From Physical Shelves
to Digital Carts: FMCG’s Remarkable Transition
The Evolution of FMCG
‘Fast Moving Consumer Goods’ (known as ‘FMCG’, are non-durable household goods such as packaged foods, beverages, toiletries, etc.) have been a staple on retail store shelves since the very first store.
As the name suggests, the FMCG industry moves fast — products sell quickly, they’re delivered
constantly, restocked daily (if not multiple times a day), and the consumer expects them to be
readily available at numerous retail locations.
In recent years, these high-speed retail movements made this industry less than ideal for ecommerce.
Until recently, selling FMCG online in a ‘direct-to-consumer model’ made little sense, not only because the technology to handle such rapid sales, restocking and delivery wasn’t what it needed to be, but also because retailers didn’t need to go to customers because the consumers always came to where FMCG brands were.
That was until COVID changed shopping
habits and customer behavior forever.
The global COVID pandemic crushed large sectors of the retail industry. However, retailers that had already established a solid ecommerce foundation could rebound much faster than others; some even saw record profits due to their online preparedness.
While the impact of the pandemic on the FMCG industry varied depending on factors such as region, product category, and supply chains, some packaged-goods sectors experienced a surge in demand due to consumer stockpiling, while others faced significant challenges, especially those with a heavy reliance on out-of-home consumption and complicated distribution channels.
The consumer-packaged goods industry in the US alone lost $82 billion in sales during the global pandemic.
Taking a ‘human-centered’, ‘mobile first’, creative content approach, BORN Group implements
leading industry standards and best-in-class technology to deliver award winning ecommerce sites.
BORN’s team of digital experience experts rigorously analyze best practices, consumer trends, new
technology offerings, customer expectations and user experience/personalization into consideration
when designing and ‘future proofing’ ecommerce sites.
BORN Group has over a decade of experience helping global FMCG brands cross the ‘physical shelves
to digital cart’ divide.
Top Issues & Trends
If your FMCG brand is looking to diversify sales channels and grow consumer engagement this year, these are the top issues and trends you should know.
The good news is
that signs point to a
full recovery in the
FMCG industry.
The latest report on the
FMCG industry shows a market valued at $11,490.9 billion (USD) in 2021, and is estimated to reach $18,939.4 billion by 2031.
OREO: A BORN XDS Case Study
In an effort to improve online sales and conversion rates, the globally iconic cookie brand ‘OREO’ (owned by Mondelez) came to BORN Group just before the COVID pandemic.
OREO had the foresight to see that by increasing their ecommerce efficiency and improving the UI/UX
of their online store they could help bolster access to their products, increase profits, meet consumer
demands and even create new demand with new offerings.
At the time their online sales were stagnant and consumer engagement was poor, mostly because their customers purchased OREO cookies directly off the shelf through traditional FMCG retail channels —
there was no drive to go online for purchases.
OREO wanted to change their consumer’s behavior, as such, they knew they needed a unique sales
proposition to drive customers to their online store.
In order to achieve this, they would need a new, state-of-the-art, trend-setting online store.
BORN Group’s designers and engineers performed an intensive investigation into
OREO’s consumer base and the operational
and technical aspects of their online store. Through this discovery process BORN not
only uncovered several technical issues affecting the site’s performance but also discovered unique insights into their
brand’s consumers.
Armed with this new information BORN developed a new, globally recognized, award- winning ecommerce site — utilizing key FMCG trends of: Personalization, Influencer and Social Media Marketability, along with Omnichannel Retailing and Mobile Commerce.
BORN developed this new system that allows OREO’s customers to choose their own cookie 'creme'
colors, decorate cookies with sprinkles or fudge, or even top their customized treats with personal
photos or messages.
This new unique and engaging customization process is not available as an in-store retail option
and has given consumers a reason to order OREO cookies online, thus improving sales and consumer engagement — making OREO a well known ‘go-to’, for unique personalized products for special
occasions, gifts and fun!
Contents
The Evolution of FMCG
OREO: A BORN XDS Case Study
Top Issues & Trends
Conclusion
Download Full Version
This site is to show off the
key points of our case study. Download the full print-ready version here.
