Who doesn't know Fast Moving Consumer Goods or FMCGs? It is one of the sectors which have a strong position not just in India but also in the global economy. FMCGs are those products that deliver a short shelf life and a high rate of selling.
Thus, only FMCG retains many business opportunities. 2020 may have been the year of surprises and shocks, but it's been a year of technology. This year will ramp up with technological transformation. Companies will be concentrating on more operational efficiencies basically, for slow consumption on the rural market. Platforms like retail intelligence will use the technology pack to use the data insight for meeting the production to use the balance. They're a lot of attempts made to bring satisfaction among retailers and consumers.
While the market remains to grow at a rapid pace, the Indian Retailer gets a look at threats that may affect the FMCG industry. Let have a look at the threat faced by the FMCG industry.
The Threat of Getting Replaced
In the market, one product has more than five brands to cater to the consumer, and it's very comfortable for them to choose or switch from one brand to another. Consequently, brand owners need to work on the strategic decision, price, and quality at the same time to cater to the audience.
Some products have a small difference between them. Therefore, it is not difficult at all for the user to take the decision changing them from regular product to another. Thus, the threat of getting replaces is real, and it cost us enough when the consumer does this. Hence, brand owners need to work on both an immediate and long-term plan for attracting buyers to stay with you.
With changing time brand not only expanding themselves, but getting into new geographies with new categories to touch new modern retail market. We all are brands like Wipro, Patanjali, and many more are diversifying and expanding their product range to cater to each group with varieties. As we know, the FMCG industry is highly fragmented as more companies enter the market.
This brings huge competition and tough times for weak brands in the market to stand. They need to work on price with the product's quality and great deals so that they can stand big competition.
Transaction Power of Buyers
Increasing incomes and young growing population have been key growth drivers of many sectors. With low-cost products attract customers to switch to other brands. Thus, the brand owner needs to cater to more demand with a new product range.
This can only be achieved only by a strong influencer of marketing strategies to get the consumer to stay with your brand. For sustaining, the customer brand owners need to reach a firm decision on how they stand up with cheap brands without losing the quality of the product and customer.
The Threat of New Players
Every new competition in any sector gives threats to any existing brands in the market. An investment plan approval by foreign equity in single-brand retail and 51% in multi-brand retail give new brands a chance to enter the market and results in making the market crowded and full of competition.
That also leads companies to spend aggressively on the adverts and other promotional plans that can hurt the brands in the long run
Every industry has it their kind of benefit and threats which, you need to cater to changing times. These threats will help you to quiver up the problem and help you to face them with the thought process.