Bizom Insights | Bizom https://bizom.com Leaders in Sales Force Automation Sat, 10 Aug 2024 15:41:14 +0000 en-GB hourly 1 https://bizom.com/wp-content/uploads/2024/02/Final-Favicon.png Bizom Insights | Bizom https://bizom.com 32 32 179600903 Beyond the Podium: How The Olympics Fuel FMCG Growth https://bizom.com/beyond-the-podium-how-the-olympics-fuel-fmcg-growth/ Thu, 08 Aug 2024 06:55:49 +0000 https://bizom.com/?p=83408

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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Beyond the Podium: How The Olympics Fuel FMCG Growth

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 ...

Understanding FMCG- The Indonesian Way

The Indonesian market, with its steady year-on-year growth surpassing 5% over the past five quarters and inflation settling at 2-3%, stood out as a focal ...

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Understanding FMCG- The Indonesian Way https://bizom.com/understanding-fmcg-the-indonesian-way/ Thu, 01 Aug 2024 07:27:58 +0000 https://bizom.com/?p=83201

Understanding FMCG- The Indonesian Way

by Mehak Jaggi

Aug 1 2024 | 02 min read

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From sipping tea in India to brewing coffee in Indonesia over a chat, we present another edition of our round table discussion. A room full of industry leaders sharing their insights on the future of real intelligence.

We began by exploring how intelligence can enhance route-to-market (RTM) strategies and help brands flourish in new regions. The Indonesian market, with its steady year-on-year growth surpassing 5% over the past five quarters and inflation settling at 2-3%, stood out as a focal point. Increased consumer confidence has been evident, though post-pandemic challenges like rising living costs have affected purchasing power. Consumers are prioritising spending on utilities and transportation while cutting back on vacation, fashion, and durables—a trend seen across all economic classes. Households continue to spend on FMCG and fresh goods but are adjusting their spending patterns based on individual needs.

Consumer behaviour varies by sector. For in-home purchases, there’s a trend towards downsizing in Home Care and Personal Care (e.g., soaps, shower gels, shampoos, deodorants, and oral hygiene products), but a willingness to spend more in Beauty Care (e.g., makeup, skincare, haircare, and fragrances), presenting opportunities for premiumisation. In Pantry Essentials, value growth stems from price increases as shoppers cope with inflation. In the Baby Care segment, shoppers are upsizing to larger pack sizes for better value.

One of the notable discussions was that brands must recognise that simply offering lower prices isn’t enough. They also need to clearly communicate product benefits, deliver quality, and provide optimal usage benefits to justify premium prices. For instance, when consumers demanded sunscreen, the brand added extended benefits like protection and moisturising. This deep understanding of consumer behaviour drove their success.
Balancing innovation with consumer needs is crucial, given the plethora of market options. For Out-of-House (OOH) consumption, volume growth is driven by snacks and non-dairy beverages, thanks to increased post-pandemic mobility and school activities. Brands must offer affordability and practicality to boost consumption.
Looking ahead, brands should focus on evolving demographics to understand buying patterns. In Indonesia, a slowing population and the rising influence of Next-Gen (GenZ and Millennials) as household decision-makers open up new opportunities. Next-Gen consumers are willing to spend for a higher quality of life and want convenience and availability across channels, including online and speciality stores.
Lastly, we discussed leveraging tech and digital spaces to amplify brand awareness. With 90% of Next-Gen shoppers using YouTube and more than half of FMCG shoppers on TikTok, digital platforms present significant promotional opportunities.

As the 2024 elections approach, the Indonesian macroeconomic situation will be pivotal to consumer spending. Optimism about the economy and cost of living could boost consumer confidence, with projections indicating a modest 5% value growth for the Indonesian FMCG industry, aligning with expected GDP increases.
After formal discussions, we enjoyed an informal networking session over dinner and cocktails. The event was a great success, fostering genuine conversations and meaningful insights.

Stay tuned for our next event in another city. Check the Chai with the CPG Leaders page for details of our upcoming meet.

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Beyond the Podium: How The Olympics Fuel FMCG Growth

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 ...

Understanding FMCG- The Indonesian Way

The Indonesian market, with its steady year-on-year growth surpassing 5% over the past five quarters and inflation settling at 2-3%, stood out as a focal ...

