Everything is meant to evolve. This means the industries in the FMCG industry as well. For this industry, things are advancing at an exponential rate, trying to keep up with the dynamic consumer behaviour. So, let’s see some stats.
A study suggests that 56% of customers are more likely to buy again from a company if they get personalised loyalty rewards and programs. FMCG automation is growing rapidly and so one needs to consider the trends that will shape the industry in the coming years.
So, this blog explores the development that we are likely to see in automation in FMCG in 2024 and beyond.
8 Trends in FMCG Automation in the Future
Trends come and go. Even in the FMCG industry, there are a few developments that are likely to emerge due to the presence of the latest technology and AI and ML. So, here are the best FMCG industry trends.
Strengthening the Root of the FMCG Pipeline- Retailers
One of the changing trends in FMCG industry in India is paying attention to the base of the pyramid. For the FMCG sector, this means the retailers. Earlier the workers could get the benefits through the Quantity Purchase Schemes (QPS), but owing to limited visibility, retailers are missing out on these advantages.
Without scheme automation, it is hard for retailers to stay motivated to promote products and attract consumers.
Here’s where FMCG automation comes in. It has revolutionised the sector by ensuring schemes that retailers can directly access.
There are even QR code-based retailer loyalty program that helps retailers collect their rewards.
This innovative approach empowers retailers to fully leverage QPS and other incentives, ensuring they stay motivated and engaged in promoting the brand through inventive techniques. Rewardify not only empowers retailers but also equips brands with valuable retailer data, enabling personalized user experiences and real-time product insights.
Digital Transforming
One of the other trends that’s shaping the FMCG automation industry is digital transformation. 855 of the daily consumer shop their daily essentials online.
Automation trends include the use of AI and machine learning for demand forecasting, robotic process automation (RPA) for supply chain management, and IoT for real-time inventory tracking.
These technologies enable faster production cycles, reduced operational costs and improved product quality. Additionally, digital tools like e-commerce platforms and data analytics are revolutionising customer engagement and personalisation. As FMCG companies continue to adopt these innovations, they are better equipped to respond to market demands and drive sustainable growth.
Traceability is Important
In recent years, consumers have become more conscious of where the raw materials in their products come from. They want to know how and where these materials were made. Due to this traceability has become a rising FMCG automation trend.
Brands these days have to track where they are sourcing their materials from. Not just that they also have to keep in mind how their sourcing and supply chain is affecting the environment. Consumers are shown to favour brands that have a positive environmental effect.
Let’s see the next FMCG automation trend.
No More Counterfeiting Products
The Fast-moving consumer goods industry is countering fake products using sophisticated automation and digital technologies. Blockchain technology guarantees the authenticity of a product by creating a transparent irreversible path for it from the point of its production to the consumer.
Additionally, IoT devices as well as smart packaging increase traceability thereby allowing real-time tracking and verification. These are complemented by AI-powered image recognition and machine learning algorithms that enable rapid identification of counterfeit goods with higher precision, thus protecting brand integrity, building customer trust, and reducing counterfeit-related revenue loss.
Using this FMCG automation, companies can ensure legitimate products and improve overall supply chain security in their value chains
Sustainable Development
Sustainability is not only the norm but it’s also a key factor for companies to grow, consumers are becoming more environmentally conscious and FMCG companies have to adhere to their preferences.
For instance, avoiding single-use packaging using recycled materials and every-saving production technique are some of the steps that companies can take to ensure best practices. Companies who do this not only strengthen their reputation but also stand out amongst their competitors in the market. They attract the attention of brand-conscious consumers.
Customer Experience: Engaging Them with Virtual and Augmented Reality
Technologies are becoming a part of the FMCG industry. Innovation is helping consumers not only with products but also with experiences. People love interactions, companies can use them to promote their products.
For instance, virtual and augmented reality creates more interactive and engaging experiences. Buyers get involved in the product journey become interested in the brand and look to it. In this manner, they develop positive emotions towards the brand.
Let’s see an example. IKEA uses virtual reality technology to create virtual tours of its stores. Shoppers can take a “walk” through the store, view products and even add furniture in the virtual interiors of their homes to see how they would look.
Another example: L’oreal has used AR technology to let their customers choose cosmetics. Using their mobile apps, customers can try different shades of hair dyes and makeup.
AI-Powered Solutions in FMCG
Innovation and digitisation in AI are changing the ways and processes in FMCG. They improve the production efficiency and streamline supply chains. This makes companies more flexible and easily respond to market changes,
With CRM systems and automated chatbots, companies can also have proper efficiency and improve customer satisfaction. Now the trend is moving towards a deeper and more complex automation. This affects all manufacturers distributors and consumers of FMCG goods
FMCG automation, allows companies to improve customer satisfaction creating a better brand image. The main aim of automation is to optimise improving the customer experience. AI solutions like Machine Learning (ML) or Computer Vision (CV) improve the customer experience enhancing satisfaction and thus increasing customer retention.
Amongst all the latest trends in FMCG industry, there’s another one that’s turning heads.
More and more customers are shopping online. So, let’s see how online platforms are becoming a part of FMCG industries.
Online Platforms Shaping the Future of FMCG E-Commerce
E-commerce continuously growing its presence in the FMCG sector. It has done so by moving the growth of daily goods into the virtual shopping sector. With online platforms, consumers have a convenient environment that allows them to find products easily and compare and choose the best one in just a few clicks.
In the fast-paced lifestyle, such innovations have proved to be truly effective. For instance, many clothing brands allow you to see their range of products and even virtually try them on before you buy them. This is also happening with household items.
With FMCG automation, companies can avoid all the challenges in FMCG industry.
FAQs:FMCG Automation: How 8 Trends Are Shaping the Future
How can automation help the FMCG sector to navigate weather disruptions in supply chains?
Artificial intelligence and predictive analytics in automation of the FMCG industry smoothening out weather disruptions, predicting their consequences, optimising supply chain routes and adjusting inventory levels to prevent any disruption in running of the business or a delay or shortages.
What is the role of IoT in automating the FMCG sector?
In real-time, IoT allows supply tracking and monitoring inventory for FMCG as well as quality control functions and optimal supply chain management.
What are the tasks that need automation in the FMCG industry?
Key activities include Inventory management, demand forecasting, production scheduling, quality control, order processing and supply chain logistics aimed at enhancing efficiency while reducing costs.
Conclusion
FMCG automation is undoubtedly revolutionising the industry, driven by trends like digital transformation, AI, predictive analytics and more. To stay competitive, businesses must incorporate these changes. Qodenext offers cutting-edge supply chain solutions to help FMCG companies navigate this evolving landscape. Are you ready to future-proof your business? Contact Qodenext today!
