Omnichannel adoption driving consumerism in the Indian FMCG sector
Over the last few years, the world as we know it has undergone significant transformation in terms of consumerism, owing to the disruptive impact of the Covid-19 pandemic. Between the countless lockdowns, restrictions, and supply shortages, many consumers sought to purchase in bulk and stockpile what they needed. Accessibility and availability immediately became first priorities, as opposed to brand loyalty or personal preferences. Once the initial wave of panic buying settled down, it was clear that the majority of consumers had begun exploring alternate distribution channels, especially online shopping and home deliveries.
Increasing digital purchases
As more and more consumers went online, e-commerce and digital purchases accelerated quickly. There were considerably more people purchasing things online, including many first-time buyers, in addition to more goods being purchased overall. A report by Bain and Flipkart1 states that the Indian e-retail sector experienced a growth of 25 percent in 2021 and significantly increased penetration, bringing its market share to 4.6 percent by the end of the year. This shows the rise of a new generation of cautious yet eager internet buyers, shining a spotlight on the potential and importance of omnichannel marketing and customer interaction.
Rise of omnichannel consumerism
As the country adapts to the new normal, today’s consumers are both more aware and discerning, when it comes to their needs and priorities. This is further supported by a survey conducted in November 2021 by Statista2 that shows that 68 percent of consumers in India use omnichannel for their grocery needs. Omnichannel marketing entails communicating with customers both online and offline, regardless of their location, and providing a brand experience that is consistent across all platforms and channels. Consumer interaction across a range of platforms at every stage of the sales process is a must today, for driving awareness, converting potential customers, and retaining brand loyalty.
A customer may purchase something in-store, on their way to work, and request delivery to their house, or they might shop online, including through social media, and pick up the goods themselves. here may even be a mix of alternatives, ranging from a full e-commerce experience to self-checkout at a physical store. Additionally, they can also be simply conducting their research online before making an offline purchase, or vice versa. As such, offering a cohesive experience across both digital and physical channels has become essential today, as consumers prioritize choice and flexibility.
Benefits of Omnichannel for manufacturers
The growth of e-commerce and omnichannel consumerism also have presented an incredible potential for brands and manufacturers to leverage consumer data. Manufacturers can better understand their end consumers thanks to their omnichannel presence, and utilizing data effectively opens up a world of possibilities, from creating tailored experiences to creating new products catering to specific customer preferences. The combination of omnichannel data provides an even more comprehensive picture of consumer behavior, promoting agility and better decision-making.
India’s omnichannel adoption
Mumbai-based Cravova, one of India’s fastest-growing new-age beverage brands, grew at an astounding rate of 500 percent within just a year, from 2020 to 20213, leveraging an omnichannel strategy. By integrating branding, messaging, and online and offline consumer touchpoints, the brand achieved GMV (Gross Merchandise Value) sales amounting to INR 16 crores during 2021-2022. Many FMCG retailers in India including Le Marche and Modern Bazaar have also begun developing and enhancing their omnichannel presence, in order to leverage its massive potential.
For food and beverage manufacturers, omnichannel retailing has its unique challenges. Dependency on their retail partners for the last-mile delivery means manufacturers have limited control. It can also become difficult to provide a consistent brand experience across owned and third-party channels. Here, unifying channels like social media, websites, and the often-overlooked product packaging, can be a differentiator.
Challenges of Omnichannel
However, there are a number of challenges that manufacturers of food and beverages face when it comes to omnichannel commerce. Usually, manufacturers have little influence over last-mile deliveries since they are dependent on their retail partners, and providing a brand experience that is consistent across D2C as well as third-party channels can become difficult. Here, integrating a brand’s platforms including their website and social media, as well as focusing on product packaging, may help set it apart from the competition.
SIG’s packaging solutions
This is where SIG India’s innovative and scalable packaging technology can play a critical role in differentiating brands on-shelf, and ensuring consistent customer experience everywhere. Its range of products come in flexible sizes, shapes, and features, including cartons with spouts, screw-on caps, and more. In addition, SIG’s cartons are also created keeping in mind an array of consumer demands and trends including health awareness, convenience, and sustainability, as well as aesthetic appeal. SIG’s Track & Trace system takes this even further with QR code-enabled customer engagement and transparency through its PAC.TRUST and PAC.ENGAGE solutions. Leveraging these, brands can easily interact and engage with consumers, drive recall value and loyalty, and enable them in being a part of a community.
The way forward
Ultimately, omni-channel for FMCG firms covers a vast number of factors, instead of just a singular aspect. An organisation must have a complete and integrated omni-channel strategy that pays attention to these dynamic and varying aspects across both digital and physical retail. In the years to come, the four pillars of operations, shipping and fulfilment, advertising and marketing, and sales channels, will all play a crucial role in ensuring a strong foundation in omnichannel marketing strategies for brands.
Source:
1: https://www.bain.com/insights/how-india-shops-online-2021/
- August 24, 2022