Brands must innovate as tech advances transform consumer markets: Deloitte-FICCI report
The Economic Times , Oct 28, 2019
Fast-moving consumer good (FMCG) companies and retailers in India are evolving at a rapid pace and facing major disruption in various parts of the value chain, according to a new study by global consulting major Deloitte and apex industry body FICCI.
Innovative solutions, technologically-advanced startups, hi-tech processes, modernisation and digitisation of back-end operations, tech-savvy consumers, and growing internet and smartphone penetration are a few major factors causing this disruption.
Along with these, the country's macroeconomic factors and favourable demographics are fuelling the growth, said the thought leadership report titled 'Evolve for Consumer.' The supply and demand factors are expected to further accelerate the change of growth in the consumer and retail sectors, it said.
In addition, the government is also providing a strong impetus to make the business environment more conducive for companies operating in this space through developments in infrastructure (electricity, transportation, digitisation of processes and economy, skill enhancement and foreign direct investment regulations) which is facilitating growth.
"Consumer markets in India are evolving rapidly with the help of technology in an environment where data is the new oil. In such a highly competitive scenario, companies cannot afford to overlook any aspect of the shopping journey and lag behind in the competitive market," said the report.
Consumer experience has become more crucial than ever and brands must constantly innovate to offer novel products and services to cater to modern consumers' demands. In this era of consumerism, it is essential that the companies engage the consumers for better connect pre, during, and post their purchases.
Deloitte partner Rajat Wahi said these changes are driven by the rapid development of the retail environment from offline to online to omnichannel. Thus both the shoppers and channels are progressing independently and together, riding on the technology wave.
"In this process, it has become critical for brands to be highly adaptive to cater to these changes. They must keep abreast with the rapid evolution of trends and best practices in India and globally to be able to alter their strategies and meet the consumers' expectations," he said.
FICCI Secretary General Dilip Chenoy said that with the business environment and consumer preferences fast-evolving, brands need to continuously change with the focus being on providing personalised and experiential solutions.
"In this dynamic environment, consumer and retail companies will need to align their business strategies to cater to the demands of a young and technology-driven population," he said.
The report also highlighted the need for vernacular content as many brands are now catering to demands of both urban and rural consumers by offering their services in non-English regional languages.