Why FMCG B2B Businesses Should Go for Digitization?

Why FMCG B2B Businesses Should Go for Digitization

The FMCG business is still being shaken up by digital platforms. The moment has come to pick the best fast-moving consumer goods (FMCG) business-to-business online shopping platform.

There has been a dramatic shift in the fast-moving consumer goods (FMCG) industry during the past two decades, especially with the rise of e-commerce.

Despite the substantial boost the pandemic provided to FMCG eCommerce, growth ultimately halted in 2021 as consumers and companies reverted to their pre-pandemic behavior patterns. Despite this, online shopping is still the fastest-growing sales channel, but at a slower rate. Since “digital” is here to stay, it’s crucial to keep creating online platforms and react quickly to shifting market conditions.

A top focus should be placed on selecting the most appropriate digital solution if the sector’s rapid expansion in online commerce is to be sustained.

Need an answer for your FMCG online store? No time to read this entire article? Don’t worry, we’ve got you covered. If you’re in the FMCG industry, Ceymox Technologies is your best option. The API-first, modular, composable, headless, and cloud-based Ceymox Technologies platform has all the features necessary to build a first-rate B2B customer experience in the fast-moving consumer goods industry.

Top FMCG B2B Companies, Industry Features, and More

The short shelf life of FMCG items is a big issue in this business. Orders need to be processed and fulfilled quickly, but this may be challenging when trying to meet everyone’s expectations. Online shopping is the best solution to these problems.

What the Fast Moving Consumer Goods (FMCG) sector is all about

Fast-moving consumer goods (FMCG), sometimes known as consumer packaged goods (CPG), are mass-produced items that are marketed at low prices and turn over rapidly. Items from the categories of home goods, pet supplies, snacks, groceries, fresh and frozen foods, drinks, and personal care products are all good examples.

FMCG's Primary Characteristics

The following are some of the most important features of FMCG from the perspectives of both retailers and consumers.

From the buyer's perspective:

Mass distribution: fast-moving consumer goods (FMCG) are often distributed at a variety of retail outlets across several geographies.

Purchase frequency: The majority of consumer goods (FMCG) are bought on a regular basis because of their widespread consumption. Bread and coffee, for example, are essentials that people eat and drink every day.

Low effort and engagement: From the consumer’s standpoint, fast-moving consumer goods (FMCG) do not need extensive thought or investigation.

Low cost: Fast-moving consumer goods (FMCG) don’t eat up a huge chunk of shoppers’ budgets compared to other products.

Short shelf life: Fast-moving consumer goods (FMCG) tend to be perishable and have a limited shelf life. Consumption cycles are extremely short, with some things even being used the same day they are bought.

From the seller's perspective:

High volume: To meet high demand, a bigger production volume is required.

Low contribution margins: Because FMCG items are in strong demand and relatively inexpensive, merchants may sell them at reduced prices while maintaining the same profit margin. Bulk sales guarantee overall profitability despite modest contribution margins. On the other hand, premium labels need to charge more for their products in order to make a profit.

Extensive distribution: Due to the great demand and low cost of FMCG items, they have to be widely available and dispersed across several places.

High turnover: merchants may save expenses by keeping fewer of the FMCG items in stock because they are purchased more frequently.

Definition of B2B FMCG

Companies that specialize in business-to-business fast-moving consumer goods (FMCG) sell their items to other businesses rather than directly to consumers (as in business-to-consumer).

Top 10 FMCG B2B Companies

As of 2022, the following are the top 10 B2B FMCG companies, ranked by market cap.

