In 2021, the FMCG sector continued to cope with the ongoing COVID-19 pandemic and started to grapple with the prolonged effects of supply chain disruptions, high commodity prices, and the rise of inflation. Pressured by a big step up in production and transportation costs and sustained high consumer demand, manufacturers and retailers have operated pricing and shopper-focused initiatives across multiple categories and channels in an attempt to protect margins and soften the impact on shoppers. Concerned with growing living costs, shoppers have started to employ multiple money-saving tactics, from switching brands/channels to moving to private label, and/or stockpiling.
As global conflicts unfold in 2022 and further exacerbate the supply-demand woes, FMCG companies and retailers will need to combat a combination of multiple challenges to safeguard profitability without losing competitiveness and relevance to shoppers.
Global revenue growth management survey – 2022 Edition
Curious to understand how these persistent challenges are affecting FMCG organisations, Kantar has conducted the second edition of its Revenue Management study and surveyed the world’s leading figures in the FMCG industry: gathering their perceptions on the effects of the structural changes they have seen, and their opinions on how the sector may change in the future.
New challenges and a renewed commitment to volume, revenue and profitability
The prevalent perception among FMCG organisations is that commercial challenges will be more pressing across the board and that going back to pre-pandemic ways of operating is not just impossible but would also be counterproductive. The economic fallout will continue to trickle down to retail, forcing FMCG manufacturers to rethink their portfolio mix, shopper, and trade strategies.
This year’s study confirms FMCG organisations’ commitment to volume, revenue and profitability growth and shows their renewed attention to revising and reshaping their pricing strategies, portfolio mix and trade promotion tactics. Faced with the complexity of the current situation and future uncertainties, companies indicate their intention to increase their trade investments across multiple commercial levers and channels.
RGM at the forefront of the FMCG agenda
The need to take a holistic approach to balance the impact of multiple levers on the P&L, from price increases to package innovation, from premiumisation to short-term trade promotions, means revenue growth management capabilities are at the forefront of the FMCG agenda.
The outlook indicates the intent of FMCGs to further invest in revenue management to better equip their global organisations with scalable, repeatable, and intelligent systems, capabilities, and processes. Growth-oriented companies fast-forwarded their RGM digital transformation programmes during the pandemic period and will continue to do so to win at times of inflationary crisis and geopolitical instability.
Download the research
We invite you to read about revenue management pre- and post-pandemic in the following pages and we hope the findings and recommendations will inspire you to consider your own situation and how you may be able to improve based on the experiences of these industry leaders.
Contact us if you wish to further discuss this study’s findings or learn how Kantar can provide AI-powered technologies and best practices to enable insights-to-action revenue management in your organisation.
Revenue Management from Insights to Action Miniguide Series
In this series, we will examine the role of each key revenue management lever – assortment, pricing, and trade promotions – and how their well-orchestrated interplay is paramount for CPGs to create winning revenue management strategies.
Read our entire miniguide series and learn how to fast-forward digital transformation and inspire successful revenue growth management strategies for your organisation, at speed and scale.