Not just another newsletter about AI in your inbox

This story underscores a vital lesson: artificial intelligence must be complemented by real intelligence.
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Not just another newsletter about AI in your inbox https://bizom.com/not-just-another-newsletter-about-ai-in-your-inbox/ Thu, 18 Jul 2024 07:06:13 +0000 https://bizom.com/?p=82958

Not just another newsletter about AI in your inbox

by Mansi Srivastava

July 18 2024 | 02 min read

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A story of fulfilling KPIs Vs. Creating a REAL impact

A confectionery brand in South India faced a familiar challenge: low sales at a key retail outlet. While this issue was not unique, but what happened during the course of solving this issue is really interesting. The brand strategically placed a visi cooler at the store’s entrance and introduced an AI-driven tool to ensure planogram compliance. The salesman visiting the store was required to regularly verify compliance using this tool, resulting in a significant sales surge within weeks.

However, sales eventually declined. Despite the tool indicating consistent compliance, the real issue emerged only when a new salesman took over the store. He discovered that the store owner had moved the visi cooler to the back due to rain, causing the sales to drop. Unlike his predecessor, who followed KPIs without question, the new salesman used his intuition, diligence and REAL intelligence to uncover the root cause.

This story underscores a vital lesson: artificial intelligence must be complemented by real intelligence. Without the keen insight and proactive problem-solving of individuals, even the most advanced AI tools can fall short, reducing their impact to mere KPI fulfillment.

AI is the need of the hour; but real intelligence makes every minute count

AI has undeniably numerous use cases in the FMCG industry. These use cases significantly reduce human workload while ensuring up to 99% accuracy in the results. Some key areas where AI is extensively utilised include:
  1. Predictive Analytics: Companies use AI to analyse vast amounts of data to predict trends, customer preferences, and buying patterns. This helps in making informed decisions about inventory management, marketing strategies, and product launches.
  2. Supply Chain Optimisation: AI-driven solutions optimise supply chain processes by predicting demand accurately and automating inventory management. This reduces operational costs and enhance overall efficiency.
  3. Personalized Marketing: AI algorithms analyse consumer data to create personalised marketing campaigns, enhancing customer engagement and driving sales.
Despite the emerging use cases, Elad Gil, a notable entrepreneur, investor, and advisor in the tech industry who co-founded Mixer Labs (later acquired by Twitter, where he served as a Vice President), recently stated that 99% of AI companies are unlikely to succeed, but the 1% that do could become quite significant. You can read the full article on Elad Gill’s insights here.

Currently, everyone is racing to integrate AI, but experts observe that only 1% of companies will thrive, and those will be the ones utilising RI with AI, and not purely AI.
Embracing Real Intelligence
Real Intelligence emphasises the importance of human skills and judgement in areas where AI falls short. Here are some ways FMCG companies are integrating Real Intelligence into their operations:
  1. Consumer Insights: While AI can process data, understanding the deeper motivations behind consumer behaviour often requires human intuition. FMCG companies are investing in qualitative research methods, such as focus groups and ethnographic studies, to gain richer insights into consumer needs and preferences.
    Example:Procter & Gamble (P&G) has a dedicated consumer insights team that conducts in-depth interviews and home visits to understand how people use their products. In an article celebrating their 100 years of delivering breakthrough results with data, P&G highlights their culture of home visits to understand customers’ consumption patterns.
  2. Problem-Solving and Adaptability: Humans are better equipped to handle unexpected challenges and adapt to changing circumstances. Real Intelligence is critical for navigating complex, unstructured problems that AI might struggle with.
    Example: During the COVID-19 pandemic, many FMCG companies had to pivot quickly. People at these companies made plans, reallocated resources, and developed new strategies to cope with unprecedented disruptions. This is real intelligence.
  3. Product Suggestion: Many beauty brands have incorporated AI and VR technologies to allow customers to visualise how makeup will look on their faces. However, these AI tools do not account for specific skin conditions or problems. In contrast, beauty advisors in stores can examine your skin and provide personalised product recommendations.
    Example: L’Oréal uses AI on its online platforms to offer customised product suggestions and virtual try-on experiences. Yet, they also maintain beauty advisors at various outlets and shopping malls who can recommend products tailored to your skin type. According to an article by L’Oréal, they have trained over 8k women to become beauty advisors at their stores or start their own beauty business.
The Synergy of AI and RI

The future of the FMCG industry lies in the synergy between AI and RI. By combining the analytical power of AI with human creativity, experience, and judgment, brands can achieve a more holistic approach to innovation and customer engagement.
While AI will continue to play a critical role in driving efficiency and innovation, the irreplaceable value of human intelligence is being recognized and integrated into business strategies. This harmonious blend promises a future where technology and humanity work together to create more meaningful and impactful outcomes in the FMCG sector.

