FMCG business model disrupted.

Out with the old mass market advertising and business model, and in with the new.

I shave, it costs a fortune, so much that I switched to disposable shavers without all the fatuous claims and high prices of the big brands. Each morning  when I look in the mirror to shave I see a 60 year old bloke, a bit worse for wear, the square jaw rounded by too much living, extensive forehead, and none of this will be changed by using a 5 dollar blade instead of one that costs 50 cents.

However, I never saw the disruptive marketing opportunity demonstrated by this story about the Dollar Shave Club, but it is blindingly obvious when pointed out, in this case by my e-buddy Bill Waddell.

What other categories are so ripe for change?

Shampoo & conditioner, household cleaners, personal hygiene, are the three that jump to my mind, all associated with vanity.

The FMCG business model has changed, and for high value products that are easily mailed, like shavers, is breaking. A few categories are yet to have their margins decimated by a combination of house-brands and direct e-sales, but it will not be too long. Anything that can be sourced via the web, where the savings are sufficiently significant to off-set the inconvenience of having to remember to make a few clicks on your device, is at risk.

The fancy, expensive nonsensical advertising appealing to vanity rather than real consumer benefits, that support these products has had its day.

About strategyaudit

StrategyAudit is a boutique strategy and marketing consultancy concentrating on the challenges of the medium sized manufacturing businesses that make up the backbone of our economy. The particular focus is on their strategic and marketing development. as well as the business and operational efficiency improvements necessary for day to day commercial survival. We not only give advice, we go down "into the weeds" to ensure and enable implementation.
This entry was posted in Change, Lean, Marketing and tagged , , , , . Bookmark the permalink.

1 Response to FMCG business model disrupted.

  1. Pingback: Consumers and FMCG retail control | StrategyAudit

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s