by Mansi Srivastava
March 20 2024 | 03 min read
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The global FMCG market size was valued at $107.46 bn in 2022 and is poised to grow from $111.39 bn in 2023 to $148.51 bn by 2031, at a CAGR of 3.66% during the forecast period (2024-2031), as per Skyquest.
This vividly illustrates the vast opportunities awaiting the FMCG market on a global scale. With a burgeoning global population reaching 8.2 billion in 2024 and continuing to grow, each individual represents a potential consumer.
This promising scenario paints a positive trajectory for FMCG brands, emphasising the expansive consumer base that exists and foreshadowing a bright and thriving future for the industry.
Why are brands going from local to global?
FMCG brands are increasingly transitioning from local to global for several compelling reasons. It can be because of more demand, lenient tax policies, better rebates, market fluctuations, cheap production, technological advances, brand recognition and many more.
In essence, the move from local to global for FMCG brands is a strategic response to the evolving dynamics of the global marketplace. It enables these brands to harness new opportunities, manage risks more effectively, and position themselves for sustained success in an increasingly interconnected world.
When do you think it is the time for your brand to expand globally?
Brands often can’t decide when is the optimal moment to expand globally. Below are several factors that may aid in making this crucial decision.
- Mostly, brands perform better when the purchaser persona matches the market.
- Expand globally only after a local product-market fit is established and the local presence is strong.
- Go global only if you think you are the best because you will be competing with the best of the world.
- Expand globally only if you have funds to sustain for a definite amount of time.
How FMCG brands can adapt to global supply chains?
Consider these tips to fortify an FMCG brand’s resilience within its global supply chain.
- Diversify Distributor Networks: Have a diverse range of distributors with extensive coverage across all city areas. This will ensure your products reach every customer. Bizom Distribution Management System can be your saviour if you are looking for a tool which helps you manage your distribution.
- Invest in Technology and Data Analytics: Embrace advanced technologies such as AI/ML to enhance visibility, traceability, and efficiency in your supply chain. Data analytics tools can provide insights into demand forecasting, inventory management, and overall supply chain performance, enabling more informed decision-making.
- Strategic Inventory Management: Utilise advanced forecasting techniques such as Auto Replenishment System or Suggested Order to optimise inventory levels. Maintaining the right balance between supply and demand helps prevent overstocking or stock-outs.
- Localised Adaptations: Customise products and marketing strategies to meet the unique preferences and cultural nuances of different regions. This will help in market acceptance of your brand.
- Continuous Monitoring and Evaluation: Implement continuous monitoring and evaluation processes to assess the effectiveness of the supply chain strategy. Regular reviews of reports allow for adjustments and improvements, ensuring alignment with evolving market dynamics.
These strategies can help FMCG companies build a more resilient and adaptable global supply chain that can withstand challenges, capitalise on opportunities, and deliver value to both the business and its customers.