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Beyond the Podium: How The Olympics Fuel FMCG Growth

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 ...

Understanding FMCG- The Indonesian Way

The Indonesian market, with its steady year-on-year growth surpassing 5% over the past five quarters and inflation settling at 2-3%, stood out as a focal ...

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This story underscores a vital lesson: artificial intelligence must be complemented by real intelligence.
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Back of the Pack is the New Front https://bizom.com/back-of-the-pack-is-the-new-front/ Mon, 08 Jul 2024 11:50:37 +0000 https://bizom.com/?p=82788

Back of the Pack is the New Front

by Mehak Jaggi

July 11 2024 | 02 min read

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Years ago, consumers were all about taste—the flavour was king, and the ingredients list was an afterthought. People would pick up a product, take a bite, and decide its worth based solely on the taste experience. But times are changing. Today, the back of the pack is becoming more and more relevant. Shoppers are flipping packages around, eager to read the labels and uncover the story behind the ingredients. It’s no longer just about a delicious bite; it’s about understanding what we put into our bodies.

Snacking hasn’t always been the healthiest habit, with most quick bites being deep-fried or heavily sweetened. In the ever-changing food industry of India, increasing health awareness is bringing a noticeable change: the rise of healthy snacking. India’s healthy snack market is flourishing with various flavours and creative offerings, catering to the growing consumer interest in a healthier lifestyle.

Thus, the healthy snacking market may continue gaining momentum in tier 1 and now in tier 2 and other regions as well in 2024.

Dr. Shilpa Vora, Chief R&D Officer at Marico Ltd, said, “Conscious snacking that strikes a balance between health and taste has been one of the priorities amongst today’s contemporary consumers. The industry is being driven by the working population’s increased inclination for convenience food that is high in nutritional value. Thus, there has been a growing demand for on-the-go snacking options that are ready-to-eat and ready-to-cook, offering flavour, health and ease.”

Similarly, Abhishek Agrawal, Co-Founder of Farmley said, “With the increasing awareness around health and wellness, the trend of healthy snacking is here to stay.”

Along similar lines, we at Bizom did a podcast with Balram Bhattacharjee, Chief Sales Officer (CSO) – India Offline & International Business at Yoga Bar (Sprout Life Foods) where he explains the growth of the healthy snacking segment in India and the rising awareness of consumers about health and wellness.

He reveals how the brand creatively uses readily available kitchen ingredients to produce snacks that are all-natural, preservative-free, and gluten-free without compromising on taste. In an era where consumers are increasingly mindful of their food choices and calorie intake, this approach resonates deeply.

Additionally, he shares how Yoga Bar as a brand is transparent and committed to quality which sets the brand apart in a crowded market. Also, this comes at a time when other legacy brands in the same category resort to deceptive marketing tactics, misleading consumers about the ingredients they use.

Check out our latest podcast to know more about it-

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Beyond the Podium: How The Olympics Fuel FMCG Growth

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 ...

Understanding FMCG- The Indonesian Way

The Indonesian market, with its steady year-on-year growth surpassing 5% over the past five quarters and inflation settling at 2-3%, stood out as a focal ...

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Is AI Ready to Rule? https://bizom.com/is-ai-ready-to-rule/ Fri, 21 Jun 2024 08:28:21 +0000 https://bizom.com/?p=82170

Is AI Ready to Rule?

by Mehak Jaggi

Jun 21 2024 | 02 min read

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Imagine a day in the life of a sales rep in the scorching summer, starting his day at 9 am. He navigates the crowded streets of bustling markets, aiming to visit 30-40 outlets on average. With minimal training, he pitches products to every retailer he meets. The pressure to meet an endless list of KPIs at each outlet feels like climbing Mount Everest daily. After facing multiple rejections, he finally reports his performance to his manager, justifying his efforts. Disheartening, isn’t it?

