Genefied helps Enterprise Brands capture 1st party data to further get insights, retarget and build lookalike audiences.
The Fast-Moving Consumer Goods (FMCG) industry in India is witnessing a significant shift that is marked by constant evolution and change. Chief executives of major FMCG companies, including Marico, Dabur, Emami, and Bajaj Consumer, have observed a slowdown in sales within Kirana stores, the traditional backbone of the total FMCG sales. Factors such as fewer product launches compared to e-commerce, a decline in distributor credit, and weakened rural demand have contributed to this challenging scenario.
Recognising the pivotal role Kirana stores play, constituting four-fifths of total FMCG sales in the country, industry leaders are now advocating for a renewed focus on these traditional outlets. For instance, Marico managing director Saugata Gupta emphasises the need to reinvest in general trade to reignite growth, especially given the industry's increased emphasis on e-commerce and modern trade in recent years.
As FMCG industries deal with issues like the drying up of credit from distributors to kirana stores and the resulting inventory crunch, Strategies for Kiranas are the need of the hour. As per the latest insights from FMCG industry experts, they suggest a dual approach to growth, combining traditional trade with the advancements seen in e-commerce and modern trade channels. This holistic strategy aims to address the challenges faced by kirana stores and facilitate sustainable growth.
The challenges faced by FMCG companies are evident in the shrinking credit available to kirana stores, impacting their ability to stock up adequately. This, in turn, has led to a decline in inventory levels, creating a challenging cycle. Despite the surge in e-commerce and modern trade, general trade remains the cornerstone of FMCG sales in India.
In response, companies are reevaluating their product and distribution strategies to revive sales through general trade. Executives are considering the launch of direct-to-consumer brands in Kirana stores, investing in expanding channels such as chemists and cosmetic stores, and ensuring direct distribution to general trade outlets in rural areas.
Companies seek innovative solutions to boost sales and enhance customer loyalty in this changing and adaptation of FMCG. Genefied, an award-winning QR code service provider for loyalty, traceability, and anti-counterfeiting solutions, has emerged as a game-changer for brands like Tropolite, Anmol Biscuits, and Everest Masala in the FMCG industry.
Utilising QR code technology, Genefied's loyalty solutions enable FMCG brands to amplify customer loyalty and streamline trade operations.
Through mechanisms such as loyalty points and scan-and-win campaigns, brands can engage with consumers, fostering a deeper connection.
This innovative approach enhances customer loyalty and addresses challenges faced by Kirana stores by offering a seamless and efficient solution.
As FMCG companies explore the path of general trade sales, Genefied stands out as a reliable partner, empowering brands to overcome challenges and succeed in a dynamic market. The synergy between traditional trade strategies and cutting-edge loyalty solutions ensures a comprehensive and effective approach to fueling growth in the FMCG sector.