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Beyond the Podium: How The Olympics Fuel FMCG Growth
by Janhavi Sawhney
Aug 8 2024 | 03 min read
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As we reflect on the evolving dynamics of the Fast-Moving Consumer Goods (FMCG) sector, one of the most intriguing trends is the growing influence of sports, particularly the Olympics, on consumer behaviour and market strategies.
The 2024 Paris Olympics isn’t just a global sporting event; it’s a catalyst for change, influencing industries far beyond the realm of athletics. For India’s FMCG sector, the Olympics presents a unique opportunity to capitalise on a wave of consumer enthusiasm, driving growth and innovation across the market.The intersection of sports and FMCG is becoming increasingly pronounced, driving innovation, brand loyalty, and significant shifts in consumer preferences.
Olympics:2024
The 2024 Paris Olympics are expected to significantly impact India’s FMCG sector, catalysing a profound shift towards health and wellness. Manu Bhaker’s double bronze medal win has ignited national pride and driven a surge in athlete endorsements. This Olympic success has not only inspired fellow athletes but also ignited a broader consumer shift towards health and wellness. In India, this growing emphasis on healthier living is projected to transform the health food market into a $30 billion industry by 2026. Notably, 40% of Indian consumers are now willing to invest more in healthier products.
The impact of the Olympics on India’s FMCG sector is a long-standing tradition. Let’s take a nostalgic journey through its previous influence.
Capitalising on Olympic Momentum: A trip down Memory Lane
In India, the Tokyo 2020 Olympics marked a pivotal moment, especially with Neeraj Chopra‘s historic gold medal win in javelin. This victory not only elevated Chopra’s stature but also sparked a wave of national pride that resonated deeply with consumers. Brands quickly recognised this surge in patriotic sentiment, leveraging it to strengthen their market presence.
Post-Olympics 2020, Indian FMCG brands with strong local roots reported a 10-15% increase in sales, particularly in categories such as dairy, snacks, and beverages, directly resulting from strategic campaigns that aligned with national pride and athletic success. For instance, P&G’s (global sponsor for the Olympics in 2012) ‘Thank You Mom’ campaign during the 2012 London Olympics , PepsiCo’s ‘Change the Game’ campaign during Rio 2016, and Coca-Cola’s ‘I Belong Here’ campaign during Tokyo 2020 all capitalised on the Olympic spirit.
Since the 2020 Olympics, sports marketing budgets have risen by 25-30%, leading to a 20% increase in sponsorship deals. Major brands like Johnson & Johnson (J&J), Amrutanjan, and Venky’s have secured long-term partnerships with high-profile athletes such as PV Sindhu, Bajrang Punia, and Manika Batra.
The Beijing 2008 Games marked a turning point with Abhinav Bindra’s historic gold medal, which sparked a surge in consumer interest in sports products. Hindustan Unilever tapped into the Olympic spirit with promotional activities for its Boost energy drink, while brands like Cadbury embraced the occasion by launching special editions of their products to celebrate India‘s achievements. The success also led to a notable increase in sales for protein supplements and energy boosters, as brands like GNC and Himalaya experienced a rise in demand from consumers inspired to emulate athletic success.
Similarly, the Rio 2016 Games, marked by PV Sindhu’s silver medal, sparked a surge in FMCG brand activity, this impact was visible in her partnership with Gatorade for the ‘Sweat More’ Campaign.
Amul’s collaboration with boxing champion Mary Kom through their ‘Kom’ campaign significantly strengthened the brand’s position within the health-conscious segment. Similarly, Under Armour’s 2024 ‘Zidd for More’ campaign, featuring Olympic gold medalist Neeraj Chopra, led to a significant surge in engagement across the brand’s platforms.
Conclusion: The Road Ahead
As we look ahead, it’s clear that the relationship between sports and the FMCG sector will only grow stronger. The synergy between athletic success and consumer engagement offers a unique opportunity for brands to drive growth and innovation. By aligning with the values of fitness, health, and national pride, FMCG companies can continue to resonate with consumers in meaningful ways.
The 2024 Paris Olympics is poised to be another milestone, offering fresh opportunities for brands to leverage the power of sports. As the excitement builds, FMCG companies must stay attuned to these trends, ensuring they remain at the forefront of this dynamic and evolving market. At Bizom, we are eagerly anticipating the new industry trends and impactful campaigns that will emerge from this global event.
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