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E-commerce for FMCG: How Online Shopping Has Digitised The FMCG Industry

Jul 10, 2024

Social Commerce

E-commerce for FMCG: How Online Shopping Has Digitised The FMCG Industry

The world of fast moving consumer goods (FMCGs) has been forever changed by the rise of e-commerce for FMCG.

Once found only in traditional brick and mortar stores, FMCG can now be purchased on any trusty old iPhone. From makeup to microwave noodles, consumers can get their hands on any and all FMCGs they desire. 

E-commerce for FMCG is one of the most effective ways for these brands can sell their products to modern consumers. Ultimately, going digital has allowed FMCG businesses to expand their reach, streamline their processes, and better cater to modern consumers. 

E-COMMERCE FOR FMCG

E-commerce has revolutionised the way that consumers make purchases.

Rather than taking a stroll up the road to buy some toilet paper, consumers now swipe through Temu to find the best deal. Instead of heading to the mall to buy a new makeup kit, users head over to TikTok shop and find a seller. 

With consumers changing the way they shop, brands are having to adjust the way they market. Omnichannel marketing has become essential for modern brands; creating a fused physical and digital shopping experience for consumers. 

The FMCG industry, in particular, has had to quickly adapt to modern consumer desires. To stay afloat, brands must now be present on both TikTok Shop and Sephora’s shelves or they simply do not stand a chance. 

Yet, going digital holds exponential growth opportunities for FMCG. By adapting to e-commerce for FMCG, these brands unlock a whole array of positive benefits. 

Such as..

Expanded Reach 

By engaging with e-commerce for FMCG, these companies have been able to expand their reach far beyond their traditional scope. 

Whilst traditional brick and mortar stores have a more limited, local reach, e-commerce for FMCG gives these businesses access to the global market. Through this breaking down of physical barriers, FMCGs have the potential for increased sales and revenue, due to a far broader consumer base. 

Direct to consumer marketing 

The direct to consumer (D2C) model has gained enormous amounts of traction in recent years. 

D2C refers to brands marketing directly to consumers, rather than via intermediaries. Through e-commerce for FMCG, these businesses are able to sell to their audience directly, rather than having to work through various middlemen. This significantly cuts down on distribution costs, and allows brands to have far more control over essential variables such as brand image and consumer experience. 

On top of this, D2C also allows businesses to collate customer data and feedback more efficiently, creating the perfect environment for personalisation; which is heavily desired by modern consumers. 

Improved customer experience 

Digitalisation gives FMCG businesses the ability to create a perfectly personalised experience for their consumers. 

Via data analytics, AI-powered algorithms allow FMCGs to track consumer preferences, behaviours and even purchase history. As such, companies are able to tailor marketing campaigns, product recommendations and more; guaranteeing better customer satisfaction and customer retention. 

Moreover, online shopping is incredibly convenient. As such, it has improved the overall consumer purchasing experience, leading to more sales and higher rates of consumer retention.

Improved marketing strategies 

Through e-commerce for FMCG, FMCG marketing strategies have completely evolved. Classic marketing strategies have shifted, giving way to more targeted and effective digital marketing. 

FMCG companies can now reach their consumers through email campaigns, social media, search engine advertising, and influencer marketing. On top of this, e-commerce for FMCG arms these brands with excellent data analysis to better measure the effectiveness of these campaigns. Using real time data, brands can shift their approach accordingly, maximising efficacy.

Data driven decision making 

When it comes to e-commerce for FMCG, data is the name of the game. 

Shifting online has allowed FMCG to gain an incredibly large amount of information on essential areas such as sales patterns, customer behaviour, inventory levels and more. Through utilising this data, FMCG businesses are able to engage in data-driven decision making. 

Data-driven decision making ensures brands can optimise their inventory management, pricing strategies, new product development, and supply chain efficiency. Ultimately, streamlining their business process from top to bottom. 

Improved innovation 

The digitalisation of the FMCG industry has led to an exponential increase in innovation. 

This phenomenon is primarily a result of increased access to real time consumer feedback and market trends. Improved access to these valuable insights allows companies to more efficiently ascertain gaps in the market and make new products accordingly to meet consumer demand.

Moreover, companies can also test out new products online before properly releasing them.

Optimising the supply chain 

FMCG supply chains have become far more effective after the digitalisation of the industry. 

E-commerce for FMCG streamlines the business process, from inventory management all the way to order processing and fulfilment. By blending e-commerce with supply chain systems, FMCG businesses can minimise lead times, reduce stockouts, and improve the efficiency of operations on the whole. 

Omnichannel marketing 

Omnichannel marketing is essential for FMCG brands looking to appeal to modern consumers. 

Through omnichannel marketing, brands can merge their channels to form one cohesive brand image; pulling together physical and digital experiences to reach consumers from all angles. 

E-commerce for FMCG is key to succeeding at omnichannel marketing, as it allows FMCGs to merge their physical and digital stores, allowing for a seamless consumer experience. 

FINAL THOUGHTS

All in all, the way forward is digital. 

Modern consumers are no longer satisfied with mere physical stores. FMCG brands wishing to stay on top of the game must join the tide and engage in e-commerce for FMCG. In doing so, they are able to expand their reach, make their supply processes far more efficient, and better appeal to modern consumers; and that’s just the beginning. 

For brands hoping to get involved, TikTok Shop and Temu are excellent places to start. Interested parties should take note of which e-commerce for FMCG platforms their audiences occupy most, and begin there.

Our influencer marketing agency and social agency are located worldwide, with our agency network based in the USA, UK, UAE and China.

If you want to find industry insights, visit our influencer marketing and social media blogs.

@sociallypowerful

Author

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Annette Klar

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