Three keys to riding the FMCG wave in Asia
Smartphones, e-commerce and consumer expectations: the trends that will drive FMCG in the future.
We have just launched a new report exploring the trends shaping Asian markets. Navigating the Future of FMCG in Asia also provides a real-time preview of the issues that will influence all markets over the next few years.
There are three key trends that are affecting the shopper journey and altering the relationship between consumers and brands:
The role of smartphones
Mobile digital consumers represent the majority of FMCG spending and they have higher household spending power than those who are not mobile consumers.
Smartphones provide FMCG brands with opportunities to influence the behaviour of Asia’s most valuable shoppers, at key touchpoints throughout the purchase journey. There is the chance to build completely different models of engagement.
The e-commerce revolution
The latest Kantar Worldpanel e-commerce report predicted that global online FMCG sales will represent 9% of all FMCG sales by 2025, more than double their share today. However, key indicators suggest that e-commerce in Asia could reach higher levels in a shorter space of time.
Brands and retailers must act decisively, anticipate the different reasons for shoppers buying online, and provide compelling e-commerce propositions that enable them to protect and grow market share. They must be aware not only why shoppers buy familiar FMCG brands online, but also of the impact of e-commerce platforms in lowering barriers to entry for new brands.
Consumers are actively seeking FMCG brands that align with their values and reflect their deeper motivations and needs.
The FMCG brands prospering in Asia tend to be those that succeed in showing a human side and demonstrating an interest in consumers as individuals. It could come through building a brand around real-life customer stories or by demonstrating a commitment to social responsibility. Our tracking shows brands that succeed in humanising their approach are significantly more likely to enjoy steady growth.
The precise impact of these trends will vary according to the different market conditions that they encounter. However, across Asia and even beyond, these are the three trends that will drive FMCG in the future.
For further information and charts, download the full report through the link on this page.