CMOs and marketing leaders managing large consumer brand portfolios today are more challenged than ever before. They are being pulled between opposing mega forces which are reshaping the rules of the industry and challenging sustained growth.
New brands creating newer needs
Most FMCG categories today are seeing an influx of new and nimble brands offering unique benefits. This means stiffer competition for large brands and increased pressures to respond with counter offerings to protect their market share.
This trend is even more evident in Asia Pacific. For example, the beverages category in India has seen new entrants like PaperBoat, Raw Pressery and Chai Point adding to the traditional competition of Pepsi and Coca-Cola India. A similar trend can be seen in the beauty category with rise of Korean and Thai brands like AprilSkin and SnailWhite across South-East Asia.
Marketing budgets are under pressure
With the consumer goods industry challenged for top line growth, the focus has shifted to bottom-line management. This has meant closer scrutiny of marketing investments, and in many cases, stagnation or reduction in brand budgets.