By Ketan Patel, CMD Creative Newtech
The use of electric goods has grown exponentially along with the expansion of infrastructure in the residential, commercial, and industrial sectors. This expansion has fueled the expansion of the FMEG sectors in India, where both domestic and foreign competitors are fiercely competing for market dominance.
A recent study estimates that the Indian electrical industry would generate $40 billion in revenue in 2019, or around 2% of the country’s GDP. In addition, it is anticipated that India’s electrical equipment market would rise by USD 33.74 billion between 2021 and 2025 and that the industry will expand at a CAGR of nine percent.
Rapid growth and change are being experienced by the Fast-Moving Electrical Goods (FMEG) business as a result of technology breakthroughs, shifting customer tastes, and shifting regulatory environments. Understanding the most recent trends becomes essential as businesses try to stay ahead in this fast-paced industry.
Smart Technology Integration
Disruptive technology is projected to have a significant role in enhancing people’s quality of life, global economies, and business structures. Even more importantly, information technology is transforming products. Products that were once made up entirely of mechanical and electrical pieces have evolved into complicated systems that incorporate hardware, sensors, data storage, microprocessors, software, and communication in a variety of ways.
Smart, linked products, according to a Harvard Business Review article, offer exponentially expanding prospects for new functionality, significantly improved reliability, far higher product utilisation, and capabilities that cut over and surpass traditional product boundaries. Product evolution is also altering value chains, requiring businesses to rethink and retool practically everything they do internally.
Technologically advanced products present a new set of strategic options for how value is created and captured, how the massive amount of new (and sensitive) data they generate is used and managed, how relationships with traditional business partners such as channels are redefined, and what role companies should play as industry boundaries expand.
The integration of the Internet of Things (IoT) has revolutionised the FMEG business, spanning several product categories such as home appliances, consumer electronics, and lighting solutions. The widespread availability of Internet of Things (IoT) devices and connections has enabled seamless interconnection and improved user experiences. Consumers are increasingly looking for smarter solutions that provide convenience, energy economy, and better usefulness, ranging from smart homes with integrated appliances to voice-controlled gadgets.
Energy Efficiency and Sustainability
Sustainability is at the top of the priority list for businesses all over the world. With growing environmental concerns and severe laws, consumers and industry participants have made energy efficiency and sustainability top goals.
Sustainability determines how important resources like as energy, carbon, water, garbage, and so on are used throughout the supply chain.
Energy-efficient businesses can obtain a competitive advantage over less efficient businesses, allowing them to raise profits at existing product pricing, drop prices to gain market share, or a combination of the two.
Most businesses that adopt sustainable practises see a reduction in their energy consumption and waste generation. Their efforts to reduce their environmental impact can pay them financially and help them establish a positive reputation among competitors and in the marketplace. It has also been noted that investors are particularly drawn to organisations that are built on a foundation of sustainability.
Digital Transformation and E-commerce
Traditional business models have been challenged as a result of the digital revolution, and the FMEG industry is no different. E-commerce platforms have emerged as effective avenues for product discovery, comparison, and purchase. According to a Deloitte report, digital allows retailers to acquire new customers, engage better with existing customers, reduce operational costs, and improve employee motivation, among other benefits that have a positive impact on revenue and margins.
Rising household incomes, greater consumerism, e-commerce, favourable demographics, and cheap credit availability are driving a rapid shift in Indian retail. New players are entering the Indian retail diaspora. Developing technologies enable retailers to recruit new customers, engage better with existing customers, cut operational costs, and boost employee engagement, among other benefits that have a favourable impact on sales and margins.