And as technology evolves, omni-channel retailing – the selling of products seamlessly across physical and digital touchpoints – is driving change in the FMCG industry at an unprecented rate.
Omni-channel retailing means seasons and opening hours will eventually disappear, according to Magnus Penker, founding partner of Innovation 360 Group. The amplification of FMCG channels also means consumers will become producers and vice versa. “In the modern age, the lines are blurring and basically everybody is a possible buyer, seller, consumer and/or producer of material and immaterial deliverables,” he says.
Omni-channel retailing is already on retailers’ horizons, and the pace of change will only continue to increase. A survey by Bain & Company and Google predicts that by 2020, $5 billion (or 5 percent) of total FMCG sales in India will be online – 16 times the current share of 0.3 percent.
Meanwhile, in mature markets where economies are strong or gaining in strength, FMCG profit margins remain stagnant. Industry analysts at EY suggest FMCG companies need to work much harder to continue delivering value to shareholders. To do so, business leaders must make a concerted effort to break down barriers throughout their organizations, and employ innovative, nontraditional thinking across all facets of the business. The report also recommends FMCG companies invest more in big data and analytics to improve the quality of business insights, enabling leaders to make better, faster decisions.
So what influence will these external factors have on talent attraction in the FMCG industry? One certainty is the need to ensure employer branding appeals to graduates who can think innovatively about how technology – as well as big data and analytics – will influence the future of retail. This may mean talent managers need to widen their talent pools and consider graduates who haven’t previously envisaged a future in FMCG. With the Talent Insights Series, Universum aims to uncover what university students are looking for in future FMCG employers –and how companies can translate these findings into actionable steps for HR and C-level leaders.
Learn more about what university students look for in future employers and the implications for companies that seek to hire them.