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Digital innovation in consumer good manufacturing

By Marketing Advisory, 3rd Eye Advisory®
Digital innovation in consumer good manufacturing

The Indian consumer segment has been categorized into urban and rural markets, and is attracting marketers from across the world. Global corporations view India as one of the key markets from where future is likely to emerge. The growth of India's consumer market is determined by a favourable population composition and increasing disposable incomes. It has been found that most of the consumer spending occurs in food, housing, consumer durables, and transport and communication sectors.

Consumer goods manufacturing companies that take a lead in implementing digital solutions, enjoy greater benefits than the companies that do not implement digital solutions. The process of digital innovation provides the basic analytical information of all the hierarchical steps involved in manufacturing goods. Consumer companies are already benefiting from the use of digital tools in marketing and sales- applying them to manufacturing is therefore a good initiative. Growth in purchasing power and rising influence of social media have enabled Indian consumers to splurge on good things. The Indian consumer sector has grown at an annual rate of 5.7 per cent between FY2005 to FY 2015. The Government of India has allowed 100 per cent Foreign Direct Investment (FDI) in online retail of goods and services through the automatic route. Government is greatly emphasizing on innovativemanufacturing techniquesby introducing thenew Consumer Protection Bill which ensures simple, speedy, assessable, affordable and timely delivery to consumers.

In order to provide multiple growth drivers in the consumer market industry, the government has proposed in the Union Budget 2017, to spend more on the rural side with an aim to double the farmer's income in five years, cut in income tax rate targeting small tax payers and focus on infrastructure development. Companies will need to look at digital capabilities across the value chain to ensure that the entire organization can sustain its digital potential. Consumer goods companies should develop new ecosystem partnerships both online (social media websites and analytical firms) and offline (logistic firms & media).

Sooner or later, every company will have to deal with the impact of digitization on its business model. A digital vision is required to retain customers using intelligent products, digital supply chain and services. It is also needed to ensure that data in the company can yield the relevant information for decision making and for new forms of cooperation in distributed, intelligent networks. While this offers great opportunities, it also presents great challenges.

India has a digitization future and the winners of tomorrow will be firms that can systematically plot their digital transformation agenda. Companies seeking help can reach out for any queries to 3rd Eye Advisory® .

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Article by: Marketing Advisory, 3rd Eye Advisory®