This shift in focus to online direct-to-consumer sales
has become the main action plan in 2023 for a lot of
big brands in the world of FMCG.
Back to Top
The bad news is, the consumer behaviors that FMCG
brands have historically based their sales and marketing strategy on have now vastly changed!
Omnichannel Retailing
01
FMCG brands must integrate their physical stores with online platforms. These sales channels can create new ways to engage with consumers, respond to product feedback and even develop automatic recurring sales options through websites, mobile apps, and social media.
Rollover each trend to read more
Real-time price comparisons are now more accessible, leading consumers to be more price-sensitive
than ever before, the abundance of product information and customer reviews has created a more empowered consumer and the convenience of online shopping has changed how, when and where customers can be reached.
As a result, FMCG companies need to be sure they focus on comparative and competitive pricing,
improving product information, growing positive consumer feedback, and building a strong online
presence to maintain and grow market share in the new ecommerce landscape.
As the world rebounds from the pandemic, smart retailers are shoring up their online sales strategy
to better diversify the channels through which they can deliver their goods to consumers.
Nonetheless, transitioning consumer packaged goods sales to an online ecommerce model requires a smart, strategic action plan and an in-depth knowledge of today’s consumers and technology trends and demands.
Staying ahead
of the digital retail revolution demands consistent innovation.
Retail digital transformation is essential for staying competitive in today’s fast-paced market.
BORN Group has extensive experience in retail business solutions and supports over 90 clients
globally — catering to their ever-evolving needs. Knowing that speed is key for success within
this changing environment, we ensure our clients achieve cost savings, optimized performance,
and improved efficiencies at pace and scale.
If your FMCG brand is looking to close the consumer gap between ‘store shelves’ and ‘digital
carts', BORN Group would love to speak with you and walk you through our award-winning
steps to digital ecommerce transformation.
This is true to the work we did with OREO.
Subscription Models
Subscription-based ecommerce models have gained popularity in FMCG because they offer customers convenience and savings with recurring deliveries for essential items like groceries, toiletries, and household products.
Personalization and Recommendation Engines
02
FMCG brands are leveraging customer data to offer personalized shopping experiences. Advanced recommendation engines analyze customer behavior and preferences to suggest products tailored to individual interests, improving customer satisfaction and increasing sales.
03
AI and Machine Learning
06
FMCG companies are utilizing artificial intelligence and machine learning technology to optimize supply chain management,
demand forecasting, and inventory management. These technologies help reduce costs, minimize wastage, and improve overall efficiency and consumer satisfaction.
Voice Commerce
05
The rise of voice assistants and ‘smart speakers’ has opened opportunities for FMCG brands to implement voice commerce strategies. Voice-enabled devices can facilitate easy and quick reordering of products, making the shopping process more convenient for consumers.
Sustainable and Eco-Friendly Initiatives
04
Consumers are increasingly conscious of environmental issues. FMCG brands are responding by promoting eco-friendly products, sustainable packaging, and adopting environmentally responsible practices, which also resonates with online shoppers.
Environment, Social
& Governance
09
Studies show most shoppers are more likely to buy from brands addressing Environment, Social & Governance (ESG) issues as part of their business goals. Whether supporting issues such as, diversity, data protection/privacy, human rights, non-profit donations
and political lobbying, consumers want to support brands that share their beliefs.
Same-Day and Last-Mile Delivery
08
Fast and efficient delivery
options have become crucial for ecommerce success. FMCG
brands are investing in logistics
to offer same-day or last-mile delivery services, meeting the increasing demand for speedy order fulfillment.
Augmented Reality & Virtual Reality
07
AR and VR technologies are being used to enhance the online shopping experience for FMCG customers. Virtual try-ons and interactive experiences allow customers to visualize products before making a purchase decision.
Get in Touch.
Contact BORN XDS Global
Download Full Version
This site is to show off the
key points of our case study. Download the full print-ready version here.
Oreo’s new online
store has helped
set the ‘new
standard’ for online
personalization with
their ‘OREOiD’ platform.
