For FMCG firms, it’s time to up their digital marketing game

In the face of a crisis, such as the 2019 coronavirus disease (COVID-19), when everyone is stuck at home and most likely glued to their gadgets, fast-moving consumer goods (FMCG) firms in the Philippines would do well to strengthen their digital marketing, as a study by consulting company Kantar reveals that “digitally enabled shoppers” are the biggest buyers of such products.

According to Kantar’s “Digital Shoppers for Brand Growth” research, digitally enabled shoppers—those who, basically, have internet access—now account for 75 percent of total FMCG sales in the country.

The research looked into the purchasing behavior of these shoppers across 3,000 homes nationwide from January 2016 to June 2019.

Breaking down that total amount, the research found that a digitally enabled shopper spends an average of P38,000 a year on FMCG products—which is P7,000 more than what a consumer with no internet access spends.

Despite being connected, the majority of these shoppers still prefer to purchase items in supermarkets or hypermarkets. According to Kantar, in 2018, this group spent P461 billion worth of FMCG products in physical stores. Milk, fabric cleaners/detergents, bread, coffee, diapers, hair care, biscuits, snacks, frozen meat, seasoning and sauces are the top FMCG products among Filipinos.

By the end of this year, Kantar estimates digitally enabled shoppers will grow the amount of their purchases by 25 percent.

Despite these promising figures, Kantar’s research shows that FMCG brands still have room to grow, as only half (46 percent) of the 300 brands the company tracks registered growth in 2018. While this number increased to 71 percent in 2019, Kantar notes that on average, only 37 percent of these brands sustained their growth during the two-year period.

This means, says Kantar, that FMCG brands need to up their game when engaging digital consumers. “They need to develop and implement digital campaigns that will convince Filipinos, especially those with Internet access, to buy their products,” the report reads.

To achieve this, one key factor is important, says Kantar: data. Companies need data to consistently track the dynamic purchasing behavior of digitally enabled shoppers. Then, there is a need to combine such data, gathered from multiple sources, into a single cohesive map of consumers’ purchasing journey.

Artificial intelligence technology will also come in handy, says Kantar Philippines expert solutions director Ledz Lim, when doing data analytics.

“A harmony of both human and digital elements will help achieve sustainable growth for brands’ products,” Lim adds.—ANNELLE TAYAO-JUEGO