pansari blog on FMCG sector

New Developments in the FMCG Sector

The growing influence of the state on the industry

All over the world, every government's country is more concerned about the faster uncontrollable development that any sphere becomes. Even the developed part of the world will soon start to control the industry more, according to the specialists. The mandatory labeling of all the products and the introduction of electronic certification systems is the foremost concern. All this affects the cost of trading business. According to the survey, the prime cost was put in the first place, among the factors hindering the development of companies.

Digital Transformation

Digital technologies are reaching to a new level taking along with the companies to a new level of efficiency; these changes are taking place from several years. Earlier the priority in the competition was on increased investment, and today the focus is on advanced IT Solutions which changes the way retailers interact with their customers and business partners. As per Forrester, more than half the company's revenue will depend on digital technology, by 2020. Already, companies are using Data Science to create targeted offers for buyers.

Development of E-Commerce and Delivery Services

According to analyst, by the year 2020, the e-commerce product segment is growing more rapidly than others in retail, and the online trading market may rise by ten times. From the active development of food delivery from offline stores can easily be traced. And this trend seems to be very successful.

Orientation of retailers to work with B2B clients

Following the leading player in small-scale wholesale, the German chain Metro Cash & Carry of the company in the FMCG segment began to develop this line of sales for legal entities and private entrepreneurs. With the possibility of mass purchase, particular retailers started expanding and opening more and more shops. Small Wholesale sales are also developing in the network.

Growth in the share of Private Labels is a new development in FMCG Sector

The medley of food products of large retail chains today increases and reaches up to a quarter of revenue in some chains. Networks will actively work in this direction, since there are no factors on the market to compel the development of private labels. There are good players in the market that the share of goods under a private label is one third or even half of the total retail turnover. So these are the major changes, trends and development directions of the FMCG Sector for at least the following year. But it is still difficult to tell that when the next turn or twist happens in the market, especially after looking at the speed of our modern world. And to be able to grow with the flow it is always better to keep in mind the current trends.

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