How SFA will Transform FMCG Industry by 2020.  

The Indian FMCG industry is managing its way through disruptions post festive months recording a higher demand led growth.

Large players such as makers of grocery products like biscuits, juices, toothpaste and snacks are going to increase their consumer promotion spends by 15-20% in Q3-2018.

This particularly is an interesting phase in the Indian FMCG growth trend where the rural consumption has superseded industry expectation, size of modern retail is estimated to grow 3 times in the next 5years, substantial increase in disposable income and there’s been a significant change in lifestyle choices and consumer behaviour despite policy changes initiated by the government.

The use of Sales Force Automation tools in the Indian FMCG industry is a relatively new concept. Owing to an extensive distribution set-up, it is interesting to study the adoption and advantages of technology in the supply chain within organisations. Factors such as level of training and education also determine the adoption of new technology to run businesses. Increased internet users across the country, higher consumption and spends pattern in the rural segment, cut throat competition, emergence of Modern trade and need for an organised retail distribution system has therefore prompted leading FMCG players to integrate SFA solutions in their sales system. 

A recent IBEF report on the FMCG sector and related news articles share interesting statistics about this industry that will help us understand and envisage how FMCG in India will shape up by 2020. The data pointers highlighted in the below sections will adequately provide an overview about the performance and future trends of the industry.

• Between 2016 – 2020, the Indian FMCG market is expected to grow at a CAGR of nearly 21%
• Rise in rural consumption is all set to drive the FMCG market. It is estimated to grow at a CAGR of 14.6% during the period 2016-2025. A major reason behind the spurt is explained by an increased disposable income that has grown at a CAGR of 4.1%.
• Penetration of modern retail is expected to see a substantial rise at a CAGR of 24.6% by 2020.
• The middle income class population to grow at a CAGR of 10.8% and estimated to nearly double by 2020

FieldAssist- A SaaS platform, serving more than 150+ brands worldwide, has been working closely with some of the leading FMCG brands in India such as TOPS, Del Monte to name a few. In addition to being SFA partners, FieldAssist also doubles up as knowledge partners engaging in discussions with its FMCG clients that defines the landscape and scope of sales force automation in the country.   

In developing economies like India, Africa, South-East Asia, managing on-field sales has historically been a herculean task for all SME’s & Large enterprises across sectors like FMCG, Apparel, Automotive, Hardware, Consumer Durables etc. Field Assist brings an innovative approach to manage, optimize and increase sales effectiveness with the help of efficient mobile applications, MIS dashboard and Research Partner statistical tools to handle the tonnes of data generated throughout this process.