Adobe Digital Trends Index

Adobe Commerce uses AI and advanced data sharing capabilities to create end-to-end personalised B2C and B2B commerce experiences from a single platform.

Unfortunately, it took a pandemic to lay bare a clear pattern in how the Fast Moving Consumer Goods (FMCG) industry is evolving. The resulting disruptions to supply channels have accelerated the key trends in marketing that will change how successful companies do business.

It’s the rise of marketplaces and the ability to converge, disseminate and activate data into monetary value. We’re talking about the untold riches that first-party data provides in guiding your future business decisions. It’s the power and control which comes from connecting directly with customers.

“It’s been coming a long time,” said Scott Rigby, chief technology advisor and principal product manager at Adobe. “And we’re now equipping businesses who not only see the massive opportunity it presents but the competitive necessity of maximising their use of e-commerce to create new revenue streams.”

Leading companies are developing brands using customer experience technology to continue to stay at the forefront of consumer expectations. The Adobe Digital Trends Index tracks the movement of customers and their behaviour from a technology perspective. It’s clear that companies who make investments in customer experience technology, commerce being one of them, are continuing to break away year on year.

“The gap between the leaders and the laggards in some cases is around 30 to 40%,” continued Rigby. “There’s also a significant and growing gap between the leaders and the mainstream. There is now an imperative for FMCG to adopt technology, get the foundations right and scale their capability. Because if they don’t – even if they consider themselves to be a fast follower – they will invariably be left behind.”

And now they want to take our cookies away too? With the deprecation of third-party cookies, the ability of FMCG players to build a first-party data strategy has never been more crucial. Without the capability to build their own customer behaviour insights, FMCG companies will lose visibility on customer trends which allow them to manage their business and supply chain effectively. This is achievable through building their own database around the needs of their customers and creating niche marketplaces through D2C digital channels. By connecting directly with consumers (not as target segments, but real people), companies can generate their own lasting and engaged customers and advocates.

It may all seem a bit daunting to some, but here are a few practical steps that FMCG players can take to transition to a D2C model.

• First and foremost, invest in technology that gives you downstream customer data and the ability to transact.

• Build new brands exclusive to your digital channels. RXBar is the ultimate D2C e-commerce story, a new brand that got acquired for $600m, less than five years from inception.

• Explore working with partners who sell products that are complementary to yours. For example, Unilever worked with its competitors in the same marketplace in order to gain first-party enriched data. The company also launched its own D2C marketplace which resulted in a 40% increase in new customer acquisition.

• Leverage new delivery channels to distribute your products. For example, service stations, UberEats, Menulog, or Deliveroo.

“Obviously, D2C needs to be implemented in a way that is sensitive to existing legacy relationships. It offers more flexibility and innovation in creating new brands and products. The resulting data on customer behavioural trends going forward, is vital,” said Rigby. “New revenue streams, the ability to adapt to macro-economic situations as well as richer insights and understandings of your customers, which can drive the rest of your business. It’s a channel no one can afford not to activate.” business.adobe.com