2020 was a turbulent year of the CPG industry as it was for the rest of the world. While COVID-19 disrupted the old ways of doing business, newer approaches to handle the new normal emerged. The most popular changes are the increased automation of supply chains and a greater reliance on data and analytics.
Still, at the heart of the business, these three strategic growth levers remain unchanged – finding new customers, entering new categories and identifying new needs.
1. Finding New Customers
With depressed economies and reductions in earning capacity, consumers are more price sensitive. But it is not a death knell for premium products. Research has shown that while most consumers will gravitate to value products, many others continue to look for the best products for those that want a better lifestyle in these difficult times. Pricing customised to the customer’s needs with different size value packs will play a key role in finding new customers for CPG brands.
2. Entering New Categories
Due to COVID-19, there has been an increase in demand for health and hygiene products. The trend is not going away even with vaccines on the horizon, thanks to the greater awareness of maintaining good health. Many CPG companies have already capitalised on the new demand for new personal and home care brands, and are diversifying their product portfolios.
3. Identifying New Needs
The preference for digital transactions and online shopping has created the new normal, and CPG companies are automating their entire operations to meet the new demand. With lockdowns and social distancing norms, more and more consumers are doing in-home spends, and it is likely to continue well into 2021. This change has worked well for a few categories and not so much for others. Consumer Goods companies impacted by the new changes should find innovative ways to either adapt their current products for home consumption or diversify their portfolios.
At Bizom, we can help you identify the right market insights for your brand and ready your supply chains to take on the new demands of 2021. Reach us at firstname.lastname@example.org for more. #UpgradeToBizom