How Is Newzeland Preparing Its Fast Consumer Goods Industry For Unavoidable Challenges?
We can drive many things, but we cannot drive pandemics, the weather and arguably inflation. Thus, there will always be bits of challenge and disruption in FMCG. The crucial question remains, how well has your company prepared itself for those inevitable future instances?
Looking back at the last twelve months, one thing is sure: the market of fast-moving consumer goods this year-to-the-going has had and always will be rather resilient-it, after all, is one such industry that provides the most basic needs-from ‘food’ to personal hygiene.
Retailers and manufacturers have endured yet another long and grueling journey under the unprecedented strain brought about lately by COVID, extreme weather events and rising inflation.
Consumers are facing cost-of-living pressures that seem unlikely to ease anytime soon. The question then becomes how best to prepare for such inevitable challenges and remain agile for the future for manufacturers and retailers.
Our belief at NIQ is to focus on consumer-centric solutions.
In the immediate future, New Zealand FMCG will see three household consumer wants and needs come into play:
Health and well-being
More Health and Well-Being Concerning customers, the testing has been more than a year in coming. Perhaps they are now emerging, along with their corresponding behavioral shift from survival tactics to a more long-term approach towards proactive health and well-being. Consumers are seeking better lifestyle practices as well as looking into their health investments for the long haul.
This year shall be the time during which another polarization shall continue to take place either between the financially insulated and insecure or the renewed focus on planning for their proactive health and retirement. Sourcing local ingredients and quality ingredients would continue to feature proudly in all innovations.
Sustainability
Recent data from NIQ reveals that interest in sustainable products is growing again. However, even though more consumers care about sustainability, they often don’t want to pay extra for it.
The way people make decisions about buying sustainable products is more complex than before. As companies in the fast-moving consumer goods (FMCG) industry plan for growth in 2024 and beyond, it’s crucial to understand the differences in how consumers view sustainability, especially during a time when living costs are very high.
Value seeking and price consciousness
Some customers are choosing the cheapest product from a list of brands they know, while others are simply picking the cheapest option they can find. This behavior was clearly seen in NIQ’s data comparing 2023 to 2022.
Nearly half of New Zealand shoppers are waiting for the product they want to go on sale, and 46% are looking to buy brands that are on promotion.
That said, there’s still a place for expensive items if they offer enough value or features to justify the cost. In fact, 32% of products that raised their prices managed to make up for the drop in sales caused by the increase.
Companies in the FMCG (fast-moving consumer goods) sector need to carefully plan their product and pricing strategies to cater to different customer needs and budgets. However, they should be smart about promotions to avoid getting stuck in a cycle of constant discounts.
Conclusion
To get ready for what’s coming, stay focused on finding solutions that can easily adjust and change. Create a solid base, come up with new ideas to help grow, and most importantly, understand your customers and make them the center of every choice you make.
Read Dive is a leading technology blog focusing on different domains like Blockchain, AI, Chatbot, Fintech, Health Tech, Software Development and Testing. For guest blogging, please feel free to contact at readdive@gmail.com.