Grocery & Fast Moving Consumer Goods: Always in demand
FMCGs are those consumer products (not services) which we consume/use in our everyday lives and these products are purchased on a routine basis (daily, weekly, monthly but usually not more than a year). It can be food and beverage (like milk, tea/coffee, fruits and vegetables, dairy products, soft drinks, packaged snacks), hygiene products (like toothpaste, toothbrush, soap), office supplies, cosmetics, over-the-counter medicines (like bandages, antiseptic solutions). FMCG products are non-durable in nature and carry a shorter shelf life. The demand is always high for these products. They are readily available in the local retail stores and can be easily purchased. Some prominent FMCG companies in the world are Dabur, Unilever, Nestle, Procter & Gamble, PepsiCo, and Johnson & Johnson. It is very likely that in the last one hour you might have used a product manufactured by one of these companies.
FMCG Industry in the GCC
The FMCG industry in the GCC (Gulf Cooperation Council) has experienced impressive growth, owing to factors such as a growing population, increasing disposable income, and changing consumer preferences. The industry is diverse, encompassing food and beverages, personal care, household care, and tobacco products. The food and beverage segment is the largest, followed by personal care and household care. The COVID-19 pandemic has had an impact on the industry, leading to a shift in consumer preferences towards health and wellness products. To stay ahead of the competition, businesses need to focus on key success factors such as efficient supply chain management, effective marketing strategies, and developing a strong brand image. By leveraging technology and innovation, companies can position themselves for long-term growth and success in the region.To succeed in this industry, businesses avail the services of grocery business consultants, FMCG consulting companies or FMCG consultants.
Challenges ahead for FMCG Businesses in the GCC
GCC Countries include:
Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman. The grocery market in the GCC is a growing and a lucrative sector, driven by growing population and increasing disposable income. Every industry has its own challenges. YRC Experts have listed down key challenges below:
Lower Consumer Spending
Global FMCG consulting experts or grocery business consultants could tell that despite impressive income levels and spending power, consumers in the Dubai, UAE are yet to answer their purchasing calls in the old spree. The ongoing pandemic has led people around the world to think critically about their consumption patterns. Also, the early phase of the COVID pandemic created an environment of uncertainty about jobs and income security. A tough challenge here for both online grocers and offline grocery businesses would be to revisit their merchandising strategy and create for themselves a brand positioning of care and responsibility.
Customers’ shift towards eCommerce
The COVID pandemic further reiterated the potential of eCommerce. With the new norms of safety, hygiene, and social distancing becoming commonplace, it was obvious to customers to lean towards online purchasing including goods of everyday usage. It is a reality that while big retail malls and retail spaces wore deserted looks, e-commerce and the working supply chains saved the day for us.
Brand Reliability and Customer Retention
Many FMCG consulting experts and grocery business consultants already predict that once the new normal sets in, consumers will feel more comfortable with brands and stores they trust or are trusted by the majority around them. New retail stores or businesses with a poor consumer reflection will have a hard time attracting any decent footfall if they keep doing business in the old ways.
Operational Efficiency in a New Environment
With lower sales, high competition, low consumer spending, and a fight for margins, retail businesses dealing in FMCG products will also have to turn inwards and reassess their operations. A robust set of internal operations will not only help them cut costs but also deliver better customer experience.
How YRC Grocery Business Consulting Experts Help Businesses to Start & Expand?
Whether it is a brick and mortar FMCG supermarket or eGrocery store or looking to start supermarket business, YRC can help your business idea become a reality with robust planning and implementation assistance. YRC’s FMCG consulting experts will be there at every step of the journey delivering more than just grocery store consulting or playing the role of supermarket setup consultants.
We are a boutique retail consulting firm. To know more about our CPG consulting or FMCG consulting services or if you have any query, drop us a message and we will get back to you.
FAQs
How to start a supermarket business? or How to start a grocery shop?
When considering to start a grocery business or set up a supermarket, there are seven key points to keep in mind.
- Develop a strong business model.
- Finalize your product categories.
- Plan your store layout.
- Establish your organization structure.
- Create Standard Operating Procedures (SOPs).
- Evaluate and select appropriate software.
- Provide SOP training to employees.
For a more detailed understanding of these steps, refer to the following video:Click Here.
How to start online grocery business? or How to start a grocery delivery service?
Starting an online grocery store or launching a grocery business requires four key steps.
- Establish a strong business model.
- Design an effective dark store layout.
- Create an organizational structure and Standard Operating Procedures (SOPs).
- Develop a mobile app and integrate software.
For more detailed insights on these steps, refer to the following video: click Here.
How to grow grocery business?
As consumer behaviour has drastically changed post-Covid, supermarkets must adapt to the changing buying behaviour to cater to major buyers such as Gen X and Gen Alpha. It is recommended that supermarkets take action today to prepare for the changes necessary to grow their business. YRC consultants for supermarket suggests four recommendations:
- Going “Omnichannel” to increase sales,
- Transforming supermarkets into “Dark Stores
- Retaining loyal customers
- Utilizing technology to go Omnichannel.
For more detailed insights on these recommendations, please refer to the following video: Click Here.