![]() One way of providing personalized experience is by offering personalized promotions. 80% of consumers are more likely to make a purchase from a brand that provides personalized experience. For customers, it is way easier to compare prices online, therefore FMCG DTC ecommerce stores have to offer great deals to stay competitive and keep the customers loyal. Last but not least, customers expect personalized treatment. Second of all, with plenty of new DTC FMCG brands popping up and FMCG brands moving to DTC models, the digital competition is growing fierce, to say the least. Every fifth FMCG product was sold with a discount in 2020. FMCG brands have always competed aggressively on prices. Why are promotions important for FMCG brands selling directly to customers?įirst of all, customers are very price-sensitive when it comes to consumer packaged goods, as FMCG products make up a major part of their monthly spendings. You can read on why and how to move to DTC sales as a manufacturer in our article. ![]() There are plenty of benefits for manufacturers from moving their sales DTC. Some of the big, FMCG companies that opened direct to consumer channels include, among others, MARS, Clorox, PepsiCo, Procter & Gamble, Nestle, Mondelez, Unilever and Heinz. Recently, their market shares shrunk to 50%, mainly due to two DTC competitors who entered the market – Harry’s and Dollar Shave Club. For example, Gillette used to own 70% of the US market in 2010. Research suggests that DTC sales will grow further by 27.5% for the food and drinks industry between 20.ĭTC brands are stealing the market share from big, established FMCG companies, forcing them to innovate and open their own direct-to-consumer channels (or acquire the DTC brands). Overall, in 2020, the DTC market size saw a 24.3% increase year over year. 44% of consumers say they plan to do more of their grocery shopping online in 20. Ecommerce is estimated to make up 10% to 12% of global FMCG sales by 2022, according to Nielsen.Ĭustomers tend to turn to DTC brands as they search for products online. ![]() Nowadays, customers are purchasing more FMCG products online than before and the COVID-19 pandemic has accelerated this shift. These include, for example:įMCG industry is going direct to consumerįMCG brands were traditionally big manufacturers, selling via brick-and-mortar retailers. Personalized Promotions in the Direct to Consumer FMCG Sector What are FMCG products?įast-moving consumer goods (FMCG) are products that are sold quickly and at a relatively low cost. ![]()
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