Posted on : 2024-04-12 03:27:01
Article : Good evening Friday Management TASK 289- In the face of intense competition and a high turnover volume in FMCG sector, Artificial Intelligence emerges as a crucial differentiator in helping brands stay ahead of the curve.
New technological advancements and the growth of the digital space have led various sectors to embrace innovation and adaptation. The fast-moving consumer goods (FMCG) sector, in particular has rapidly shifted in that direction by joining hands with the e-commerce industry. McKinsey reveals that e-commerce sales in the consumer goods industry are projected to reach $1.8 trillion by 2025, a fourfold increase from the last decade. In the face of intense competition and a high turnover volume in the sector, Artificial Intelligence emerges as a crucial differentiator in helping brands stay ahead of the curve.
Artificial Intelligence plays a vital role in bringing consumers closer to the brand. An ongoing challenge within the FMCG industry is for accurate consumer insights to enhance data-backed decision-making. Insights AI combines advanced AI technologies like Emotion AI, Behaviour AI, and Generative AI, to ensure brands get in-depth consumer behaviour data. These technologies help brands understand the expectations and preferences of target audiences and provide accurate data for efficient decision-making.
As with any other industry, consumer needs and expectations in the FMCG sector are ever-evolving. AI's ability to access and process vast data sets allows brands to tailor their marketing strategies quickly and effectively in line with the requirements of the target audience. With the inclusion of Insights AI, the Indian FMCG industry could witness a significant improvement in the cost and quality of products and services.
Insights AI’s Role in gauging user emotions and behaviours-One of the most crucial aspects of any FMCG product lies in its ability to resonate with the consumer. Here is where understanding the emotions and behaviours of the consumer towards the product becomes important. Insights AI plays a vital role in bringing these insights closer to the brand in several ways.
Emotion AI for Capturing Sentiments-* Utilizes Facial Coding and Voice AI to measure and quantify human emotions while interacting with a product.
• Enables brands to measure and quantify human emotions by capturing facial expressions using webcams and smartphone cameras.
• Provides nuanced insights into consumer sentiments through tone, pitch, and speech patterns
Behaviour AI for Enhanced Engagement--* Incorporates mouse-tracking and eye-tracking technology for eye-pupil movement and mouse click data.
• Get metrics on where and how long users looked and interacted with your product to understand their preferences.
• Invaluable for optimizing interfaces, content placement, and overall user experiences.
Gen AI for Data Analysis--
• Capability to read data and perform comprehensive analysis within a given workspace.
• Allow users to ask queries about research data available within a repository and obtain rapid insights.
While AI has a huge potential for FMCG brands to scale and improve, its widespread adoption also raises concerns about data privacy and ethical considerations. The heavy reliance on consumer data for insights also means transparency is a key priority in AI.
AI-led disruption in the FMCG sector is not just a possibility- it is already happening. From optimizing strategies to personalized recommendations, AI is leading the way for the FMCG sector to thrive- in the e-commerce space and beyond. With the continuous evolution of technology and fierce competition in the market, the need for products and brands to stand out is imperative- especially among FMCG players. As such, brands must remain agile, adaptive, and customer-centric in their approach toward AI to deliver meaningful experiences for the end consumers.
With this intro for importance of AI in retailing we look forward to your perspective, related inputs on this aspect to offer more useful knowledge to our blog viewers. Our Management solution for this TASK 289 with brands case studies will be posted on Monday 15th April 2024.
Log on to www.wingsofmanagement.com to know more about our “Strategy Management consultancy’s” versatile capabilities, global clients and to read our weekly posts and our projects.