Issues and trends in the FMCG industry

Document Type:Thesis

Subject Area:Finance

Document 1

Nowadays, fast moving consumer goods industry is facing a range of risks which emanate from the current trends in the global market. The role of technology in the business world is becoming more important each day. Competition has been shifted to online through the use of internet. The role of internet cannot be ignored in conducting business globally in the industry of FMCG. Global business in FMCG has resulted to emergence of a new array of impending financial risks which need financial analysts of different mettle. Due to the trends that are witnessed in the business world, corporate finance and accounting has been changing not only to accommodate the new trends in the business world but also solve the new challenges that arise. This is because the importance of corporate finance is still ubiquitous and must provide solutions to the emerging problems in the market. It is imperative to note that the business world has greatly changed and overreliance on business data has become a necessity where companies have to submit their annual reports showing their financial position. Consequently, employee roles have changed and many employees have been forced to be engaged in short term courses that equip them with relevant skills and knowledge that help in providing solutions to practical problems in the global market. This paper analyses emerging global issues and trends in the FMCG industry and provides relevant solutions in accordance to international best practices and standards. Global issues and trends Whilst fast moving consumer goods market has been a great business hub, there are many challenges which have lead to contradictions afflicting the operation of the market.

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Emerging global issues and trends are greatly influencing the innovation of companies that manufacture consumer goods. The same issues are also influencing the prices of fast moving consumer goods. The emerging issues and trends that affect operations in the fast moving consumer goods industry can be identified as; 1. War on plastic packaging materials. Online shopping 3. Regional and religious demands. Dietary issues 5. Brexit War on plastic packaging material. The wide use of plastic bags and bottles has been blamed for pollution of the environment. Online shopping. With the emergency and advancement of technology, many companies have introduced online platforms where they can sell their products. Numerous online shops have been established as they are easy to manage and cost effective. With the use of internet, global business has been made possible. Shopping has been brought to the convenience of the buyer.

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One of the key factors that affect demand of goods in the fast moving consumer goods industry is the culture of consumers. Some goods which are highly demanded in one region may be a taboo in another region. FMCG manufactures are responding to this issue by introducing goods and products that cater for religious diversities to ensure regional provenance. Some clients believe in local products which have local flavors, local ingredients and local recipes. Dealing with such clients needs a strategic plan from manufacturers. Different people have been suffering strange illnesses which are expensive to treat. These illnesses have been associated with improper dietary habits. Many consumers are very keen on what they consume. Global sales of meals that are considered healthy have been increasing and are expected to increase further because people have adopted healthy ways of eating.

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There has emerged a group of people referred by physician to take special meals, other takes special kinds of foods by their own choice (Mintel, 2018). UK is a major contributor to the European Union which is the biggest market. Its exit is likely to affect the FMCG negatively. Solution to the problems and issues. In addressing these issues and problems, FMCG industry is expected to follow corporate finance accounting strategies and apply international best practices and standards. In the issue of war against plastics, every business organization is required to behavior responsibly (Kasim, p. This can be made possible by conducting a survey on what the people demand in a certain locality and then diversifying their products to meet their needs. For companies to avoid resistance of their products, they should make use of the local flavors and ingredients which the locals will find more favorable.

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Furthermore, there should be special products that address people with dietary issues. Companies should manufacture products for all kinds of people regardless of their needs. The market for products for people with dietary issues is so big and companies need to exploit it Brexit still remains a big challenge to FMCG industry because of the uncertainties yet to be realized. FMCG companies should also major in other strategies such as price optimization, maintaining consumer loyalty and venturing into fast evolving markets. The companies should also incorporate technology in their systems which will enable them to reach the target audience Works cited Aydın Çelen; Tarkan Erdoğan; Erol Taymaz (June 2005). Fast Moving Consumer Goods Competitive Conditions and Policies" (PDF). Economic Research Center, Middle East Technical University. Retrieved 2007-07-09. shtml, (Retrieved 18th April 2018 T.

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Hansen (2006) Determinants of Consumers’ Repeat Online Buying of Groceries,Int. Rev. of Retail, Distribution and Consumer Research Vol. No.

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