Product Customization, Personalisation and Bespoke Offerings To Attract Consumers?
Product Customization, Personalisation and Bespoke Offerings To Attract Consumers?

With increasing competition across product categories, creating unique value propositions is becoming more and more challenging for brands and as a result, customisation, personalisation and bespoke offerings are becoming a norm to attract and retain consumers.

"Do-it-yourself products, especially in the food and beauty segment, reflect consumers' desire to take control of what they eat, drink, and put on their skin," highlights a Deloitte India report.

As per the report, modern consumers are more connected and environmentally conscious. They are more aware of the brands they use, their sourcing and supply chain, the ingredients of the food products they consume, the environmental and social impact of production processes among others.

As a result, consumers are likely to be more mindful in their consumption of products, and they are likely to be more thoughtful in their purchase decisions, it added.

Further, technological advancements, and the growing internet and smartphone penetration have facilitated information exchange from most advanced and developed countries to the remotest rural regions in the country.

This information exchange has allowed varied and distinct consumers to connect, through chatting, social media, vernacular commerce among others and pick up on global and regional trends, thereby influencing their buying decisions.

Speaking at the report launch, Rajat Wahi, Partner, Deloitte Touche Tohmatsu Limited (DTTILP), said: "The pandemic continues to transform consumer buying behaviour, making consumers more digitally inclined and demanding at one end, whilst becoming more health and socially conscious on the other."

Adding to this trend is the evolving technology enabled lifestyle, better access to data, and the work from home and learn from home culture that often may lead to consumption uptick, he noted.

Convenience continues to be an important factor impacting the shopper journey, and as per Deloitte's Global State of Consumer Tracker, 73 percent consumers are ready to spend more on convenience, which is further driving online sales.

"A new dimension in the world of retail known as retailtainment is also emerging, where shopper/consumer experience (CX) has become a key factor for consumers to differentiate between retailers - this implies that retailers and brands need to mine the consumer and shopper data better so as to provide best-in-class CX to their online and offline shoppers," Wahi said.
 

 
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Role of AI in Reshaping the FMCG Sector
Role of AI in Reshaping the FMCG Sector
 

New technological advancements and the growth of the digital space have led various sectors to embrace innovation and adaptation. The fast-moving consumer goods (FMCG) sector, in particular, has rapidly shifted in that direction by joining hands with the e-commerce industry. McKinsey reveals that e-commerce sales in the consumer goods industry are projected to reach $1.8 trillion by 2025, a fourfold increase from the last decade. In the face of intense competition and a high turnover volume in the sector, Artificial Intelligence emerges as a crucial differentiator in helping brands stay ahead of the curve. 

Crucial Role of AI

Artificial Intelligence plays a vital role in bringing consumers closer to the brand. An ongoing challenge within the FMCG industry is for accurate consumer insights to enhance data-backed decision-making. Insights AI combines advanced AI technologies like Emotion AI, Behavior AI, and Generative AI, to ensure brands get in-depth consumer behavior data. These technologies help brands understand the expectations and preferences of target audiences and provide accurate data for efficient decision-making.

As with any other industry, consumer needs and expectations in the FMCG sector are ever-evolving. AI's ability to access and process vast data sets allows brands to tailor their marketing strategies quickly and effectively in line with the requirements of the target audience. With the inclusion of Insights AI, the Indian FMCG industry could witness a significant improvement in the cost and quality of products and services.

Insights AI’s Role in Gauging User Emotions and Behaviors

One of the most crucial aspects of any FMCG product lies in its ability to resonate with the consumer. Here is where understanding the emotions and behaviors of the consumer towards the product becomes important. Insights AI plays a vital role in bringing these insights closer to the brand in several ways. 

Emotion AI for Capturing Sentiments

  • Utilizes Facial Coding and Voice AI to measure and quantify human emotions while interacting with a product.
  • Enables brands to measure and quantify human emotions by capturing facial expressions using webcams and smartphone cameras.
  • Provides nuanced insights into consumer sentiments through tone, pitch, and speech patterns

Behavior AI for Enhanced Engagement

  • Incorporates mouse-tracking and eye-tracking technology for eye-pupil movement and mouse click data.
  • Get metrics on where and how long users looked and interacted with your product to understand their preferences.
  • Invaluable for optimizing interfaces, content placement, and overall user experiences.

Gen AI for Data Analysis

  • Capability to read data and perform comprehensive analysis within a given workspace.
  • Allow users to ask queries about research data available within a repository and obtain rapid insights.

Insights AI in FMCG

Insights AI can create exceptional value for the FMCG brands thriving in e-commerce. 29.1 percent of consumers believe that AI can be better utilized in providing personalized product recommendations, while 33 percent agree on its function to provide optimized search results. It can decode an individual’s purchase history and demographic information to create personalized shopping experiences for its consumers.

Applications of Insights AI in FMCG

As one of the industries undergoing a major change due to Insights AI technologies, let us look at some of the ways it is creating a difference today.

1) Consumer Research: Insights AI can gather data and feedback on the path to consumers' purchase journeys- from looking at a product ad to completing a purchase on a website. It helps provide deep, unbiased insights, which ultimately provide a seamless shopping experience.

2) Marketing Communications: FMCG can benefit immensely in creating targeted and personalized campaigns that truly resonate with their target audience by understanding what consumers like and dislike.

3) Content and Media Testing: Brands can optimize the visual appeal and engagement across various content formats, such as ads, videos, social media posts, etc., by testing content and media pre and post-launch.

4) Pack Design and Shelf Placement Testing: FMCG brands can test their pack designs and shelf placements using Insights AI, which analyzes the shopper’s purchase intent, stopping, holding, and closing powers to make products stand out.

5) New Product Development: Validate your concepts, opinions, and ideas before a new product is developed to ensure that you are not completely relying on your gut instinct and guesswork.

While AI has a huge potential for FMCG brands to scale and improve, its widespread adoption also raises concerns about data privacy and ethical considerations. The heavy reliance on consumer data for insights also means transparency is a key priority in AI. 

AI-led disruption in the FMCG sector is not just a possibility- it is already happening. From optimizing strategies to personalized recommendations, AI is leading the way for the FMCG sector to thrive- in the e-commerce space and beyond. With the continuous evolution of technology and fierce competition in the market, the need for products and brands to stand out is imperative, especially among FMCG players. As such, brands must remain agile, adaptive, and customer-centric in their approach toward AI to deliver meaningful experiences for the end consumers.

Ranjan Kumar, Co-founder & CEO, Entropik

Ranjan Kumar, Founder & CEO, Entropik

Ranjan Kumar is the Founder and CEO of Entropik – research integrated platform powered by AI. He is an engineer from IIT Kharagpur, has invested most of his time working with soft computing, neural computing, and deep learning. Ranjan has worked with distinctive firms like ONGC Ltd and ITC Ltd, after which he turned an entrepreneur with Oyeparty.com in 2012. He has also headed business at Citrus Payments, a fintech company, giving the division exponential growth under his leadership.

 

 

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