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FMCG industry

COVID-19 Impact: Market Assessment of the Changing FMCG Industry in the GCC Region

As the coronavirus pandemic hits the world, we can expect ginormous changes in consumer buying behavior. This will have a severe impact on retailers globally. Market assessment experts at Infiniti Research have closely monitored the changing FMCG industry patterns, this article outlines the specific challenges that the coronavirus outbreak could have on the FMCG sector in middle eastern and GCC countries.

GCC countries are already faced with a bleak economic growth pattern and several other economic challenges including sluggish GDP growth, declining oil prices, and regional turbulence. As the governments in countries such as the United Arab Emirates (UAE) and Saudi Arabia prepare to undertake measures to contain COVID-19, several businesses may be at risk. Retail industry experts at Infiniti Research have identified that there will be a huge surge in the demand for industries that fall in the ‘essentials’ bracket including packaged goods, consumer health and personal well-being, and home care products. For several other sectors, the situation could prove to be extremely tough. Infiniti Research has identified some key strategies for companies in GCC and other middle eastern countries to mitigate the adverse effects of COVID-19 on their business.

Companies in the FMCG industry that are more agile and responsive to the changing consumer demands are in a stronger position to recover faster from the existing crisis. Request a free proposal for deeper insights on how COVID-19 could impact your company and key strategies to prevent the crisis from turning catastrophic for your business.

Impact of coronavirus on the FMCG industry

How coronavirus will impact the FMCG industry in the middle east

Prices to remain stable

It is a known fact that middle eastern countries rely heavily on imported goods. From a consumer point of view, there is an increasing worry that retailers may choose to price gauge essential goods due to the current situation where market demand is much greater than the supply. However, governments have ruled this worry as unfounded and have urged retailers across the region to undertake measures to increase supply to meet the heightening demand. Furthermore, since there has been a sudden strengthening of the US dollar, and as several GCC countries are pegged on to it, the chances for prices in the FMCG industry to skyrocket are highly unlikely. However, in the long run, this may be largely dependent on the availability and adequate supply of goods.

Shift towards local production

Consumers are increasingly buying products that have longer shelf life fearing a global manufacturing and supply slowdown. As a result, in countries like UAE, apart from products such as pasta and rice that have a longer shelf life, the snacks and savories category in the FMCG industry has been witnessing steady growth.  In response to rising concerns, some of the top packaged food companies in the middle east have taken to social media to alleviate such growing consumer anxiety relating to product shortage.     

‘Cashless’ to become a prominent trend

The rising panic over coronavirus spread could result in consumers moving towards cashless payments and further stem digital connectivity in the region.   This trend could intensify as a greater number of people are staying indoors and the rise in the number of online prepaid orders. As a result, contactless payment gateways in the middle east can expect a surge in demand.

Single brand and luxury retailers at high risk

Coronavirus spread is expected to impact the sales of single brand and luxury retailers. Entertainment and leisure sectors are also expected to suffer dramatically as consumers will be less likely to purchase expensive tickets and the declining tourism will add on to the woes of companies in this sector. On the contrary, bricks-and-clicks stores like Sephora are likely to benefit from the reduced footfalls in shopping outlets and malls.

Want more insights on how to prepare your business to survive for the impact of the coronavirus outbreak. Get in touch with our market intelligence experts for comprehensive insights.

competitive pricing

A Major FMCG Brand Improved Their Bottom Line Results and Competitiveness with the Help of Competitive Pricing Engagement

Today, we live in an era where the adoption of smart & competitive pricing strategies can catapult new brands and retailers to quick success. At the same time, the failure to project the right brand image through effective pricing can seriously destabilize the prospects of business establishments. ‘Competitive Pricing’ is an essential cog of a product positioning and branding strategy and has a long-lasting impact on customer loyalty and consumer engagement. A robust pricing strategy acts as a catalyst that helps manage profitability while ensuring the brand’s price image reverberates through all its marketing campaigns.  

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Here are a few reasons why competitive pricing can leverage your market success:

  • Helps you stay ahead of the global competition
  • Offers price increment opportunities
  • Improves profit margins

Client’s Background

The client- a leading player in the FMCG industry in the U.S.

The Challenge

Owing to the intense competition from FMCG companies all over the globe, a multibillion-dollar FMCG industry player realized the need to make better pricing decisions to stay ahead of the curve. Needless to say, the competition in the FMCG market is on the rise and leading FMCG industry players are on the constant lookout for new opportunities and pricing frameworks that can help them stay ahead of the competition.

Request a FREE proposal to know how our competitive pricing solutions will help you tackle market challenges.

Our Approach
A detailed assessment of the competitor’s pricing strategies enabled the FMCG industry player to gain detailed insights into the pricing strategies adopted by market leaders. Our experts developed a structured approach to competitive pricing, which played a major role in enhancing the FMCG company’s bottom line. The competitive pricing research methodology leveraged the use of competitive intelligence to gather insights on the competitor’s strategies with regard to their product offerings.

Business Impact

Following the detailed assessment of pricing strategies, a unique competitive pricing strategy was devised to empower the FMCG industry player to differentiate their brand by setting unique prices for their products. The adoption of a holistic, intelligent competitive pricing solution that customarily aligns itself to the company’s business goals and the market dynamics enabled the FMCG industry player to break through the cluttered market space with a unique and convincing proposition in terms of pricing.

The implementation of the new competitive pricing strategy also improved their competitiveness, leading to the generation of $45 million in annual revenue. As a result, the FMCG industry players have surpassed the global competition by successfully capturing a top spot in the global market space by enhancing both customer satisfaction and customer retention levels.

CONTACT US to learn more about our competitive pricing services and their importance for your business.

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