FMCG Promo Pulse: Jan - Jun 2020 vs 2019
FMCG's Digital Turn: Social Media Replaces Print Ads in Pandemic Era
In an unprecedented move catalyzed by the COVID-19 pandemic, the Fast-Moving Consumer Goods (FMCG) sector is undergoing a seismic shift in its advertising strategies. As newspaper adverts gasp for relevance, social media platforms are emerging as the new titans of consumer reach. Industry behemoths like Watsons, Tesco, and Aeon Big are pioneering this digital migration, signaling a tectonic shift in where ad dollars are being invested. With an overall basket price seeing a marginal dip of 2%, the message is clear: digital is not just effective, it's also economical.
Mailers on the Decline, Social Media on the Rise: A Tale of Two Mediums
Make no mistake, the humble mailer still accounts for a substantial 60% of promotional features. However, the winds of change are blowing. The pandemic-induced Movement Control Orders (MCO) have accelerated a decline in mailer-based promotions. Now, categories like Health & Beauty and Grocery & Fresh are staking their claim on social media. Niche categories such as Facial Care and fresh produce are commanding unprecedented attention on these platforms. Aeon Big is even reformatting, truncating their lengthy promotional booklets to crisp 1-2 page bulletins.
Navigating the New Norm: FMCG Retail Channels Pivot Strategy
It's not merely a change of platform; it's a complete overhaul of strategy. Take Aeon Wellness—once reliant on frequent mailer issues, it now zeroes in on monthly big-hitter promotions. Nestle, a stalwart of traditional advertising, has slashed its mailer, press, and in-store promotions, only to resurface as the dominant promotional supplier on social media. House brands like those of Tesco and Watsons are scaling the social media ladder, corroborating the trend that digital is the new frontier for FMCG promotions.
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