What can be done in such scenarios?

CPG brands recognise these challenges and strive to assist their downstream users with technology that not only provides insights but also guides them on what steps to take next.

As the world evolves, brands experiment with artificial intelligence (AI) and generative artificial intelligence (GenAI) to automate repetitive processes and enhance efficiency, such as:

Measuring Use Cases of AI:
  1. Supply Chain Automation: Forecasting demand by analysing current inventory, historical data, seasonality, and sales numbers.
  2. Finance: Generate code to analyse credit data and assess customer risk profiles to estimate default and loss probabilities.
  3. Route Optimisation: Reducing logistics costs by planning better routes for sales reps.
  4. Manufacturing: Predicting market demand and increasing order management systems’ overall effectiveness.
  5. IT Systems: Automating IT support ticketing for incident management with chatbots.
As businesses begin to see the benefits of GenAI, they also recognise the diverse risks associated with the technology. In the recent study by McKinsey & Company, these can range from data management risks such as data privacy, bias, or intellectual property (IP) infringement to model management risks, which tend to focus on inaccurate output or lack of explainability. A third big risk category is security and incorrect use. Conversely, respondents are less likely than last year to say their organisations consider workforce and labour displacement to be relevant risks and are not increasing efforts to mitigate them. Infact, inaccuracy—which can affect use cases across the GenAI value chain, ranging from customer journeys and summarisation to coding and creative content—is the only risk that respondents are significantly more likely than last year to say their organisations are actively working to mitigate.

However, the question remains: are users ready to accept this technology, or is there dissatisfaction?

In a recent interview by Ashish Pandey, Global CIO, Dabur India Limited at ETCIO Annual Conclave 2024 mentioned that “only 3 out of 100 CPG stakeholders believe AI is a scalable model. There has been considerable buzz around GenAI since last year, driven by the involvement of OpenAI and Microsoft. Despite this, deploying and scaling AI remains challenging for the industry. While advanced technology is available, its effective use depends on the real intelligence- the users’ ability to adapt and integrate it.” 

Even Ruma Kishore, Director of Digital Transformation, HUL at ETCIO Annual Conclave 2024 mentioned that “there are four ingredients to digital transformation- process, technology, data and people. Looking at the proportion it is 10% digital and 90% people. Hence, it is very important to have people aligned for digital transformation’s success.”

GenAI should not only drive efficiency but also provide insights that change how people view data and make decisions using real intelligence. Insights must guide actionable steps; without a clear next-best action, advanced technology offers limited value.

Understanding technology is secondary but understanding people is the real art. Knowing what works, the organisational cycle and the DNA of success is paramount. When people succeed, the organisation thrives. Hence, AI helps derive insights and corresponding actions from data. However, if the data is flawed, AI cannot function effectively. Ensuring well-defined data collection rules and high data quality is crucial for successful AI and GenAI implementation.

Moreover, AI has more challenges too in the landscape such as:
  1. High Investment: Significant funds are required for infrastructure and computing power to process vast amounts of data.
  2. Bias and Discrimination: AI can produce biased or harmful outcomes based on the data inputs.
  3. Data Privacy and Violation: Ensuring data privacy and preventing violations are critical.
  4. Business Case for AI: A clear business case is essential for AI implementation. Often, prerequisites like clean data are lacking, leading to unsatisfactory results.

Conclusion:

The FMCG industry stands on the brink of a technological revolution with GenAI and other emerging technologies. The potential for increased ROI and operational efficiency is vast. However, technology’s power lies in the hands of those who use it. RI drives successful technology adoption. By prioritising upskilling, ensuring data quality, and viewing technology as an enabler, not a goal. FMCG brands should unlock AI’s full potential, achieving sustainable growth and innovation by giving importance to real intelligence.

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Beyond the Podium: How The Olympics Fuel FMCG Growth

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 ...

Understanding FMCG- The Indonesian Way

The Indonesian market, with its steady year-on-year growth surpassing 5% over the past five quarters and inflation settling at 2-3%, stood out as a focal ...

