Why is AI the Need of The Hour for FMCG and CPG Brands?
The recent years have seen artificial intelligence (AI) taking great strides towards conquering the world. With self-driving cars becoming a reality, our digital moves being tracked by machine learning algorithms, and digital assistants like Siri, Google, Alexa and Cortana finding their ways into millions of homes worldwide, let us address the elephant in the room – AI has become an inevitable part of our daily lives. If you have been following the latest retail trends, you might be well aware that AI is slowly penetrating into the retail industry in the form of self-checkout counters, customer loyalty programs, RFID to track inventory, etc.
Why is AI Important for FMCG And CPG Brands?
Technology has not just made customers lazy but has also made them greedy for more comfort. But businesses have no choice but to satisfy their customer’s expectations at any cost to survive among the cut-throat competition in the market. FMCG and CPG products are inevitable items of purchase for consumers, and therefore the frequency of purchase of these items is also high. But who likes to go through monotonous grocery shopping routines and stand in long queues at supermarkets every other day right? This is where players in the retail industry can employ technology such as AI that would ensure convenience and make shopping an exciting experience for the customers. Also, the growth and wide-spread use of handheld technology such as smartphones and tablets have made it much easier for retail companies to implement these technologies into their business plan and make it more accessible for their target customers.
How is This Going to Transform the Market for FMCG and CPG Brands?
With advanced technologies like AI in place, customers as well as retailers are equally going to reap the benefits. As far as FMCG and CPG goods are concerned, most of the times customers tend to push their shopping schedules or look for alternatives due to the time and energy lost while physically making a purchase. Advance AI technologies, especially voice-activated assistants and self-checkout counters in the retail sector would mean increased ease of shopping for customers, which would eventually result in more sales and a simplified shopping experience for customers. This would ultimately result in better customer experience and higher profits.
How can FMCG and CPG Brands Use AI Technology to their Best Benefit?
Implementing AI for FMCG and CPG products is a much simpler process unlike that for bigger ticket items like a car or a TV? Wonder why? When it comes to FMCG, most of the consumers are brand loyal and prefer sticking to a single brand of a particular category of a product. Therefore, when a particular customer orders a product through a digital assistant, they just need to order by the name of the product category, e.g.: “Siri order toilet paper” and the system would automatically know from past purchase records the brand that the customer uses. Also, AI technology will make product replenishment and the supply chain more efficient for retailer companies.