Triple blade disposable razors supplier provides one blade disposable razor, twin blade razor and triple blade disposable shavers for non-food consumer goods supplier, guestroom amenities wholesaler, supermarket etc. Founded in the year of 2009, WangLi Shaver Manufacturing Company is specialized in manual plastic disposable razors for men’s disposable razor and women’s disposable razor. Our products exported Europe, America, Russia, Middle East, Malaysia and other countries all over the world. Please contact us for more products detail.
McKinsey: 12 trends in subverting the FMCG industry (Ⅰ)
For a long time, the FMCG industry has enjoyed tremendous commercial success. The industry has not only created 23 global top 100 brands, but also maintained a 15% overall return on investment over 40 years. This is due to the widespread application of the five-step approach to value creation created after World War II:
(1) Gain growth and high profits by building popular brands and product innovations;
(2) Establishing close contact with popular retail channels such as supermarkets to reach a wide range of consumers;
(3) Entering the developing market earlier to establish new categories and actively fostering consumer habits;
(4) Establish an operational model that targets the implementation of unified cost control;
(5) Utilize mergers to achieve market integration and new product entry, and use mature models to achieve synergy and promote leap-forward development.
In recent years, the FMCG industry has gradually faded away from the previous aura, and its organic growth rate is only 2.7% after deducting the impact of mergers and acquisitions, exchange rates and inflation. Why can’t the traditional value creation model continue to drive growth in this era? Through in-depth research on the global consumer goods industry, McKinsey found that 12 technology-driven disruptive trends are or are about to break the market structure, leading to the failure of traditional models.
1.Different preferences of the younger generation
The younger generation (generation born in 1980 and beyond) prefers new brands and they think that the new brands are better and more creative. Popular brands and popular channels are no longer attractive to them. Recent research by McKinsey shows that young consumers who are four times more likely to buy than the older generation are reluctant to buy products from “large food companies”. The younger generation prefers to conduct a comprehensive study of products. They resist marketing activities led by brands and like to communicate with others (both friends and family, as well as online opinion leaders and netizens) to understand the brand and products. The younger generation is willing to pay for goods that show their own taste. They prefer the value of the goods, and spend more money on the premise of limited income.
2. Digital marketing
Digital technology is changing the way consumers understand and recognize brands, and traditional marketing is not as effective as it used to be. Most fast-moving consumer goods companies have begun to actively adopt digital technologies. But this work still has a long way to go, especially how to use a lot of data to drive precision marketing and sales.
3. The rapid rise of small brands
Many small consumer goods companies are using digital technology to quickly capture the hearts of younger generations of consumers. High profits, emotional connections with consumers, easy outsourcing of value chains and low freight rates make small brands more successful in the fast-moving consumer goods industry. In addition, more than 4,000 small companies have received $17 billion in venture capital over the past decade. Such huge funds have also helped new brands to rise rapidly. Traditional companies such as P&G and Sephora have also seen these changes, and launched incubators to gain an edge in the competition.
4. Most categories have matured in most markets.
Although innovation is still possible, the opportunity is never quite the same as decades ago. McKinsey’s analysis of FMCG consumption patterns shows that once the median consumer income reaches $30,000, per-capita sales will be flat. This means that leaps and bounds can no longer be promoted by improving grades or increasing popularity.
5. Healthy food really rises
Consumers now want more organic products that are free of sugar, gluten, pesticides and other additives. They started to choose more fresh foods.
6. Internet of Things connected by everything
Although the Internet of Things is still in its infancy, it will certainly have a revolutionary impact on certain categories. For example, in the category of detergents, the Internet of Things will transform consumers’ demand for products into demand for services and completely change the operating mechanism of the industry.
For more information, please continue to follow us.
Triple blade disposable razors supplier WangLi Shaver Manufacturing Company in China, We have more than 15 years industry experience, 160 employees, 2 building and 10,000 square meters workshop, 20 sets plastic injection machines, 10 sets automatically razor cartridge assembly systems and 4 sets packing convoys. Thank you for visiting and looking forward to hearing from you soon.