Driving Growth in FMCG: Digital Transformation Meets the Rising Tide of Out-of-Home Consumption in Thailand
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Thailand's FMCG landscape is undergoing a significant shift as out-of-home (OOH) consumption surges post-pandemic. This change is driven by the return of free mobility, on-site activities, and an increasing demand for convenience. Kantar's 2024 Thailand FMCG Outlook report highlights a 4.3% increase in OOH consumption1 volume and a 3.4% rise in spending per trip, signaling a clear opportunity for FMCG brands to capitalise on this trend.
Digital Transformation: The Key to Unlocking OOH Growth
In today's constantly evolving landscape, digital transformation becomes even more crucial for FMCG companies. By embracing digital technologies, brands can not only adapt to changing consumer behaviors but also actively shape them to their advantage. Here's how:
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Data-Driven Insights: Utilise digital tools to analyse OOH consumption patterns, identify peak demand periods (like mornings in Thailand), and understand evolving product preferences. This data can inform targeted product development, marketing campaigns, and distribution strategies.
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Omnichannel Presence: Establish a seamless presence across online and offline channels, making it easy for consumers to purchase products on-the-go or pre-order for convenient pickup. Invest in mobile apps, e-commerce platforms, and digital payment solutions to enhance the overall customer experience.
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Hyper-Personalisation: Leverage digital platforms such as Hubspot or Salesforce to deliver personalised offers, recommendations, and loyalty programs based on individual consumer preferences and purchase history, fostering deeper engagement and repeat business.
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Real-Time Agility: Utilise digital tools to monitor market trends, competitor activity, and consumer sentiment in real-time. This agility allows for swift adjustments to product offerings, pricing, and marketing strategies to capitalise on emerging OOH opportunities.
The Potential for AI to Amplify Digital Transformation
In the last few years we've seen the proliferation of AI as a game-changer in the digital transformation toolkit. AI-powered solutions can analyse vast amounts of data, predict consumer behavior, and automate tasks, freeing up human resources for strategic decision-making far quicker than data analysts have been able to do before.
ddx has been researching the fusion of AI and real-time receipt data in order to help FMCG companies optimise their demand forecasting and strategic planning. By analysing granular purchase information captured at the point of sale, AI-powered algorithms can unlock valuable insights into consumer behavior, product performance, and market trends.
This enables FMCG companies to identify emerging patterns in OOH consumption, predict demand fluctuations, and make data-driven decisions to tailor their product offerings, pricing, and marketing strategies to meet evolving consumer needs.
For example, AI can pinpoint which products are gaining traction during morning occasions, allowing brands like 6ty Water to adjust production and distribution accordingly, ensuring availability at peak demand times and maximising sales opportunities.
6ty Water: A Digital-First Approach to Seizing the OOH Moment
For new entrants to the market like 6ty Water, this is a golden opportunity to establish a strong foothold in the market. By embracing a digital-first approach, FMCG companies can:
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Rapidly build brand awareness: Utilise social media, influencer marketing, and targeted online advertising to reach a wider audience and create a buzz around its products.
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Cater to convenience: Ensure products are available in convenient formats and locations, aligning with the growing demand for on-the-go consumption.
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Engage with consumers: Create interactive digital experiences, gather feedback, and foster a community around the brand to drive loyalty and advocacy.
Conclusion
The rise of OOH consumption in Thailand presents a significant growth opportunity for FMCG brands to partner with experienced digital transformation companies. By embracing digital transformation as a strategic imperative, companies can gain valuable insights into consumer behavior, deliver personalised experiences, and optimise their product offerings to cater to the evolving demands of the market. This will not only drive sales but also build stronger brand loyalty and long-term success in this dynamic landscape.
Ready to leverage digital transformation to capture the OOH market?
ddx partners with FMCG companies to navigate the complexities of the digital age. We help them develop tailored strategies, implement cutting-edge technologies, and build a customer-centric organisation that thrives in the ever-changing world of consumer goods. Contact us today to discover how we can find opportunities in your business and achieve sustainable growth.
If you’d like to know more about how ddx can help your business, or run a digital transformation assessment for your business, feel free to reach out to ddx.
1. https://asianbusinessreview.com/exclusive/thailand-sees-boom-in-out-home-consumption