1. An Overview of the FMCG (Fast-Moving Consumer Goods) Sector

Including some of the world’s biggest firms, FMCG sector contains everything from food to self-hygiene, hygiene to detergents that people use on a daily basis and hence it is an essential part of social and economic life.

In a sector where competition is tough, positioning in the market, responding to demand quickly and providing good service are important for maintaining your market share.

2. FMCG Sector in Turkey and Foresight

Compared to last year, sales in FMCG sector have diminished %12 and placed Turkey in 1st place among 21 European countries in terms of fastest growth. Especially an increase in both purchasing power and the population in urban areas indicates and increase in organized retail and hence FMCG sector.

During last 10 years, there has been a switch from classic retail (small markets, artisans etc.) to organized retail (supermarkets). Organized retail firms have been developing rapidly and increase their presence in urban areas. On the other hand, classic retail firms that are often local and become most of the retail employment have been experiencing problems in terms of efficiency. For this reason, to become stronger and continue to have market share companies must implement more effective and modern methods.

Every single company in the FMCG sector aims to manage their supply chain the most effective way, supply high volumes in short times and invest in technology to maintain and improve logistics. Especially firms that aim to increase their efficiency to utilize technology and smart systems for better managing of their supply chains and make sure they implement these systems to their business processes.

In FMCG sector where communication technologies are used dynamic adaption to the changes, companies utilize digital platforms to find what catches their customer’s attention.

These platforms act as bridges between the company and the firms to reach out to customers in a creative way while the actions towards the data acquired are being planned. As a result, the competition in the sector reflects itself to the digital world as well. Many brands use digital channels as a communication tool with customers and aim to increase customer loyalty by presentations that increase brand value.

The rapid development of e-commerce helps the market to increase the variety of goods they offer. Especially due to their low prices and installment options, e-commerce platforms have caught the attention of customers. Furthermore by adding FMCG to their portfolios, they create a competitive atmosphere in terms of pricing. As a result, due to purchasing power not increasing as much as personal income, offline channels started using effective discount campaigns to position themselves in this price competitive atmosphere.

On the other hand, rising healthy life trends have affected FMCG sector not only in Turkey but in the world as well. The consumers have started to prefer healthier goods and demand that firms which are more sensitive to the environment. The sensitivity about these issues has been becoming more common with the increase in social media use. For this reason, companies that want to maintain their shares in the market must add “sustainability”, “consumer health”, “green chain of supply”, “natural”, “energy usage reduction”, “environment safety”, “green innovation” and etc. to their agendas.

Another value that most firms value is “glocal”, which mean both local and global consideration. When firms present new products to the market, position their brands and determine marketing strategies, it is highly important that they consider consumers’ purchasing behaviors, habits, and sensitivities.

With parallel to all these transformations, the competition between companies will keep growing and make companies’ way of doing business easier during renewal phases. The mentioned event and finding and implementing correct structures to increase efficiency will continue to play a key role in companies’ sustainability in the market.