Issues and trends in the FMCG industry
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. 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. 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. 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. 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.
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