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Three ways for FMCG brands to win at omnichannel

The explosion of ecommerce and the growth of digital technologies have revolutionized the FMCG sector. Here are three of our top recommendations for what FMCG brands should focus on when launching and evolving an omnichannel approach.

July 06, 2022

4 mins read

Alexandra Smith

The explosion of ecommerce and the growth of digital technologies have revolutionized the FMCG sector, enabling consumers to discover, connect and purchase products at their convenience, anywhere and anytime. In 2020 alone, global online grocery sales grew by 54%, and it is estimated that the online share of the FMCG market will account for 10% of the overall market by 2025 (Clarkson Consulting). 

In an era where shoppers have access to a wide range of online resources, offering an omnichannel experience is crucial for brands. Though we may be in a digital age, the future paints a more complex, omnichannel picture where digital meets physical. Consumers want to be able to move comfortably across different channels before making a purchase, including physical stores, brand websites and social media. For FMCG brands seeking a firm place in such a future, adapting to and embracing omnichannel opportunities, and in turn creating an ecosystem that combines all touchpoints along the buyer journey, is crucial.  

Implementing a successful omnichannel strategy can be complex. Here are three of our top recommendations for what FMCG brands should focus on when launching and evolving an omnichannel approach:  

Foster personalization through direct-to-consumer (DTC)  

Over recent years, consumer brands have been looking for more effective and direct ways to build long-term relationships with customers, not only to improve brand loyalty but to also enhance the opportunity brands have for strategic new product development and personalization of products and services based on their real-life audience. This can be made possible through the first-party data DTC channels deliver to brands. These channels give businesses unique insight into all customer touchpoints, enabling them to craft personalized recommendations, packages or bundles that offer a point of differentiation from competition and help to shape unique value propositions. 

In addition to meeting increasing consumer demand for access to FMCG products online, a DTC approach also enables brands to transcend geographical boundaries, opening doors to new locales and revenue streams across the world. In fact, as reported by Deloitte, more than half of FMCG brands are making significant investments in DTC strategies.  

Maintain price and promotion consistency across channels 

According to PwC, 56% of consumers claim to be price oriented. When researching new products to buy, customers often compare prices and promotions from different brands across multiple channels, hoping to find the most convenient and appealing option for them. As a result, FMCG brands need to ensure that their pricing and promotions are consistent across their direct channels and third-party sellers. This helps build and maintain trust in a brand and manage consumer expectations when purchasing their products across different channels. For those brands operating a DTC site, this can also mean the efforts put behind creating a value-added consumer experience when purchasing directly from the brand that are not undermined by lower prices elsewhere.  

Provide multiple delivery options 

The omnichannel experience doesn’t stop at the checkout. There are many ways consumers receive and return products, including home deliveries, curb-side pickups, locker pickups, last mile delivery and pick up in-store. Giving customers the opportunity to choose from several delivery options can be a great source of competitive advantage for FMCG brands.  

According to Statista, 46% of global consumers now expect to receive their orders within 2-3 days, with 30% expecting the delivery window to be 24 hours. Rising customer expectations of fast and superior delivery experiences have trigged the development of new fulfilment options. Companies can consider shipping products directly from their production sites, large storage sites or from “dark stores” – mini warehouses where products are usually stored, picked up, and shipped directly to consumers. Alternatively, brands can consider pop-up nodes. These can be either containers, trucks or vans driving around the city, holding inventory and delivering products to consumers who order via an app (McKinsey).  

The journey to omnichannel success has many paths and can take different shapes from one brand to another. For FMCG brands seeking to capitalise on such new opportunities, these are just three of many pieces of the omnichannel puzzle. To learn more about what FMCG brands should focus on when launching and evolving an omnichannel approach, download our latest report here

THG Ingenuity has helped many FMCG brands, including Hotel Chocolat, Coca Cola and Vita Coco, accelerate their DTC journeys and grow their digital operations seamlessly and flexibly with our end-to-end ecommerce solution. Contact us for more information on how THG Ingenuity can support your business’s digital transformation journey. 

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