With emerging technologies, new competitors, and changing consumer behaviours reshaping the FMCG market, staying ahead during turbulent times requires more than a ‘business as usual’ approach. To thrive, FMCG companies need a fresh playbook.
Recent analysis shows that 19 leading FMCG companies, including L’Oréal, Procter & Gamble, and PepsiCo, have excelled by successfully adapting to these industry changes. They achieved a median annual TSR of 7% from 2019 to 2023, while the rest of the industry stagnated at 0%.
So, what's their secret? It boils down to six key actions:
1. Engaging in active portfolio management to align brands with consumer values and market opportunities.
2. Encouraging consumer-centric innovation by engaging consumers across all touchpoints.
3. Executing dynamic pricing by leveraging digital tools for real-time pricing adjustments.
4. Adopting next-gen tech, such as AI-enabled product ideation, to reduce costs.
5. Creating flexible supply chains to navigate economic uncertainties.
6. Delivering purposeful societal impact to build consumer loyalty through sustainability.
Navigating economic volatility and changing consumer choices is challenging, but with strategic investments and a future-ready mindset, FMCG companies can achieve sustainable growth.
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