Covid 19's acceleration of FMCG's digital implementation and key shifts
“Accenture: COVID-19 is a worldwide health and economic disaster which will permanently alter consumer behaviours, resulting in lasting structural changes to the consumer goods industry” so how how can marketing leaders efficiently evolve themselves to optimise media engagement and experiences across their e-commerce and social channels which consumers have migrated to?
“COVID-19 is a worldwide health and economic disaster which will permanently alter consumer behaviours, resulting in lasting structural changes to the consumer goods industry”
In the wake of Covid-19 globally, governments had to enforce lockdowns and this led to the creation of a global quarantine economy. The effects of this newly created economy has undoubtedly accelerated the need for digital implementation across FMCG strategies worldwide. As consumers had to make their purchases remotely- digital was the only channel they could use for shopping and necessities. Accenture notes that “ Consumers are now signing up in mass and building familiarity with new digital services and channels with historically slow adoption rates, in turn speeding up the digital transformation timelines many brands had planned for.”
Which now begets the question: How can marketing leaders efficiently evolve themselves to optimise media engagement and experiences across their e-commerce and social channels which consumers have migrated to?
By understanding key drivers of the shifts in a traditionally non-Digital nor Direct-To-Consumer (DTC) FMCG model as outlined below.
Transformed consumer behaviours
Channel shifts and digital touchpoints
Supply chain transformation
Covid-19 has resulted in transformed consumer behaviours:
Lockdowns during COVID have forced consumers to make purchases remotely, and focus on e-commerce. Less reliance on Brick-and-Mortar retail.
Product scarcity has caused consumers to look past brand preferences and instead focus on core needs, with an increase in channel/retailer switch in search of core needs(Accenture, 2020). Post Covid-19- consumer behaviour has shifted as shoppers now avoid in-store purchases in favour of the safety within online shopping. As COVID has made consumers focus more on physical goods and refrain from human contact, businesses that once relied on the physical presence of services have been affected.
Channel shifts and digital touchpoints as the current crisis has driven consumers to explore other touchpoints for engagement and consumption- Digitally. The shift to eCommerce is accelerating substantially—as is the “move to local” (i.e. buy local-shop local).
The Boston Consulting Group’s report on “Decoding Digital Impact: A $45 Billion Opportunity in FMCG” predicts that in 2020, digital influence will indeed translate to FMCG consumer spending of nearly $45 billion (BCG & Google India, 2017). And in specific categories such as Baby Care & Fragrances, >50% of consumption could be digitally influenced (Refer to the gallery: Decoding the impact of digital influence in FMCG, The Boston Consulting Group 2017.).
In fact, the senior management of these FMCG companies have been surveyed and two-thirds of respondents have identified digitisation as one of their top strategic priorities (Digitalist Magazine, 2018).
Supply chain transformation as current events has exposed the strategic importance of demand sensing and flexible manufacturing close to the consumer. In response to the pandemic, there has been a shift to the online channel and home delivery, with traditional channels shutting down in specific markets requires logistics execution setup.
Fitch Solution’s has noted that DTC has started being implemented by global FMCG players (e.g. Beiersdorf and Unilever) to branch out into and expand their existing strategies. Given the surge in demand for personal care items, cleaning products and staples during and throughout Covid-19. The abrupt surge in demand for online delivery of products has led to worldwide logistics issues and delays for mass grocery retail (MGR) players, delaying consumers from their purchases. (Fitch Solutions, 2020). The gallery reveals the Covid-19 FMCG Direct-to-Consumer initiatives in 2020.
Across the board globally, the message is clear in a post-COVID-19 world for FMCG brands, there is an imminent need to accelerate digital-first customer sales and service models via DTC and B2B2C.
Vieworks can help FMCG marketers and brands to accelerate their digital communications and distribution with a powerful sales enablement tool to build awareness, education, lead generation, and conversions.
Now, more than ever is the time to tap into the growing trend of digital value exchange marketing, the Vieworks platform enables Companies to set up perks to reward relevant target audiences for engaging with marketing video content and sharing data directly back to the brand.
Accenture 2020, Respond, Reset and Renew: Navigating the impact of COVID-19 in Consumer Goods, viewed 17th June 2020
Boston Consultancy Group & Google India 2017, Decoding Digital Impact: A $45 Billion Opportunity in FMCG, viewed 17th June 2020,
Fitch Solutions, 2020, Covid-19 To Accelerate Direct-To-Consumer Model for FMCG, viewed on 17th June 2020,