Not just another newsletter about AI in your inbox

This story underscores a vital lesson: artificial intelligence must be complemented by real intelligence.
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Eid Impact: Product Trends in Indian Retail https://bizom.com/eid-impact-product-trends-in-indian-retail/ Thu, 13 Jun 2024 06:43:14 +0000 https://bizom.com/?p=81944

Eid Impact: Product Trends in Indian Retail

by Animesh Bajpai

Jun 13 2024 | 02 min read

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The retail market serves as a reflection of the social and economic fabric of our nation. With festivals like Eid, brands, distributors and retailers plan their inventory and marketing schemes to utilise the increased demand.

This quick read is a short data backed analysis about how Eid contributes to the demand in certain product categories.

Celebrating Diversity: The Significance of Eid

Eid, one of the most cherished festivals in India, brings communities together in joyous celebration. As India prepares to commemorate this auspicious occasion on 17th June, the retail landscape prepares itself for a surge in demand as per the traditions of the festival.

Hotspots of Demand

Cities like Mumbai, Hyderabad, Lucknow, Kolkata, Ahmedabad, Bengaluru, Srinagar, Aligarh, etc are likely to witness a higher concentrated demand for various product categories as families prepare for festive gatherings and feasts.

Product Categories that might see a bump:

During Eid festivities, few product categories see a rise in demand.

  • Packaged foods: Delightful treats like Seviyan (vermicelli) become staples for sweet indulgence. Srinagar, Lucknow, Kolkata, Delhi and Aligarh, saw a jump in demand, both last year and this year for the months of April & May.
  • Commodities: Consumption of rice generally sees a spike during this time, specially the premium Basmati category. Last year Delhi NCR and Lucknow increased their rice consumption by an average of over 20%. Ahmedabad also saw a surge in essentials like edible oils in the Eid month last year by almost 40%.
  • Spices: Essential spices and masalas add flavour and aroma to traditional Eid dishes. Last year, Kolkata saw a high growth rate of around 25%, however in absolute amounts, no city could beat Hyderabad this year.
  • Apparel and Footwear: Traditional attire and fashionable footwear witnessed a surge in sales as people dressed themselves up for the occasion to meet and greet.
  • Cutlery: Elegant cutlery sets complement the dining experience, adding a touch of sophistication to Eid gatherings. Inevitably products like Knives, dishes, ladles, etc become a go to product category for homemakers to buy.
  • Cosmetics: Fragrances and cosmetics enhance personal grooming and elevate the festive spirit. Mumbai saw a major hike in the sales of perfumes this year in May compared to April.

As we celebrate the diversity of our culture, we would like to acknowledge the efforts taken up by brands and retailers to ensure a happy & joyous mood.

Wishing you and your loved ones a joyous Eid filled with love, prosperity, and togetherness.

* All the numbers reported above are a result of an internal research done on the sales of the specific product categories in a few cities. The sales numbers of April, and May were compared to arrive at the above pointers. Eid might be a major contributor to the surge.

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Beyond the Podium: How The Olympics Fuel FMCG Growth

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 ...

Understanding FMCG- The Indonesian Way

The Indonesian market, with its steady year-on-year growth surpassing 5% over the past five quarters and inflation settling at 2-3%, stood out as a focal ...

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Real or Artificial: Defining True Intelligence https://bizom.com/real-or-artificial-defining-true-intelligence/ Thu, 30 May 2024 07:38:07 +0000 https://bizom.com/?p=81429

Real or Artificial: Defining True Intelligence

by Mehak Jaggi

May 30 2024 | 02 min read

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With over 100+ retail enthusiasts from 7 cities and gathering a plethora of insights in our past events, we wanted to do another edition of Chai with CPG Leaders in the City of Joy- Kolkata. This time we wanted to do something different. With hours of brainstorming internally, on whether the theme should be around FMCG trends or strategies for route-to-market (RTM) or optimising operations. Since Artificial Intelligence (AI) is the talk of the town, we thought why not go forward with it? But does intelligence really have to be artificial? We believe that Real Intelligence (RI) is the true intelligence which holds significant importance in the market and hence we ended up in a room full of industry leaders where intelligence was not artificial.

With this in mind, our roundtable discussion began, focusing on why brands eagerly embrace AI and experiment with it to stay ahead. Some brands, however, emphasised the importance of aligning stakeholders before diving into AI implementation. The key question was whether the market is ready for AI disruption or needs more preparation time and effort.

