The future of FMCG and e-commerce
Understanding each platform
is the key to maximising ROI
Currently, Shopee, Lazada and Retailer.com are continuing to grow in terms of both share and penetration. Tik Tok is growing the fastest of all the platforms, driven by acquiring more buyers, which is an important foundation for encouraging shoppers to buy more often and buy larger basket sizes in the future.
From the current performance of each platform, FMCG brands and retailers can accelerate their growth through e-commerce by understanding the role each online channel and platform could play across five key levers:
Conversion
Trading up to premiumisation
Promoting bigger baskets
Promoting repeaters, and
Promoting category/product trials
Manufacturers, marketers, trade marketers and retailers must work together to take advantage of the increasing use of e-commerce in Thailand. FMCG products are not only a necessity; they also have a fast purchasing cycle which can lead to a high repeat rate and frequency. This creates an irresistible opportunity for e-stores to leverage FMCG to grow further, and for brands to leverage e-stores to maximise profit and return on investment (ROI).
To achieve this, they need to understand:
The role of each online channel and platform
The profile of each platform by category
The interests and media consumption of their target shoppers
Triggers and barriers to new and repeat online shoppers
The shopper journey or path to purchase in the e-commerce channel
This requires both comprehensive consumer data, and the necessary market expertise to analyse it to derive detailed and accurate insights that will provide the ‘compass’ for the brand’s growth journey.
These are the principles of Marketing 5.0: the combination of Marketing 3.0 (data) and Marketing 4.0 (digital technology) to enhance consumer understanding.
Kantar Worldpanel has been collecting consumer data and analysing changes in consumer behaviour over decades. We specialise in applying Marketing 5.0 to assess opportunities for FMCG retailers and manufacturers, and determine how consumers in Thailand are changing their product selection, channel and platform choice as well as media consumption.
