4 Trends That Will Shape CPG in 2022

It’s the end of the financial year! Let’s open the champagne bottles to celebrate the resilience we showed last year.

Still, it’s a busy time for you with 2022 plans, budgets and books. There are new KPIs to chase. The necessity of digital transformation of distribution channels is more urgent than ever. There’s a lot to be done.

The Concern of Outlet Coverage

The one challenge that’s worrying CPG brands the most is their outlet coverage. The pandemic has dented their outlet universes, and they are unsure of the actual reach. How many stores continue to operate? What territories are still functional? What localities have emerged stronger? Where are the business opportunities? 

Brands are turning to mobile tech to survey retailers directly and build a database that will present a clearer picture. We know from experience how easy it is to do so in emerging markets!

What’s Next?

We spoke to our customers and their competitors, brought in our experts and weighed on the trends for 2022. Here are four trends that we think will shape CPG in 2022.

Trend #1: Direct Engagement with Retailers

Both large and mid-sized brands are turning to mobile applications to reach retailers directly. The lockdowns of 2020 showed that empowering retailers to manage their orders and deliveries helped streamline the supply chain better. In times of disruptions, it helped staunch the bleed of inoperative logistics or stalled supply.

Unilever has built a retail app for its ecosystem, and other large brands are doing the same. They see it as an untapped market that will expand their outlet universe and ease distribution bottlenecks.

But engaging directly with retailers is expensive. Additionally, there are margin and pricing pressures that do not alienate consumers to consider. It only increases the cost of distribution. Still, brands are working out the economies of scale while pushing forth their digitisation route to retailers.

Trend #2: Automating Merchandising

CPG businesses allocate significant portions of their budgets and resources to merchandising. The lack of accessible technology meant that tracking and monitoring merchandising at the outlet level is manual. As is the case with any manual undertakings, merchandising reports are rife with errors. They don’t provide brands with reliable intelligence or insights.

The development of IRL tech and sophisticated tracking mechanisms will allow brands to monitor their share of shelves more efficiently. Coupled with auto-replenishment systems, brands can work out a sales strategy that will enable them to exceed their sales targets.

Trend #3: Gamification to Increase Sales

Brands have either expanded their product range or assigned focus products for their sales teams with a mandate to increase the number of lines sold. However, 2020’s disruptions have driven Total Calls (TC) and Productive Calls (PC) ratings into the ground. CPG brands are addressing this challenge with gamification-led incentives to their sales teams.

Gamification increases competition from the instant feedback that it provides through real-time leaderboards and dashboards. Consequently, it improves productivity and builds a culture of entrepreneurship and mentorship within the organisation. The reliance on tech also encourages faster tech adoption among teams.

Trend #4: Driving Numeric & Weighted Distribution

CPG companies have doubled their efforts to drive numeric and weighted distribution. They want their products placed everywhere, including non-traditional channels like HORECA and catering, which have bounced back. 

Businesses are focusing on creating B2B eCommerce marketplaces to increase the width and depth of their outlet coverage. The B2B eComm route will also smoothen any chinks in the ecosystem and provide real-time visibility into supply chains. 

It’s All About the Data

Data has truly come of age in the CPG world. The digitisation journeys of brands point towards large investments in acquiring and managing data. Brands want intelligence and insights into the market potential and opportunities that will enable them to grow their sales exponentially. Only analytics and insights can do that. Expect to see a more data-driven 2022.

Do you agree with our findings? Please write to us at marketing@mobisy.com.

E-Invoicing 

It’s 01 April 2020, and e-invoicing has become for mandatory businesses with a turnover of 50 crores and more.

e-Invoicing or electronic invoicing is a new process of compliance introduced by the GST Network (GSTN). As per the compliance, all B2B invoices need to be authenticated digitally before submitting them to the GST portal. However, it has massively increased the compliance burden on CPG brands and added a host of challenges to their operations. 

Bizom has created a single-click integration that will help businesses submit their invoices through the Bizom DMS. Learn more about it here.

Video: Bizom e-Invoicing Integration

Bizom’s single-click integration enables CPG brands to submit their e-invoices directly from the Bizom Distributor Management System. Watch video >>