Digital Disruption Brings a Welcome Change
E-commerce penetration is expected to grow from around 6% in 2015 to 17% in 2025. The growth translates to approximately $450 billion of profit migration from offline channels to online.1 One reason for this drastic development is precisely due to online channels presenting customers with more options and recommendations. Customer centricity is therefore key and requires companies to identify digital opportunities, which are relevant to their business context and consumers.
However, digitalization is still in the early stages of development for many fast-moving consumer goods (FMCG) companies. Even well-known brands are still at crossroads in how they can manage the interface process with their consumers. COVID-19 is accelerating the shift of customer journeys turning online and will change customer purchase behaviors sustainably. FMCG companies must rethink their go-to-market now and react, otherwise they risk falling behind competition and loosing market shares.
As a result, players from the FMCG industry need to take advantage of the opportunities digital transformations provide and complement their traditional products and business services with new digital offerings. The aim is to transform the business over time.
Challenges Hinder Fast Digitalization Transformation Opportunities
- A lack of awareness in switching from push to pull logic marketing leads to an increase in complexity
- Insufficient data management centralization and failure to restructure the organization internally to digital processes means that IT solutions and customer relationship management systems are not equally accessible to everyone in the organization
- By utilizing the full potential of all digital technologies across analytics, cloud, mobile, and social media, the digital transformation process must be addressed strategically
- One of the biggest challenges for companies is to identify suitable, digital opportunities in the first place due to lack of direct consumer relationship and little access to end consumer data
- The digital revolution is often seen as a technology issue by companies. As a reaction, another channel is added to reach consumers. Channel implementation must be addressed strategically across the company and not just tactically led by the IT function
- Numerous options and recommendations accessible online, prompting customer centricity across the customer journey
Digital measures help in leveraging marketing opportunities
Increasing digital interactions
Digital interactions are having an impact on how consumers are learning about and engaging with brands. The connection allows companies to engage with their consumers throughout the entire customer decision journey
Being customer oriented
80% of consumers admit they are more likely to buy from a company that knows their purchase history and treats them as individuals. Being customer-centric allows companies to rewrite their channel strategies and channel-management approaches in assorting prices and promoting products2
Digital platforms and communities as a D2C opportunity to establish direct relationships with end customers
Internal data shared between sales, marketing, R&D, supply chain and consumer service, provide the capabilities to deliver customized messages and offers, and the agility to adjust quickly as consumer needs change
Building up digital analysis
In the Marketing and Sales process of the value chain, digital analyses are geared towards improving commercial performance and customer-centricity allowing for a seamless alignment between mobile, social and e-commerce data
We assist global FMGC companies in identifying and developing a suitable digital strategy. The first "digital health check" provides the company with a holistic overview of the digital status quo of the FMCG brand. In our analysis, we consider market trends & competition, brand reputation, customer journey, distribution strategy, organic visibility in Google (branded and non-branded keywords), performance marketing activities and social media. In doing so, OMMAX outlines strategic recommendations to leverage the digital opportunities of the brand to the utmost. We want to bring immediate digital value to our clients and categorize improvement measures by the ease of implementation (quick win, medium, high effort), business impact (low, medium, high), and prioritization (low, medium, high).
Our international team has assisted >700 realized projects in digital strategy, digital operational excellence, data science, and transaction advisory services. With a team that speaks over 20 languages, and a 50% female-male ratio, we ensure both effective communication and representation throughout the advisory process.
How We Help Our Clients
The KLAFS Case
KLAFS is the leading sauna manufacturer in Europe in the premium segment. In 1952, Erich Klafs delivered the first Erich Klafs Sauna, the first entirely prefabricated sauna for home installation. Before that, saunas were built on-site over several days - now, sophisticated, high-quality, and affordable saunas can be set up in no time.
The BHS tabletop case
BHS tabletop AG is a mid-sized German company with around 750 employees, established in 1998. The company is a leading manufacturer and supplier of professional, functional, inspiring tableware for all industries. Paired with flexible, individual, and digital service offerings, it operates mainly in Europe and the US. With its current product and service portfolio, BHS tabletops generated a revenue of over €80 Million.
The MDO Case
To increase their digital value in the U.S., European and Middle Eastern Markets, MDO, teamed up with OMMAX to develop and execute an omni-channel strategy. OMMAX has supported MDO with a go-to-market strategy, an e-commerce relaunch, lead generation and CRM, with the overriding goal of establishing the company internationally.
- +343% monthly B2C revenue growth YoY
- +569% e-commerce conversion rate uplift in the core market within 12 months
- +45% paid advertising click-through-rate increase within 12 months
The Rossmann Case
Dirk Rossmann opened his first store in Hanover in 1972. Since then, Dirk Rossmann GmbH has become the second-largest drugstore chain in Germany and achieved a turnover of €9.46 billion throughout Europe.
- Identified both weaknesses and strengths directly within its marketing operation
- Challenged modern go-to-market strategies
- Developed a quick solution and straightforward path towards success and market relevance