  • Kweichow Moutai ($2.37T) is a Chinese company that specializes in manufacturing and retailing Maotai liquor as well as other alcoholic and non-alcoholic drinks, culinary items, and packaging materials. The company has also made a name for itself in the fields of information technology and anti-counterfeiting technologies.
  • Johnson & Johnson: Pharmaceuticals, consumer packaged products, and medical equipment are all produced by the American global corporation Johnson & Johnson ($454.19B). The company’s common stock is included in the Dow Jones Industrial Average (DJIA). With a credit rating that is even better than the United States government’s, this company is among the most valuable and trustworthy in the world.
  •  P&G: The American company Procter & Gamble is worth $363.01 billion. Personal hygiene, health care, and personal care are the company’s forte. Even though Kellogg’s now owns the Pringles trademark, P&G used to sell food and snacks under the name “Presents & Greetings” in 2012.
  • Nestle: Since 2014, the Swiss multinational food and consumer goods (FMCG) processing giant company Nestle ($318.67B) has been the largest food business in the world by market capitalization. Nestle sells a wide variety of foods, including those designed for babies and sick people, as well as coffee, tea, cereal, candies, ice cream, pet food, snacks, and frozen meals. Nestle is the largest stakeholder in L’Oreal, the leading cosmetics company in the world.
  • The Coca-Cola Company: It is a $274.75 billion dollar American multinational beverage company that produces the world famous Coca-Cola soft drink. Coca-Cola sells a variety of alcoholic and non-alcoholic drinks in addition to its signature sugary soda. Stock in the business trades on the New York Stock Exchange (NYSE) and is included in the Dow Jones Industrial Average (DJIA), Standard & Poor’s 500 Index (S&P 500), and S&P 100 Index.
  • PepsiCo: Multinational food and drink company PepsiCo is headquartered in the United States and is valued at $242 billion. The corporation has 23 brands in over 200 countries as of 2022. Among PepsiCo’s many food and drink offerings are household names like Pepsi-Cola, Lay’s, Doritos, Cheetos, Gatorade, Mountain Dew, and many others, all of which bring in well over a billion dollars in yearly retail sales for the company.
  • L’Oreal: The French cosmetics giant L’Oreal is worth an estimated $192.93 billion. Products ranging from hair care to skin care to sun protection to makeup and perfume are all available from L’Oreal. As of 2021, L’Oreal has 36 trademarks and 497 patents. Nestle holds a stake in the company equivalent to 23.2% of the total.
  • Philip Morris International: One of the largest and most successful worldwide cigarette corporations is Philip Morris International ($152.95B). PM was once an Altria operating business until it was separated from the parent company in March of 2008. PMI’s headquarters are in New York, and its stock is traded on the New York Stock Exchange, but the company doesn’t do business in the United States. Philip Morris USA, however, is a wholly owned subsidiary of PMI and is the legal owner of PM’s brands in the United States. PMI produces and sells non-tobacco, non-cigarette products alongside its tobacco and cigarette brands.
  •  Unilever: The British consumer goods conglomerate, Unilever ($101.11B) is present in more than 190 countries across the world. In 2021, the company’s revenue was $52 billion, with 58 percent coming from developing economies. More than 400 brands are under Unilever’s control, with 13 of those having sales of over $1 billion in 2021 and so ranking among the top 50 brands in the world. Unilever is an international company that specializes in several different markets, including the cosmetics and personal care industry, household products, food and beverage, and the ice cream industry.
  • Anheuser-Busch InBev SA: Belgian multinational beverage and brewing corporation AB InBev ($89.24B), formerly known as Anheuser-Busch InBev SA. Around 630 different beer brands are distributed by AB InBev in over 150 different nations. AB InBev’s stock is traded openly, and the stock exchange where it is most actively traded is Euronext Brussels.

Definition, Evaluation Criteria, and Required Features for FMCG Business-to-Business Online Marketplaces

If you’re serious about doing business online, you need an eCommerce platform. Companies in the fast-moving consumer goods industry (FMCG) that deal with intermediary businesses like distributors, wholesalers, and retailers require a platform designed for such transactions. A consumer-focused e-commerce platform isn’t going to cut it for business-to-business transactions. Here, we’ll break down the key distinctions between business-to-business (B2B) and business-to-consumer (B2C) eCommerce solutions, as well as offer tips for selecting a suitable FMCG B2B eCommerce platform.

You need a fast and easy FMCG business-to-business online shopping solution, but you don’t have much time to look. If you have a sophisticated business-to-business scenario, Ceymox Technologies is your best bet. We provide a cloud platform that is API-first and modular, with built-in support for B2B features and the flexibility to connect with any external service.

B2B FMCG platform

A business-to-business (B2B) platform tailored to the fast-moving consumer goods (FMCG) sector is an e-commerce solution. An e-commerce platform designed specifically for business-to-business transactions is called a B2B eCommerce platform. One section of the site is open to anybody who visits, while other sections are restricted to paying members only.

