FMCG’S In A Changing Marketplace
In the UK, one of the world’s most mature online markets, FMCG’s have made little inroads. Only 7.1% of grocery spend is done online according to Kantor Worldpanel. FMCG’s have mastered the art of effective and intuitive merchandising in the shopping aisles and the tantalizing placement of product in the checkout queues. However, in that highly competitive space, where consumers are not inclined to research the benefits of option A versus option B, where their interest merely lies in saving time and money, it is extremely difficult for brands to stay ahead of the curve. With luxury items, retailers and brands alike are able to map consumer behaviour by profiling target customers and applying a strategic approach to fulfill the emotional needs of their target market. The reality for FMCG’s is that they are viewed as commodities and brands are given little consideration and the most successful items trade by whatever looks like a deal at the time.
So what is the approach for FMCG’s? A stay at home mom is not interested in reading online ads in order to meet her weekly budget. What she may be looking for is a way to decrease the time it takes to make the purchase decisions to fulfill the basic shopping required to run the family home. The opportunities are there for brands to offer value by offering convenience like a suggested recipe doubling as shopping list or finding complimentary partnerships that are merchandised in stores to offer a complete night in like pizza bases, cheese and pepperoni.
Amazon has launched AmazonFresh and is over 5 cities in the UK already and it is the first unveiling of this internationally. They have obviously identified this as the next big growth area for e-commerce. If, and surely when, they get this right it will totally disrupt the way FMCG’s are sold around the world, but until then it is up to brands to use other initiatives. Consider contacting us at Zipcast and let us tailor a digital solution for you that focuses on the last 10 feet of retail.