FMCG Industry known as the Fast-moving customer goods involves the production and distribution of goods that are quick to consume, high in demand, and highly accessible due to their affordable prices. The FMCG sector is one of the key contributors to the Indian economy and is currently the fourth largest sector of our economy.
However, in recent times, the FMCG industry has been facing significant challenges such as increasing consumer demand, low consumer spending power, a rise in health concerns, government regulations, and a highly competitive market environment.
Here are some of the major challenges being faced in this fast-growing sector:
1. Reducing Environmental Impact
Sustainability is becoming a crucial concern in FMCG procurement as people become more conscious of the effects of environmental issues. Businesses are under pressure to make sure their goods are sustainable and to lessen their impact on the environment. This implies that procurement specialists need to be able to recognize and choose suppliers that share the company’s commitment to sustainability. Additionally, in order to draw in and keep clients, businesses must be able to successfully explain their sustainability initiatives and plans to a growing number of environmentally concerned consumers.
2. Navigating Supply Chain Disruptions
The requirement for personnel who can traverse and manage an increasingly complicated and dynamic global supply chain is one of the greatest concerns addressed by our executive search consultants within FMCG procurement. Due to the persistent effects of COVID-19, political unpredictability, and economic volatility, businesses continue to experience supply chain interruptions never seen before. This implies that in order to handle these difficulties and maintain the seamless operation of their companies, procurement experts must possess agility, adaptability, and strategic thinking skills.
3. Sales Automation
The FMCG sector has always relied heavily on conventional sales techniques. Digitalizing field service in FMCG has become crucial for managing a strong brand as the world has gone digital.
Digitalization has given precedence to sales automation over conventional sales techniques as humans become more inaccessible to one another. Furthermore, given the number of laborers being lost to various difficulties such as health concerns and immigration rules, the FMCG industry should make sure that its sales force is not only getting their work done but also that it is productive and optimized.
4. Ageing
The FMCG industry has always relied on enduring brand loyalty. Finding the target market that they serve is the tricky part here, though. Being a highly established and conventional business, FMCG has a diverse customer base that includes both our own millennials and older folks. For the FMCG business, striking the correct balance to satisfy and remain relevant with a wide range of age groups would be a challenging task, in contrast to some other industries that have catered to a certain set of consumers.
To cater to such needs, FMCG brands can simplify products by making small changes while choosing the ingredients, reducing the use of chemicals, and boosting the use of natural ingredients in both food and non-food products.
5. Environment And Sustainability
In the modern world, field service sustainability in FMCG has been a big problem. Businesses have been disposing of their garbage in waterways, and the smoke from their factories has killed a great deal of wildlife and aquatic life in addition to slowly beginning to kill people. It is our duty as stewards of the planet to preserve it and adapt our way of life to one that incorporates sustainable practices.
Adapting to sustainable ways by reducing the usage of plastic, conscious elimination of waste, adopting alternate ways of packaging, sustainable sourcing, and plant alternatives are among the many ways to ensure that companies are adhering to the environment and inculcating sustainable practices.
Conclusion
Looking ahead, the Indian FMCG market is expected to increase by 4.5% to 6.5% in the coming year, despite a number of obstacles. The sector is significant to the Indian economy and has great prospects going forward because to its capacity to handle complexity and adapt to changing market conditions.