How should a B2B platform be selected for the FMCG industry?

Choosing the right business-to-business (B2B) eCommerce platform is crucial to the smooth running of your online store and the ultimate success of your digital company.

While your company’s needs and available funds should guide your platform selection, there are still certain things to keep in mind.

  • On-premise or cloud: A cloud platform is delivered, hosted, and managed by the cloud provider, while an on-premise system is placed in the vendor’s data center.
  • Open-source versus closed-source: In an open-source solution, anybody may see, alter, and share the program’s underlying code. The source code for a proprietary solution will be unavailable to you.
  • Structure: The e-commerce industry is dynamic and evolving at a rapid pace, making static platforms obsolete. As a result, it’s preferable to find a solution that can be modified as needed. Microservices, modularity, application programming interfaces (APIs), and the cloud are all promising signs.
  • Online business-to-business (B2B) shopping capabilities: In addition to standard B2B functionalities, your chosen platform should be flexible enough to accommodate the specifics of your FMCG business model.
  • Compliance: Not every platform offers crucial security measures or pre-install data protection tools (think GDPR). Examining the protocols, features, and modules that may be used is crucial.
  • Expenses: Being on a tight budget might severely limit your choices. Be sure to plan ahead and research hidden fees that may arise down the road, as well as the initial investment.

Required features of B2B e-commerce systems for fast-moving consumer goods manufacturers

The following features are essential for any B2B e-commerce platform to succeed:

  • Corporate account management: The ability to manage intricate corporate account hierarchies is an essential feature of any B2B eCommerce platform. The admin panel should have account management features that allow users to self-serve and configure/personalize their accounts in accordance with the policies and processes (such as buying) that have been set by their respective businesses.
  • Management of access and permissions: Due to the varying levels of responsibility among business users, access to data must be controlled and granted only when absolutely necessary. It is essential for a business-to-business e-commerce platform to have a system for automatically assigning and revoking permissions to users.
  • Catalog management: To ensure that consumers only see the pricing and products/items that are in accordance with their contracts, a B2B eCommerce platform should include catalog personalization options.
  • Capabilities geared at handling orders in a B2B setting: B2B order management is very different from B2C. Typically, business-to-business customers make larger purchases on the company’s behalf. Managers should be able to easily use an eCommerce solution’s quotation request, order assembly, and reordering features.
  • Managing prices: The volume, discount, frequency, etc., of business-to-business transactions, add layers of complexity to B2B pricing. As a result, B2B platforms need to incorporate this level of nuance and provide an electronic representation of the terms and conditions of any applicable contracts.
  • Workflow customization: a robust feature of any business-to-business platform is the ability to create and implement unique workflows for both the selling and buying phases of a transaction.
  • Abilities in business-to-business marketing and retailing: For online success, tailor-made, topic-appropriate content is essential. Contractual pricing and product catalogs are only the beginning of personalization in business-to-business transactions; other forms of customization, such as dynamic content and tailored recommendations, such as product bundling or alternatives in the event of an outage, are also commonplace.
  • Options for localizing: the website is essential for a fast-moving consumer goods (FMCG) company with global operations. Business-to-business (B2B) localization refers to the availability of various tools for handling many business units with divergent needs, such as compliance with various tax legislation and the capacity to convert between various currencies.
  • The Various Methods of Payment and Billing: When compared to the variety of payment options available on a normal business-to-consumer website, the number of B2B businesses that accept digital payments is quite small. A business-to-business platform should have seamless integration with many payment providers to give clients a range of options for how they want to make purchases. Payment can be made using a variety of channels, including the more common purchase orders and credit cards, as well as ACH, COD, BNPL, net 30/45/60, mobile wallets, and trade financing.

The Advantages of Starting B2B eCommerce in the FMCG Industry

Online marketplaces have several advantages for both consumers and companies, including simplified shopping for users and expanded market penetration for retailers. E-commerce offers a measure of autonomy to fast-moving consumer goods (FMCG) companies in particular. For instance, brands can, for instance, get access to untapped income sources, increase their present market coverage, and enter previously inaccessible locations owing to financial or other traditional expansion-related limitations. Several additional advantages of e-commerce for fast-moving consumer goods (FMCG) companies are discussed below.

