Sustaining profitability in the top competitive sectors can be considered a significant challenge for businesses. It becomes apparent in the Fast-Moving Consumer Goods sector, where customers are pickier despite the offers and personalised services. Better decision-making along with highly accurate predictions of consumer behaviour. 

Elevating the operational efficiency while understanding customer choices, fluctuation in demand patterns etc. will ensure business sustains profitability. The ultimate aim is to enhance the customer experiences that can be earned through key insights, which should remain cost-effective. Therefore, the insights must be derived from data gathered across all aspects of the supply chain. 

Here deploying Artificial Intelligence plays a pivotal role in bridging the gap between business and their customers. The point is critical as a part of the FMCG sector is managed through third parties like retailers. AI is transforming the FMCG industry by using advanced technologies like virtual assistants to provide the best shopping experiences. They constantly innovate the sector by studying social media behavioural patterns to incorporate technology. 

Given below are a few ways in which AI disrupt the FMCG industry:

• Understand customer behaviour
• Improve workflow
• Enhance product designs
• Better use of marketing and ad spends
• Ensure the finest customer experience

Many FMCG giants use AI to power their consumer experiences. For example, during the recently held general annual meeting, the leading Swiss F&B conglomerate Nestle announced that the deployment of AI in their Indian subsidiary has helped them customise consumer choices and plan new launches effectively.  

CEO of Nestle, Mark Schneider, further explained that “we are using AI in India to assess multiple types of data that give insights down to a postal code and demographic level. This level of customisation has benefited us as well as our customers and consumers”.  

Other than Nestle, many FMCG companies also joined the AI bandwagon. From Reliance to Dabur to Hindustan Unilever to Marico, companies are currently busy enhancing their AI-based platforms not only to improve their operational efficiencies but also to attract possible consumers with their desired goods and solutions. 

Hindustan Unilever is leveraging its new AI-based innovation tools to identify trends and test its new product concepts. Sanjiv Mehta, CEO and MD of HUL, says it is investing in technology-driven commerce ahead of the curve with capabilities such as virtual try-on, and they are currently piloting an AI skin analyser on the Lakme D2C platform. HUL’s new Agile Innovation Hub, which is powered by AI, can accelerate its speed of innovation using digital innovation workflow. 

Ayurvedic company Dabur India has included AI-driven technologies in their key processes. CEO Mohit Malhotra says the company uses AI, machine learning, robots and automation to drive greater efficiency across the organisation, including supply chain, marketing, sales and marketing while offering cost savings. The company believes these initiatives are the driving force for increasing the efficiency of targeted outlet visits for the field force. 

Chief Information and Digital Technology Officer of Marico, Vrijesh Nagathan, mentioned that the company is enforcing cutting-edge analytics and AI capabilities to enable data-driven prioritisation, resource allocation and decision support. This enhanced institutionalising the new sales framework, further improving Marico’s on-ground agility and strengthening their micro market focus and execution. 

Pallab Roy, Partner at KPMG in India, believes that data is the new currency and AI-powered models in the back-office operations of better sourcing, improving compliance and procedures and in MIS are widely adopted to stay ahead of the curve. He said, “AI can augment intelligence to help managers analyse large quantum of data, choose action options and learn from outcomes rapidly”.  

Subramaniam V, Director at Reliance Retail, says, “With AI deployed at scale, India’s retail market is expected to grow to $2 trillion by 2023 from $844 billion in 2022. 

The potential and possibilities of AI-led disruptions in the FMCG sector are limitless. As a result, businesses are frequently learning and adapting new strategies to experience how the power of AI can be leveraged to gain an edge. Finest branding experiences and boosted revenues are the two key aspects that drive these changes. 

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