OREO: A BORN XDS Case Study
In an effort to improve their online sales and conversion rates, the globally iconic cookie brand ‘OREO’ (owned by Mondelez) came
to BORN Group just before the pandemic.
OREO had the foresight to see that by increasing their ecommerce efficiency and improving the UI/UX of their online store they could help bolster access to their products, increase profits, meet consumer demands and even create new demand with new offerings.
At the time their online sales were stagnant and consumer engagement was poor, mostly because their customers purchased OREO cookies directly off the shelf through traditional FMCG retail channels — there was no drive to go online for purchases.
OREO wanted to change their consumer’s behavior, as such, they knew they needed a unique sales proposition to drive customers to their online store.
The Evolution
of FMCG
Fast Moving Consumer Goods’
(known as ‘FMCG’, are non-
durable household goods such
as packaged foods, beverages, toiletries, etc.) have been a staple on retail store shelves since the very first store.
As the name suggests, the FMCG industry moves fast — products sell quickly, they’re delivered constantly, restocked daily (if not multiple times a day), and the consumer expects them to be readily available at numerous retail locations.
In recent years, these high-speed retail movements made this industry less than
ideal for ecommerce.
Until recently, selling FMCG online in a ‘direct-to-consumer model’ made little sense, not only because the technology to handle such rapid sales, restocking and delivery wasn’t what
it needed to be, but also because retailers
didn’t need to go to customers because the consumers always came to where FMCG brands were.
That was until COVID changed shopping
habits and customer behavior forever.
The consumer-packaged goods industry in the US alone lost $82 billion in sales during the global pandemic.
The good news is
that signs point to a full recovery in the FMCG industry.
BORN Group’s designers and engineers performed an intensive investigation into OREO’s consumer base and the operational and technical aspects of their online store. Through this discovery process BORN not only uncovered several technical issues affecting the site’s performance but also discovered unique insights into their
brand’s consumers.
Armed with this new information BORN developed a new, globally recognized, award- winning ecommerce site — utilizing key FMCG trends of: Personalization, Influencer and Social Media Marketability, along with Omnichannel Retailing and
Mobile Commerce.
In order to achieve this, they would need a new, state-of-the-art, trend-setting online store.
Contents
Conclusion
Top Issues & Trends
OREO: BORN XDS Case Study
The Evolution of FMCG
Download Full Version
This site is to show off the key points of our case study. Download the full print-ready version here.
The bad news is, the consumer behaviors that FMCG brands have historically based their
sales and marketing strategy on have now
vastly changed!
This shift in focus to online direct-to-consumer sales
has become the main action plan in 2023 for
a lot of big brands in the world of FMCG.
Retail digital transformation is essential for staying competitive in today’s fast-paced market. BORN Group has extensive experience in retail business solutions
and supports over 90 clients globally — catering to their ever-evolving needs. Knowing that speed is key for success within this changing environment, we ensure our clients achieve cost savings, optimized performance, and improved efficiencies at pace and scale.
If your FMCG brand is looking to close
the consumer gap between ‘store shelves’ and ‘digital carts', BORN Group would love to speak with you and walk you through our award-winning steps to digital ecommerce transformation.
Oreo’s new online
store has helped set the ‘new standard’ for online personalization with their ‘OREOiD’ platform.
From Physical Shelves to Digital Carts: FMCG’s Remarkable Transition
The global COVID pandemic crushed large sectors of the retail industry. However, retailers that had already established a solid ecommerce foundation were able to rebound much faster than others; some even saw record profits due to their online preparedness.
While the impact of the pandemic on the FMCG industry varied depending on factors such as region, product category, and supply chains, some packaged goods sectors experienced a surge in demand due to consumer stockpiling while others faced significant challenges, especially those with a heavy reliance on out-of-home consumption and complicated distribution channels.
Top Issues
& Trends to Look for
If your FMCG brand is looking
to improve online sales this
year, these are the top issues
and trends you should know.
Use the arrows to view each trend
The latest report on the
FMCG industry shows a market valued at $11,490.9 billion (USD) in 2021, and is estimated to reach $18,939.4 billion by 2031.