  • Data collection: If we had to pick just one incentive to go with ecommerce, it would be the ability to collect data on your clients. More commonly purchased items, Purchasing patterns, buyer personas, and direct consumer feedback may all be gleaned from data, which can then be used to inform the design and testing of future goods and merchandising strategies.
  • Personalization: Online personalization and suggestions are carried out automatically, however offline personalization and recommendations for B2B upselling and cross-selling are quite challenging. In B2B, personalized experiences include presenting consumers with material that is relevant to them, such as pricing and items that have already been negotiated and agreed upon. Using a powerful recommendation engine, you may suggest alternative components or related items when before it would have been difficult to do so.
  • Advantage: Unlike your competitors, very few FMCG companies have already created a strong online presence. This is a once-in-a-lifetime chance to jump ahead of the competition by actively participating in e-commerce. Doing so will put you in the spotlight and pave the way for others to follow in your footsteps.
  • Improved buyers retention: Rates are a direct result of the emphasis on customer service that most B2B company place on competing in the marketplace. Due to the ever-shifting demands of consumers, e-commerce has emerged as a powerful tool for attracting new clients and keeping existing ones. Strong e-commerce portals allow fast-moving consumer goods (FMCG) businesses to give their customers up-to-date information on their products and services, including real-time inventory updates, self-service choices, and after-sale assistance.
  • Possibilities for advertising and product placement: It may be quite pricey to dominate a primarily offline market. To cut through the clutter of the competition, computerized customisation and suggestions are a godsend. In addition, SEO and other forms of digital marketing offer substantial benefits for relatively small investments.
  • Independence from intermediaries: While fast-moving consumer goods (FMCGs) often use distributors, you can cut out some middlemen in this setup that would have been necessary in the past. To better understand your target market, it might be helpful to speak with merchants on a one-on-one basis.

Replatforming of De Klok Dranken

Due to technological limits and excessive development costs, De Klok Dranken, a major FMCG company headquartered in the Netherlands, needed a new ecommerce solution. De Klok wanted a platform for online sales that would be suitable for the foreseeable future and would also be adaptable, scalable, user-friendly, and inexpensive.

One of the toughest parts of the project was replatforming off of the old system while keeping some features that De Klok found useful. One of De Klok’s primary concerns was the quality of the user experience; the new platform has to support a lot of features and grow with the market.

As a result of its low price, API-driven modularity, headless design, and ability to interact with both homegrown and external systems (such a content management systems or SAP), Ceymox Technologies was the clear winner. De Klok also had faith in Ceymox Technologies’ flexibility, anticipating that it would enable the platform to grow in line with the needs of the business and the needs of its customers.

Customers were more satisfied and loyal to De Klok Dranken once the changes were made. The website’s tailored content was greatly enhanced by the Internet of Things (IoT), current trends, and large amounts of data made available through the system’s integration with enterprise resource planning (ERP) and other platforms.

The Benefits of Using Ceymox Technologies for Fast-Moving Consumer Goods Online

If you are still on the fence about which e-commerce platform to choose, let me quickly go through the advantages of Ceymox Technologies:

  • Out-of-the-box B2B functionality: At Ceymox Technologies, we are having expertise in implementing highly advanced and out-of-the-box B2B functionalities in Magento that meet your business requirements. 
  • Transparent and reasonable pricing: Our project managers and sales team will first understand your requirement precisely, understand it, and then will present you with a quote mentioning all the details of the pricing of the project. Our pricing is highly reasonable and we promise to deliver the best quality.
  • Regular Updates: While the progress of the project, our project coordinator or managers will be giving you regular updates on the project and will also present the displayable prototype of your website. We understand that clients want to see their businesses going online and we try our best to provide them with the best experience.
  • Open for Changes: We understand that in today’s world, nothing is permanent. Technology is fast moving and so does the requirements can be. Thus, we are open for changes as well within the project cycle.

Conclusion:

For fast-moving consumer goods companies, e-commerce presents a golden opportunity for expansion. Now is the moment to make your mark in the digital world. The road to digital greatness is smoother with the appropriate e-commerce platform. At Ceymox Technologies, we always advise our clients to harness the technology and leverage it to the fullest. Let us know your requirements.

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