'Rapid digital evolution leading to personalised consumption; speed to be key for FMCG supply chains'

NEW DELHI: Consumption behaviour is leading to a change in the buying pattern significantly with e-commerce becoming a major channel and personalised consumption is on the rise in the FMCG industry, Colgate-Palmolive President - Asia Pacific Division Mukul Deoras said on Tuesday. Moreover, the supply chains are becoming more resilient and speed and flexibility will be the key drivers, he said at the CII National FMCG Summit.
The rapid digital evolution is leading to a consumption pattern that is more on-demand consumption.

"This kind of consumption behaviour is leading to a change in the buying pattern significantly with e-commerce becoming big but that is just the beginning of the change. Driving personalised consumption is going to be very big," Deoras said while virtually addressing a session titled 'The Future of FMCG'.


In countries such as China, personalised consumption is exploding and it has a lot of implications on brands, he pointed out.

Now, a significantly different kind of segmentation is emerging in the market -- people who are value-conscious, and those who are going for the upper end of the consumption chain.

"Each of our brands has to evolve and address these two very distinctly, without destroying the fabric of the brand. You would not be surprised if you find a Rs 10 pack and Rs 1,000 pack of the same brand," Deoras said.

Value ladder of innovation is becoming extremely important, he noted, adding that "innovation has to be across price points and across formats."

Now, delivery systems are very important as people are expecting the same experience whether it is sachets or a bottle of a product.

Moreover, digitisation, e-commerce and particularly D2C (direct-to-consumer) has made a big change in the test market for new products, Deoras added.

Besides, communication between the maker and consumer is more precise with the advancement of media technology.

"Data helps us to create the backbone and the spine with which we connect with the consumer sharply and target it. One of the futures of the FMCG is how compatible it is with data," Deoras said, adding as omni channels have evolved, brands would also have to be seamless offline and online.

He added that health-related products have a great future.

"I strongly believe that the fundamentals in India are still very strong, perhaps the strongest one I see in the region," he said, noting that factors like growing number of multiple income families have increased per capita income.

Moreover, women's literacy is increasing, which also has a bearing on consumption trends.

"Some of the women-oriented FMCG categories have seen explosive growths," said Deoras.

Speaking at the session, Pidilite Industries Managing Director Bharat Puri said some brands have seen wonderful success in the D2C space.

"Almost three-fourth of the growth is now coming from new challenger brands. Here are these brands which are looking after a niche or a bigger than niche but they are very focused and have a purpose and going strong," said Puri, who is also the chairman of CII National Committee on FMCG.