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  4. Facebook-BCG report indicates a resilient CPG sector with 1.3x rise in the share of digitally influenced urban consumers post COVID-19

Facebook-BCG report indicates a resilient CPG sector with 1.3x rise in the share of digitally influenced urban consumers post COVID-19

The COVID-19 pandemic has left businesses around the world, counting costs. But history tells that both human beings and businesses are resilient and tend to make comebacks. This report dives into the Consumer Packaged Goods industry to analyze how marketers should craft their go-to-customer strategies to accelerate growth

BRAND CONNECT
Published: Jul 27, 2020 09:39:54 AM IST
Updated: Jul 30, 2020 10:15:41 AM IST

While the pandemic is far from over, it has created a never before focus on health and safety. Which means it will be safe to say that the essential categories in CPG remain resilient by showing a positive consumer spending sentiment even amid the income uncertainty.  

While consumer behaviour is truly shifting towards digital, so is the channel choice. And unlike other industries, the shift in consumer behaviour is leading to the rise in demand for many food, beverage, and home care categories.

The salience of digital influence is on the rise for home care, personal care and cosmetics as online channels play an important role in product discovery, research and comparisons. 31% of consumers are planning to trade up across staples and packaged food, while 28% are planning to trade down in this category. On the other hand, 24-29% of consumers are planning to trade up in home care and personal care, while 29-33% are planning to trade down.

The CPG sector needs to orchestrate the supply chain management to meet demand variability and adapt to changing consumer behaviour such as the shift to direct to consumer channels, virtually engaging with products with stronger word of mouth and buying healthy and safer products. 47% of Indian households claim increased household cleaning and 91% Indian households are washing hands more often.

The report points out four key highlights for brands for a seamless transition from an offline to an online experience.

-   Digital influence on consumers has accelerated: 1.3x rise in the share of digitally influenced urban consumers across non-food categories

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-   CPG consumers increasing online spends: 45% of consumers planning to increase online spend in the next 6 months

-   Lockdown has added new online buyers for the CPG industry: 30-45% increase in new online buyers

-   Consumers expect positives of offline to fulfil their needs of familiarity and immediacy: Seek support through the digital channels with customized messaging to aid discovery and word of mouth.

Sandeep Bhushan, Director and Head, Global Marketing Solutions at Facebook India said, “The relevance of the mobile platform is stark today because of its reach and scale. We have seen a 1.3x rise in the share of digitally influenced urban consumers in the last three months. We have also seen a 30-40% rise in new online buyers. Keeping the salience up and delivering safely is crucial at this point of time.”

“Businesses must make sure that they are communicating with resilient cohorts effectively. Additionally, brands must reinforce value propositions to consumers. The players who actively take these opportunities to create a new normal for consumer pathway would be the ones to create long term wealth for themselves” said Kanika Sanghi, Partner and Associate Director, BCG India.

Facebook & BCG recommends these digital touchpoints for brands to tap emerging opportunities

1.   Relook media mix model to build efficiency: Aligning to the new media landscape and focusing on the accelerated role of regional for prospecting customers across categories.

2.   Leverage strong word of mouth: Building surrounds with branded content and working with influencers, creators & publishers, e.g. beauty bloggers for personal care and cosmetics.

3.   Optimize portfolio for value creation: Exploring adjacent and in-demand product lines and solution offering to increase basket coverage.

5.   Drive value by repeat purchase: Remarketing with customized offers for up-trade or repeat purchase and build loyalty with personalized offers to drive engagement.

4.   Replicate in-person experience: Amplification of decision-making tools along with conversational solutions like chatbots & reviews for personalized suggestions.

Pankaj Sharma, Director Consumer Division, L’Oréal India said, “We not only leverage video solutions on Facebook to broaden our consumer base and build awareness, but we also take the consumer down the funnel using conversion ads and mix of assets and campaign strategies. Effectively building brands and gaining consumer trust is crucial.” 

To know more, read the full report: https://bit.ly/32KTViT

Disclaimer: The views, suggestions and opinions expressed here are the sole responsibility of the experts. No Forbes India journalist was involved in the writing and production of this article.

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