Brands discussed that the most crucial step is to investigate AI’s role in sales by incorporating users’ inputs through vernacular language in apps, utilising algorithms for recommendations, and addressing business problems for scalability. Additionally, AI should be able to measure KPIs based on individual capabilities.

There’s been a noticeable shift in the roles of sales officers (SOs) and area sales managers (ASMs), who can now measure their team’s KPIs with a click of a button and provide timely nudges. However, this technological advancement also brings fear that AI might eventually replace their jobs. Field users, in particular, are reluctant to integrate such tech into their daily operations. Brands need to communicate effectively, reassuring users that AI will serve as an assistant to enhance their sales efforts, not replace them.

Despite AI’s remarkable advancements and potential, it’s crucial to recognise its limitations. AI’s performance is inherently tied to the quality of the data it is trained on. The AI system will reflect those biases and limitations if the data is biased or incomplete. Moreover, AI lacks true creativity or innovation. While it can generate new ideas and solutions based on existing data, it cannot think outside the box or create original concepts. This is because AI relies on algorithms and patterns, whereas real creativity stems from intuition, inspiration, and imagination. Consequently, AI can enhance real ingenuity but can never replace it.

Thus, RI should be used for planning, and AI for execution. RI will always be the master, with AI as the assistant. AI will likely continue to advance and become more sophisticated, enabling it to perform an even wider range of tasks. However, there will always be tasks and problems that require real input and creativity. Brands need to understand this evolution and educate users on its benefits for scaling up.

After the formal discussions, we gathered for an informal networking session over dinner and cocktails. The event was a resounding success, with real people discussing real ideas to get real insights.

This was a small excerpt from the discussion, though there were also talks about how brands rely on analytics, move towards using integrated platforms, the right time for AI inception, get rural visibility and the era of GPT-powered chatbots.

Stay tuned for our next event in another city. Check the Chai with the CPG Leaders page for details of our upcoming meet. For any queries, write to marketing@bizom.com.

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Beyond the Podium: How The Olympics Fuel FMCG Growth

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 ...

Understanding FMCG- The Indonesian Way

The Indonesian market, with its steady year-on-year growth surpassing 5% over the past five quarters and inflation settling at 2-3%, stood out as a focal ...

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The Mycelial Marketplace: Nature’s Sustainable Supply Chain Solution https://bizom.com/the-mycelial-marketplace-natures-sustainable-supply-chain-solution/ Wed, 22 May 2024 06:30:47 +0000 https://bizom.com/?p=80226

The Mycelial Marketplace: Nature's Sustainable Supply Chain Solution

by Aftab

May 24 2024 | 02 min read

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The Mycelial Marketplace: Nature's Sustainable Supply Chain Solution

In today’s complex world, isn’t it refreshing to find a solution that embraces simplicity?

While AI is all the rage, a simpler go-to-market strategy can still be the key to growth.

A McKinsey study found that companies with simpler plans achieved 20-50% faster growth than those with overly complex ones.

AI Might Be Overkill for FMCG and CPG

AI solutions can be a valiant tool. But in the fast-paced world of FMCG and CPG, they’re about as effective as a carrier pigeon in a drone race.

Remember Occam’s Razor the simplest explanation is usually the right one. This applies to successful Route-to-Market (RTM) strategies just as much as scientific theories.

AI – All Hype, No Help?

Complex AI data, without a practical solution to unlock its potential, is like a treasure map with no “X” marked. Consider a brand’s regional sales slump.

A complex AI solution might recommend a product overhaul, but a simpler RTM approach might reveal a lack of promotion in key stores – a swifter and more cost-effective fix.

Nature’s Lesson in Simplicity

This focus on practical solutions aligns with the fascinating world of the Mycelial Network.

It’s the hidden web of fungal threads that connects trees and plants underground, allowing them to communicate, share resources, and even warn each other of threats – acting as an Organic AI.

Scientists call it the “wood wide web,” and it’s revolutionizing our understanding of nature.

Your Brand and the Mycelial Marketplace

Your target audience acts like a forest – a complex ecosystem of interconnected individuals. But unlike trees, consumers leave behind a digital “mycelium” of browsing history, purchase decisions, and online interactions.

