Page 34 - HPIC-Magazine (Feb-2021)

Special Article Special Article

Fast-moving consumer goods 2025: Five strategic Perils from phony promotions

pillars to build your growth pipeline Today, people all over the world

spend a good amount of money on
Fast-moving consumer goods lization is redefining industry stan- fundamentals are questioned and less
(FMCG) companies are shaping their dards. Microbiome-based technologies, protective of traditional players. Bar- cosmetics. Modern day cosmetics
claim to improve human skin, hair,
growth more than ever through con- predictive data analytics, DNA- and riers to entry are falling, and creative body, etc., with promises many times
stant innovation and the implementa- RNA-based diagnostics help formulate digital start-ups threaten the biggest going beyond just cosmetic claims.
tion of new technologies to serve their and produce the most adapted solution historical players. Business model in- Some typical examples include pro-
consumers better. for all of us. This need for personaliza- novations are everywhere. Online sub- ducts for treating acne, dandruff, hair
tion is creating huge challenges for scription business models, data-centric
This traditional sector is at the traditional FMCG players. The impacts marketplaces, and direct-to-consumer restoration, and promises to increase
heart of powerful industry convergen- on sourcing, supply chain manage- approaches are just a few. collagen and elastin production that
ces. Traditional value chains are im- ment, real-time production, packaging, results in a more elastic, firmer skin
pacted by transformative mega trends, distribution, marketing and sales pro- Emerging FMCG players focus on with lower number of wrinkles.
disruptive technologies, and new busi- cesses are critical. data, customization, customer engage- Sometimes, commercials advertise-
ness models that will reshape them ment and experience to balance the ments claim reduction of inflamma-
faster than expected. Sustainability financial power of top traditional pla- tion, avert facial muscle contractions,
and regenerate cells by boosting the
Five strategic pillars will support Consumers of the future will ex- yers. They are building communities activity of genes, thereby giving simi-
and clubs to engage their “members”
the FMCG industry in the next five pect digital, personalized, but also on a long-term journey. The objective is lar results as injections or surgery.
years: digitization, personalization, sustainable products. Sustainability is to build sustainable growth leveraging Some promise to treat medical condi-
sustainability, new business models already part of FMCG CEOs’ agendas. recurrent business models and reve- tions such as acne, rosacea, eczema
and deglobalization. The industry is focused on innovating, nue streams. The vision is to deliver and psoriasis.
producing, and developing sustain-
Digitization ably. Carbon abatement strategies, custom solutions with added value Definitions insects which cause disease in systems of medicine, specified in the
Digitization is amongst the most alternative materials and feedstocks, services enhanced with digital platforms. human beings or animals, as may First Schedule.
“Cosmetic” means any article in-
disruptive trends for traditional FMCG natural ingredients, green packaging Just selling a product is no longer suf- tended to be rubbed, poured, sprin- be specified from time to time by Law and its practical implementa-
players. From R&D to distribution, each and socially responsible products will ficient. Once consumers are on board, kled or sprayed on, or introduced into, the Central Government by noti- tion
building block of the value chain will continue to structure the sector. How- the next business objective is brand fication in the Official Gazette.
be deeply impacted. AI, data analytics, ever, sustainability is complex. The affection, customer retention, and pro- or otherwise applied to, the human 3. All substances intended for use The law does not require FDA
body or any part thereof, for cleans-
IoT, robotics, machine learning, RPA next generation of consumers expects duct democratization. ing, beautifying, promoting attrac- as components of a drug includ- approval for selling cosmetics, unlike
and additive manufacturing are ad- greener products, but is not ready to Deglobalization ing empty gelatin capsules. drugs that need a review and ap-
vanced technologies that will reshape pay a premium. Also, the expectations The COVID crisis has forced tradi- tiveness, or altering the appearance, 4. Such devices intended for inter- proval before marketing. The point
and includes any article intended for
FMCG research departments, factories, for product performance will remain tional FMCG players to question use as a component of cosmetic. nal or external use in the diag- to remember is that there is a very
warehouses and stores, while enhanc- high. This market paradox is a massive their global supply chain strategies. nosis, treatment, mitigation or thin line between saying that the
ing customer experience and engage- technical and economic challenge for Deglobalization trends pushed the in- “Drug” includes, prevention of disease or disorder products will enhance a person’s
ment. These technologies will opti- the industry. The question becomes: dustry to reinvent classic mass-market 1. All medicines for internal or ex- in human beings or animals, as appearance to stating that they will
mize internal processes and automate how can we triangulate performance, approaches centred on volumes and ternal use of human beings or may be specified from time to make structural changes to the skin,
redundant and low value-added tasks. sustainability, and cost in the same cost reductions. In the next 5-10 years, animals and all substances in- time by the Central Government prevent or treat certain medical con-
They will strengthen client intimacy by product? A lot of key players are al- critical challenges like supply chain tended to be used for or in the by notification in the Official ditions. However, many companies
leveraging data to provide perfect cus- ready working on it. resilience, local sourcing strategies, diagnosis, treatment, mitigation Gazette, after consultation with cross this line, as indicated by the
tom solutions to billions of clients. and risk mitigation with backward and the Board. proliferation of unlawful claims on
New business models forward integration will need to be or prevention of any disease or the product advertised and sold espe-
Personalization Digital disruption comes with the addressed and secured. disorder in human beings or “Ayurvedic, Siddha or Unani cially on the Internet. Simply speak-
There will be a major structural shift emergence of several business models animals, including preparations drug” includes all medicines in- ing, products intended to cleanse or
from mass production to mass persona- that are reshaping the industry. The While working on your 2025 inno- applied on human body for the tended for internal or external use beautify are cosmetics and ones in-
lization in the industry. For decades, financial fundamentals of major FMCG vation roadmap, think about these five purpose of repelling insects like for or in the diagnosis, treatment, tended to treat or prevent disease or
personal care and food and beverage firms are well-known: high volumes, strategic pillars: digitization, persona- mosquitoes. mitigation or prevention of disease affect the structure or function of the
players have served their clients with a strong brand power, solid relationship lization, new business models, sustain- 2. Such substances (other than or disorder in human beings or ani- body, are drugs.
mass-market mindset. Yet, a large part with physical retailers, and giant sizes ability, and resilience! food) intended to affect the struc- mals, and manufactured exclusively
of their product portfolio is related to enabling economy of scales and cost ture or any function of the human in accordance with the formulae Products that behave as both
intimate and personal factors like skin optimization at each step of the value NICOLAS VOTANO body or intended to be used for described in the authoritative books cosmetics and drugs include anti-
and hair type. The quest for persona- chain. With the digital era, industry Associate Partner, Frost & Sullivan the destruction of [vermin] or of Ayurvedic, Siddha and Unani Tibb dandruff shampoos, antiperspirant-
34 Home, Personal & Institutional Care India February 2021 Home, Personal & Institutional Care India February 2021 35