As 2019 comes to an end, Ball and Hoolahan look back at 2019’s trends and focus ahead to what 2020 has in store for the FCMG and Retail industry.
The popularity of online shopping has been on a massive trajectory for the past few years, and in 2019 it was no different. According to DKSH, online sales are growing 4 times faster than offline sales and E-Commerce is expected to double in size by 2024. In turn, businesses are taking a more proactive approach to their marketing strategies, with many FCMG business adopting an omnichannel approach for the coming year to remain competitive in the industry.
The requirement for convenient, ready to consume products are essential to the everyday consumer, leading an on-the-go lifestyle. The rising culture of delivery apps such as Deliveroo and UberEats, means consumers no longer have to compromise on where they buy or eat their products. This lifestyle dynamic must be considered by firms in the coming year to meet the demand of product convenience. Firms must also get creative with the ways in which they advertise or provide their products. Delivery apps and services have evolved massively in 2019, and will continue to evolve in 2020, so firms must ensure they are not left out in the cold.
Companies in 2019 have acknowledged the value of utilising their brand and customer engagement, to promote consumer loyalty in their business. Loyalty programs like Amazon Prime and Sephora Beauty Insider encourage customers to sign up and shop solely with them for certain products, offering savings and benefits in return. These innovative schemes have been a great success in 2019, with Sephora confirming that their program accounts for 80% of their overall annual sales. In 2020 firms must consider what innovation they can introduce into their brand to encourage customer loyalty.
The sustainability of products has been called into question much more in 2019, as consumers have become far more aware of the challenges and problems faced on a global stage. From the sourcing of ingredients to packaging and delivery, each aspect of your production must show an awareness of the issues at hand. As more laws and regulations are implemented throughout the next few years, it will pay dividends to be ahead of the curve when considering your firm’s sustainability efforts.
In 2020, firms should consider their brand awareness, the continued spread of digitalisation, product convenience and sustainability. Next year will be filled with challenges and emergences throughout the industry, and it will be as important as ever to stay ahead of the curve to remain competitive in the market.
Ball and Hoolahan are industry-leading experts in the recruitment of FCMG and Retail personnel. Speak to an advisor to find out how we can help your firm with your hiring needs in 2020.