2024 has been a year of regrowth, but consumers are still facing the lingering pressures of inflation. This is driving up the costs, making it difficult for FMCG brands to maintain their profit margins.

This means brands have more to contend with than ever as they chase success. Failing to keep pace with the markets or notice shifting trends early can be the difference between market dominance and fighting for scraps. Here are the top 5 habits we have seen successful brands practice.

Understanding Consumer Behaviors

One of the most common habits we’ve seen in successful FMCG brands is a deep understanding of their customers, their needs, and their wants. These brands use this understanding to create products that meet those needs and wants and market their products in a way that resonates with their customers.

This requires examining retail sales data, consumer behavior, competitor pricing and promotion tactics, outside factors, and more. Understanding not only what’s going on but why is key to adapting to a shifting marketplace and continuing to grow.

Staying Agile

With so many factors affecting consumer demand, reacting only to inflation will only get you so far. The FMCG industry is constantly changing, so successful brands must be agile. They need to be able to adapt quickly to changes in the market, consumer preferences, and technology. But this is easier said than done.

You should start by putting the consumer at the center of your strategies. Investing in consumer research and data analysis to gain insights into their needs, preferences, and pain points can help set the stage. Then, you can use these insights to tailor your products, packaging, and marketing efforts to meet consumer demands.

Innovating Often

The FMCG industry is constantly changing, with new products and brands being introduced all the time. Successful FMCG brands are continually innovating, looking for new ways to improve their products and meet the needs of their customers.

NIQ BASES data shows that when innovation sales grow, a company is 1.8x more likely to increase overall sales than other companies whose innovation sales are stagnant or declining. However, not all brands innovate in a way that will lead them to success. Some ways to achieve success include sticking to the fundamentals, focusing on activation, and managing innovations.

Building a Brand

A strong brand is essential for any FMCG brand. It gives consumers a reason to choose your product over the competition. Successful FMCG brands understand who their customers are and work diligently to align themselves and their products with consumer demands. That doesn’t mean changing their core brand; it just means adapting efforts to connect with their audience.

A strong brand is built on a foundation of quality, innovation, and marketing. When these three factors work together and address consumer needs, they pave the way for future growth. Successful FMCG brands invest in each pillar and regularly measure their performance in the market.

They also focus on providing a consistently positive customer experience at every touchpoint, from the product to how they interact with customers on social media. This means ensuring that products are high-quality, easy to use, and meet the needs of the target audience.

Relying on Data

Successful FMCG brands use data to make informed product development, marketing, and sales decisions. They track sales data, customer feedback, and other metrics to identify trends and opportunities.

Acting on sub-par data usually leads to sub-par success. They can never act on complete data and get the most out of their products. The actual value of high-quality data and insights can be seen in your ability to identify emerging issues and trends and act on them.

The key to being a successful FMCG brand is learning from past experiences, understanding the markets, and adapting as necessary to fit the shifting demands of consumers. But this is often easier said than done. When the market is shifting, you need to be on top of your game if you’re going to come out on top. Check out our free eBook, 5 Key Habits of Successful FMCG Brands, to help you better understand how they are achieving their goals. 

Download here.