Technology showing the pwer of itself in fmcg


Digitization and technology have played a significant role in transforming the FMCG sector and bringing tremendous growth in this sector. A considerable shift is seen to the consumption pattern with the society becoming more consumption-driven and with subsequent increase in the disposable income. Also, the sector is experiencing tremendous growth in recent decades. There are several factors transforming the FMCG sector like the continuous diversification of products across the food and non-food categories, the proliferation of wellness products. Also, the diversification in greater age and gender-specific segmentation have been some notable factors.

In recent times as people have become more conscious of having healthy items, the market has witnessed a greater inclination towards healthier items and herbal items as the need for such items has been drastically increasing. Household and personal care products account for 50 percent of the market. Healthcare products account for 31 percent. Food and beverages amount to 19 percent of the sector in the FMCG sector. Despite the recent backlash suffered by the FMCG sector due to the market, it is now experiencing an increasing growth trajectory due to increased consumption and demand of essential commodities and reduced want of non-essential items by the people due to the pandemic blow. Especially after the pandemic, digitization is extremely important. Therefore, it is becoming slowly and slowly essential. This helps them reach customers on a wider prospect.

Introduction of digitization:

Technology is one important aspect that can help the FMCG sector evolve and reach greater growth in the future. With e-commerce transforming into greater customization and greater use of digital marketing, a numerous number of players in the sector are looking forward to embracing digital technology. It is done to surmount huge growth levels and fight the hectic competition. Hence, making the survival of existing companies and entry of new ones difficult. This will also create a significant differentiator between the organizations. 

The FMCG sector even needs to leverage the benefits of digital marketing by developing the tools strategically to target different sections of populations from urban, rural, male, female, young, and old.

The increasing role of digitization across the board

The market of the FMCG sector is expanding continuously. Even more, internet users are increasing day by day with expounding numbers of online reach and website orders. So, therefore, the increasing use of mobile analytics, artificial intelligence, and cloud technology, is all set to enable the FMCG sector to emerge as the global behemoth over the next decade. According to the reports and different studies done by the trusted institutes. It suggests that spending made on the FMCG sector will witness a maximum share ordered through digital mode. Thereby, expanding the digital footprint in the market. The digital presence can be seen extensively especially after the pandemic. Around two-thirds of the executives polled said digitization is one of their top priorities for the future. 

Technology has not been a boon for the consumer goods sector. There is an increasing number of organizations looking to leverage the benefits of digitization to boost functioning across various departments. Such as like marketing, sales, retail, supply chain management, or human resource management.

The processes followed by the businesses are getting more and more automated with time. It tends to cast immense change in the workings of the businesses and help them become more efficient and cost-effective. Automated systems are helping companies to manage their daily work procedures well and effectively. AI tools are used to manage inventories, plugging loopholes in supply chain management, and build an efficient distribution channel. It even helps in eliminating human errors. It is done by building accounts and books electronically and digitally. In addition, also allowing the organizations quick access to data pertaining to demand and supply. This has even been used to track customer response and customer satisfaction after the sale. Hence, this gives an overall understanding of the customer’s wants and preferences.

How digitization and technology power the FMCG sector's future growth

Big data

Huge data analysis is extremely important. It is done based on human preferences. In addition, the wants of the consumers and understanding different types of consumers. This improves the service in accordance with the customer demands and not according to what they want to offer. Digitization gives valuable data to the users on a daily basis. These data help in analyzing the pattern of consumer behavior and consumption. Therefore, this gives way for proper customization of the products and services to meet the needs of the buyers. 

The process of decision-making becomes quite smooth and easy with big data analytics in place. This helps in understanding and gathering data on a large scale enabling a wholesome knowledge and outlook about the customers. The quicker one differentiates the response and reacts to it, the more they get differentiated from their competition. Hence, big data analysis can help in solving various management problems.

E retail

Initially, books and apparel were the first major products that helped e-commerce to take off the retail segment. However, today we see almost all products have to actively change their dynamics and strategies for the e-commerce industry. An increasing number of FMCG sectors are working aggressively to gain an online presence in the market. It is not just on the e-commerce sites but also on the dedicated selling digital platform.


There are several initiatives from the government in this respect. This is the fastest growing industry and digitization will further add to their reach. It will therefore bring about tremendous transparency in the markets. The existing companies and even the young start-ups are exploring digitization extensively for knowing the demand patterns. In addition, search for their respective customer market is also helpful.

Stakeholders are looking for sound and innovative technologies to be a core part of their product offerings. This is bringing a drastic change in the way businesses work and the way they are further exploring huge market opportunities based on their outcomes. MGH is one such company that has been able to implement digitization which has helped in the growth of the FMCG sector.

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