The analysis by the global market research firm EY states that consumer goods companies have enormous opportunities to use AI to improve asset tracking, supply chain management, and consumer experience and engagement. The use of artificial intelligence (AI) technologies to improve customer centricity and operational efficiency is on the rise among Indian merchants. An overwhelming 82% of Indians surveyed by the EY consumer index are optimistic that artificial intelligence will one day make shopping much easier.

Several industries have jumped on the bandwagon of innovation and adaptation in response to recent tech developments and the expansion of the internet. This trend has been especially accelerated by the fast-moving consumer goods (FMCG) industry's collaboration with the e-commerce sector. According to McKinsey, E-commerce sales for consumer goods will quadruple from 2016 to 2025, reaching $1.8 trillion. With so much competition and so many brands entering the industry, AI is becoming an important differentiator for brands looking to remain ahead of the curve.

AI is crucial to draw customers closer to the company. Finding reliable customer insights to improve data-backed decision-making is a persistent problem in the fast-moving consumer goods (FMCG) sector. Insights AI ensures organisations acquire in-depth customer behaviour data by combining powerful AI technologies like Emotion AI, Behaviour AI, and Generative AI. These innovations provide precise data for effective decision-making and aid brands in comprehending the wants and needs of target consumers.

Customer wants and demands in the fast-moving consumer goods industry (FMCG) are dynamic, just like in any other industry. Thanks to AI's data-processing prowess, organisations can swiftly and accurately adjust their marketing plans to meet the needs of their target audience. Insights AI has the potential to greatly enhance the quality and affordability of products and services in the Indian fast-moving consumer goods market.

Providing Forecasts to FMCG Companies
Customised Suggestions

Providing Forecasts to FMCG Companies

Through AI, Fast-Moving Consumer Goods (FMCG) companies may better understand their customers' habits and preferences, which in turn allows them to provide better service and encourages more participation. Artificial Intelligence also allows for substantial process automation, which saves time and money. According to an IBM poll, retail and brand executives expect cognitive automation capabilities to slash operational expenses by seven per cent on average.

Adapting to the latest developments in data-driven technologies like deep learning, artificial intelligence, and machine learning can greatly benefit FMCG companies. There have been revolutionary shifts in the fast-moving consumer goods (FMCG) industry as a result of Machine learning and deep learning. With the massive amounts of data produced by the FMCG industry, Machine learning approaches help businesses identify and segment their target markets by analysing customer behaviour, preferences, and buying habits. Companies in the fast-moving consumer goods industry can use this information to improve their demand forecasting, personalise their marketing campaigns, and optimise product positioning and pricing tactics.

Customised Suggestions

AI is having a major impact on consumer choices by providing tailored suggestions. In contrast to 23% worldwide, 48% of Indians trust AI for personalised promotions and sales, according to the EY report.

Online retailers, media streaming sites, and social media sites all use AI algorithms to sift through customers' tastes, habits, and online activity. Customers have better shopping experiences, are more satisfied overall, and are likelier to a brand because of AI's ability to provide personalised product recommendations based on their interests and preferences.

Using AI-based technologies to make buying decisions is becoming more and more acceptable to Indian shoppers. While just 58% of people worldwide are receptive to the idea of AI helping them make better purchasing decisions, 82% of Indians are. Indian customers have more faith in AI-generated personalised suggestions and AI-powered targeted marketing and sales. When asked for assistance, 82% of Indians would be willing to use a chatbot.

Variations in consumer demand contain useful information for fast-moving consumer goods (FMCG) companies due to the many connections and patterns they contain. Discovering these insights is essential for getting ahead in the industry. FMCG companies need to process this data to make informed decisions about product placement, product prioritisation, workflow optimisation, marketing segmentation, pricing and offer launch timings. Applying state-of-the-art tools and algorithms allows for thorough planning and optimisation in the FMCG landscape. As a result, more and more fast-moving consumer goods (FMCG) companies are using AI-powered automation to reimagine the customer service they provide and boost engagement with their brands.

FAQs

What is the future of AI in the FMCG industry in India?

• AI is expected to play an increasingly important role in all aspects of the FMCG industry, from product development to marketing and sales.
• As AI technology continues to evolve, we can expect to see even more innovative applications in the FMCG space.

What are some of the benefits of using AI for FMCG companies in India?

Some of the benefits of using AI for FMCG Companies are increased customer satisfaction and loyalty, improved operational efficiency, reduced costs and better decision-making.

How can FMCG companies in India use AI to improve customer experience?

• AI can provide personalized recommendations based on customer behaviour and preferences.
• AI-powered chatbots can offer 24/7 customer support.
• AI can help companies understand customer needs through sentiment analysis.