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Time for APAC FMCG Companies to Buckle Up
In a research made by Bain & Company, lesser than 20 percent of the Turbocharging Consumer Product brands outgrow their categories in the APAC region. Irrespective of the rapid development in the APAC region, there is a low-growth in the market. To compete in the APAC market, brands need to adapt themselves to the ever-changing trends and demands.
Accelerating, combined with a few basic challenges, serve as obstacles Asian consumers have become more digitally connected and are ready to spend extra for better convenience. With this digital connection, online sales have increased, transforming the way brands talk to consumers to influence purchase decisions. Moreover, the highly fragmented distribution channels of the region along with bifurcated demand make it difficult to penetrate in the household. This accelerating market change has become the bottleneck for brands aiming to achieve sustainable growth in developing Asia.
Lot of brands under-invests when it comes to learning the basics that need to support the big decision. A company can gain success only when it knows its position and invests according to it to upgrade progress. Companies can also increase their growth by putting out the right brand message which will be in consumers' long-term memories. It is very important to understand the guiding principles for building high-quality brand memory.
These companies are offering multi-tiered distribution network while collaborating with hundreds of wholesalers in low-density rural areas, which not only influences several outlets but also helps penetrate across outlets, maintaining a sustainable cost to serve.