Real-time price comparisons are now more accessible, leading consumers to be more price-sensitive than ever before, the abundance of product information and customer reviews has created a more empowered consumer
and the convenience of online shopping has changed how, when and where customers
can be reached.
As a result, FMCG companies need to be sure they focus on comparative and competitive pricing, improving product information, growing positive consumer feedback, and building a strong online presence to maintain and grow market share in the new ecommerce landscape.
As the world rebounds from the pandemic, smart retailers are shoring up their online
sales strategy to better diversify the channels through which they can deliver their goods
to consumers.
Nonetheless, transitioning consumer packaged goods sales to an online ecommerce model requires a smart, strategic action plan and an in-depth knowledge of today’s consumers and technology trends and demands.
BORN Group has over a decade of experience helping global FMCG brands cross the ‘physical shelves to digital cart’ divide.
Taking a ‘human-centered’, ‘mobile first’,
creative content approach, BORN Group implements leading industry standards
and best-in-class technology to deliver
award winning ecommerce sites.
BORN’s team of digital experience experts rigorously analyze best practices, consumer trends, new technology offerings, customer expectations and user experience/ personal-ization into consideration when designing
and ‘future proofing’ ecommerce sites.
This is true to the work
we did with OREO.
BORN developed this new system that allows OREO’s customers to choose their own cookie 'creme' colors, decorate cookies with sprinkles or fudge, or even top their customized treats with personal photos or messages.
This new unique and engaging customization process is not available
as an in-store retail option and has given consumers a reason to order OREO cookies online, thus improving sales
and consumer engagement — making OREO a well known ‘go-to’, for unique personalized products for special occasions, gifts and fun!
Staying ahead of
the digital retail revolution demands consistent innovation.
Back to Top
Get in Touch.
Download Full Version
This site is to show off the
key points of our case study. Download the full print-ready version here.
Omnichannel Retailing
01
FMCG brands must adopt an omnichannel approach, integrating their physical stores with all online platforms! These new sales channels create new ways to engage with consumers, respond to product feedback and reviews and even develop automatic recurring sales with options to purchase through websites, mobile apps, social media, and in-store.
Environment, Social, and Governance
09
Studies show most shoppers are more likely to buy from brands addressing 'ESG issues' as part of their business goals, whether through initiatives addressing water scarcity, gender and diversity, data protection and privacy, human rights, or donations and political lobbying, to mention just a few.
Same-Day & Last-Mile Delivery
08
Fast and efficient delivery options have become crucial for ecommerce success. FMCG brands are investing in logistics
to offer same-day or last-mile delivery services, meeting the increasing demand for speedy order fulfillment.
Augmented Reality & Virtual Reality
07
AR and VR technologies are being
used to enhance the online shopping experience for FMCG customers. Virtual try-ons and interactive experiences allow customers to visualize products before making a purchase decision.
AI and Machine Learning
06
FMCG companies are utilizing artificial intelligence and machine learning algorithms to optimize supply chain management, demand forecasting,
and inventory management. These technologies help reduce costs, minimize wastage, and improve overall efficiency, ensuring the products will always be
there for the customer— which builds brand loyalty, and customer satisfaction.
Voice Commerce
05
The rise of voice assistants and ‘smart speakers’ has opened opportunities
for FMCG brands to implement voice commerce strategies. Voice-enabled devices can facilitate easy and quick reordering of products, making the shopping process more convenient
for consumers.
Sustainable and Eco-Friendly Initiatives
04
Consumers are increasingly conscious of environmental issues. FMCG brands are responding by promoting eco-friendly products, sustainable packaging, and adopting environmentally responsible practices, which also resonates with online shoppers.
Subscription Models
03
Subscription-based ecommerce models have gained popularity in the FMCG sector. Brands are offering customers the convenience of recurring deliveries for essential items like groceries, toiletries,
and household products. These are often paired with special deals for subscribers, making it even more attractive.
Personalization and Recommendation Engines
02
FMCG brands are leveraging customer data to offer personalized shopping experiences. Advanced recommendation engines analyze customer behavior and preferences to suggest products tailored to individual interests, improving customer satisfaction and increasing sales.
Contact BORN XDS Global