Cultivating Your Brand’s Mycelial Roots

Here’s how RTM technology can help you leverage the mycelial marketplace:

  • Unveiling Hidden Connections: Advanced data analytics, integrated into your RTM strategy, can reveal unseen connections between consumer behaviors. Imagine uncovering a hidden link between your product and a new consumer segment.
  • Real-time Resource Allocation: RTM technology allows you to adjust marketing efforts based on real-time signals from the mycelial marketplace. Think of it as strategically feeding targeted content to receptive consumers.
  • Predictive Growth: By analyzing the mycelium, your RTM strategy can anticipate future trends and consumer desires. This allows you to be prescient in the marketplace.

Remember, this is a living ecosystem, so be prepared to adapt and adjust your approach based on ongoing market research, competitor activity, and customer feedback.

A study by the Aberdeen Group found that companies with a strong RTM strategy achieve a 15% improvement in sales growth and a 10% reduction in customer acquisition costs.

Embrace Simplicity, Unlock Growth

Just like the mycelial network, RTM provides a revolutionary way to connect with your audience. Stop relying on guesswork – unlock the hidden language of consumer desire with a simple and effective RTM strategy. Remember, real intelligence fuels real results.

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Omnichannel: The Path to becoming Omnipotent https://bizom.com/omnichannel-the-path-to-becoming-omnipotent/ Wed, 15 May 2024 08:06:21 +0000 https://bizom.com/?p=79933

Omnichannel: The Path to becoming Omnipotent

by Nisha Panjabi

May 01 2024 | 04 min read

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Board the Omnichannel train now, or lose the game!

Here’s what a typical day in a retail business boardroom looks like:

“How can we ensure a ubiquitous shopping experience for our customers?

Are we ensuring our brand placement at all touchpoints possible?

Are we providing end-to-end seamless shopping experiences?”

It is wild how all these questions align with one retailing concept. All the marketing geeks and strategists want to join the holy crusade and create an omnichannel or seamless presence for their retail brands.

What exactly is the omnichannel presence, and why is it the talk of the town? (read world)

Cohesive, connected and unified efforts of selling, marketing and serving the needs of the customers by contending with them in every possible path is what omni-channel presence is all about. According to the global omnichannel leadership report, around 36% of GenZ consumers and a quarter of global customers prefer an omnichannel retail experience.

Amna, a fitness influencer and enthusiast, browses through a brand that offers healthy snacking options and her regular nutrition bars online, adding several to her shopping cart. Later, she visited a nearby retail store where she discovered the products of the same brand. Due to the presence of cart history and brand recall through her online interaction with the brand, she bought her nutritional supplies for the month through that offline store. This is an example of a transition from online brand interaction resulting in a purchase from a physical store.

This example is the reality that most brands want to create for themselves. In their quest to blur the distinction between online & offline, businesses are taking the giant leap and integrating their channels to reduce friction and make the customer stay on a single platform for a more extended period.

Omnichannel shakes hands with retail 4.0

What will happen when omnichannel retail shakes hands with Retail 4.0?

It will be indeed #CoupleGoals for a Retail Business. Retail 4.0 is the newest version in the valley and is building upon artificial intelligence and machine learning competencies to dive deep into customer preferences, buying patterns, and preferences. This data is further analysed to go that extra mile in the customer experience.

In the new era of retail, technology is changing the game. With virtual and augmented reality, shopping has become an immersive experience for the consumers, thus bridging the gap between digital and physical and turning into a genuinely phygital experience. An IBM report published in 2022 also mentions that while 75% of consumers rely on shopping in-store, they increasingly seek digital immersion to enhance their shopping experiences. Retail 4.0 is fueling the fire to the modern composable commerce approach, which is all about ‘composing’ the customer experience with the best-in-class components. The enormous flexibility offered by this approach can orchestrate systemised integration of Inventory visibility systems, live chats and AI immersion into the checkout processes.

Oh, by the way, everything mentioned is not a bullet in the air. Here’s the snippet from a McKinsey report that hits just the spot.

This omnichannel advantage becomes evident in the above given exhibit comparing the organic customer attraction capabilities of brick-and-mortar retailers and pure-online retailers. Brick-and-mortar retailers generally secure nearly twice the share of organic traffic compared to pure-online players across most categories. Consequently, brick-and-mortar retailers can achieve the same consumer reach while spending considerably less on marketing.

