3. Free up internal resources and ensure long-term survival
As early results of the pandemic, the buying habits by private and professionals have and will change – we have not seen all the impacts of the pandemic yet. This urge many FMCG brands owners to accelerate internal transformations and organizational restructuring to free up resources such as cash, capital and facilities.
When tasks related to FMCG brand owners’ route to market are allocated to an outsourcing partner, they release internal resources which can be put into effective use for other purposes. It allows them to spend time and efforts on their core competencies and mission. Additionally, the organization free up capital for further investments in e.g. technology or in developing new and better products or services.
Private labels and retailers’ brands are new and strong competitors in nearly all FMCG categories, which strengthen the need for constant progress and visionary brands. In an outsourcing partnership, the FMCG brand owner is still responsible for the product development, initiatives, innovations and creative marketing. This is key in the long-term survival strategy of a brand, especially as the global Covid-19 crisis has affected what consumers buy, how they buy it and when they buy it.
“More than ever, product development cycles, creativity and innovation are very critical if a brand want to stay relevant, top of mind, build loyalty and continue its growth path. I believe that this part of the FMCG value chain is changing very fast and it needs to be a high priority to FMCG brand owners. At Conaxess Trade, we provide the brand owner with data, insight and local knowledge which can help you in this process.”
– Uwe Thellmann, Group CEO, Conaxess Trade.