ”concludes Mr. Leathwood.