Future of Omnichannel & Retail 4.0

Omnichannel, teamed with Retail 4.0, is not about revamping the overall business presence to multiple channels; it’s always about creating a circular experience for the user with the swift amalgamation of physical stores to an online presence without any breaks in between.

The global omnichannel retail report 2024 talks about a research conducted on 700 plus brands where the findings turned out to be amusing. 60% of the brands under the survey offered services like BORIS & BOPIS and for the retailers located in Australia alone it turned out to be 95%. These findings can be the building blocks for forthcoming retail brands as they define their Go-To-Market strategy and customer touchpoints.

The consumer preferences dynamics are changing faster than ever, especially in the post-pandemic era, and brands need to be on their toes, understand these needs, and offer hyper-personalized services and offerings to achieve instant customer satisfaction. The future of omnichannel retailing is blazing. It will open the door for various new forms of marketing.

Viral memes and music may stay around for a month, but omnichannel retailing, coupled with the charisma of retail 4.0, is a frenzy which is here to stay and thrive.

Retail brands are thus left to choose to join the bandwagon or perish.

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Finding A-un No Kokyu In Supply Chain https://bizom.com/finding-a-un-no-kokyu-in-supply-chain/ Thu, 02 May 2024 07:00:57 +0000 https://bizom.com/?p=79428

Finding A-un No Kokyu In Supply Chain

by Rituparna Nath

May 01 2024 | 03 min read

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Finding A-un No Kokyu In Supply Chain

Think of the person you’re most compatible with in life. Now think of your phone. Are you as compatible with that person as you are with your phone?

Of course, you’re more attached, appreciative, and caring towards that person than your phone. But are you really more compatible?

It’s a weird reality.

Controlling technology is a no-brainer. But how can you possibly control the harmony between you and another person continuously?

Yet it turns out that you can with practice. Japan, one of the world’s leading economies and a master in building business relationships, has termed this A-un No Kokyu – a practice of creating a high level of harmony between individuals without any verbal or physical expression.

Every musician in the world does this. Singers know exactly when the music will change. Guitarists know exactly when the drummer will roll, and so on.

But can you do it too? Not with one person or a gang. But the entire supply chain!

Can you know exactly what your salesman will sell today when he steps foot in the market?

How much do you know about what your consumers want and need right now?

Do you know exactly what your distributors’ biggest business problems are this month?

How can you tell the junior sales manager exactly what to do when sales in a particular market drop?

Do you have a speck of knowledge about why the retailer who’s selling some of your brands for years is now reducing his stock limit?

Is this level of harmony at such a scale even possible?! Moreover, do you even have the bandwidth?

Turns out, if you have a connected digital sales and distribution ecosystem, it is possible with no pressure on your time. Here decisions are not subjective but rather data-based. Hence, actions don’t need to be merely immediate, but intelligent too.

So that a salesman knows exactly which product lines, SKUs, and quantities every store needs, even before the retailer says hello.

You can know and plan your sales according to your consumers’ demands. Distributors have the solutions to their problems right in front of their screens. New managers have advisors with them 24×7, showing them what can go wrong, what is going wrong, and how to fix what.

And even though you haven’t met 5% of your retailers in person, with digital sales tech every movement in the market gets recorded.

600+ leading businesses across APAC, the Middle East, and Africa are trying to build this harmony within their supply chain with 360° RTM technology, because as one of the smartest people to walk this Earth said – The leader is one who, out of the clutter, brings simplicity … out of discord, harmony … and out of difficulty, opportunity. (Albert Einstein)

So are you this kind of leader, or just another leader?

How can your leadership build A-un No Kokyu in your supply chain? Get in touch with RTM experts at marketing@mobisy.com to find out.

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Beyond the Podium: How The Olympics Fuel FMCG Growth

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 ...

Understanding FMCG- The Indonesian Way

The Indonesian market, with its steady year-on-year growth surpassing 5% over the past five quarters and inflation settling at 2-3%, stood out as a focal ...

Not just another newsletter about AI in your inbox

This story underscores a vital lesson: artificial intelligence must be complemented by real intelligence.
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