The past decade has introduced challenges to the retail sector, unlike any we’ve seen before. Consumers are changing, and so are their shopping habits: more than one billion people in Asia shop online, with internet and smartphone penetrations expected to reach 59% and 44% respectively by 2021. This surge in digital demand is wreaking havoc on brick-and-mortar stores, making it harder than ever to break even through face-to-face sales.

But despite this unprecedented disruptions, the emergence of ecommerce has given credence to the notion that retail isn’t dying, but reinventing itself. For FMCG companies in Singapore, ecommerce isn’t just a chance to adapt to new trends. It’s a unique opportunity to rethink supply chains, re-evaluate distribution and start creating better, faster and more meaningful connections with their customers.

Why Is Ecommerce the Future for the FMCG Industry

It’s all well and good to point out changing consumer patterns, but such a monumental shift in business strategy needs to be justified. The ongoing juggle for FMCG wholesale companies in Singapore regarding quality, price, supply, logistics, customer experience and everything in between makes efficiency and cost savings crucial – and ecommerce makes this achievable in a changing world.

Product diversity

Using ecommerce for FMCG, you can offer customers access to thousands of products across countless categories, and all under a single platform. Without the physical restriction of stocking everything under one roof, companies in Singapore can manage inventory with much greater flexibility without any sacrifice on the speed of supply and delivery.

Logistics

60% of consumers in Southeast Asia are willing to pay more for same-day delivery, which highlights the widespread desire for wholesale and retail products that arrive on demand. Ecommerce makes it easier to handle the extra stress placed on your supply and distribution systems by smoothly integrating all logistical requirements, allowing you to meet customer demands while maintaining efficiency.

Cost efficiency

Ecommerce has empowered a growing global economy that transcends borders. Unlike physical stores which can only cater to specific areas, ecommerce platforms let you appeal to an unlimited number of markets with a single investment. Plus, you slash the overheads associated with brick-and-mortar including property rent and purchase, energy usage and staff requirements.

Simplicity

The modern consumer is well-attuned to the ease and simplicity of ecommerce. In 2019, more than 90% of internet users in Southeast Asia searched online for a product or service, and more than 80% ended up making a purchase. It’s not just consumers who are using ecommerce to save time and improve their experience: business owners can focus on optimising a single platform without worrying about running a network of stores.

Marketing

Ecommerce has completely transformed how businesses market themselves in Singapore and all over the world, creating previously non-existent opportunities to reach specific demographics all over the world. Unlike the past, where marketing for FMCG companies was a lot of guesswork, it’s now a reliable and affordable pathway to finding and building relationships with loyal customers.

Analytics & Automation

While data collection and analysis were traditionally reserved for Fortune 500 companies with deep pockets, smaller businesses are now able to reap the benefits thanks to the evolution of automation. FMCG companies can use data generated through ecommerce platforms to gain unique insights into user behaviour and reach the right customers at the right time – all without an unrealistic investment.

How Can You Leverage Direct Wholesale & Simplify this Adoption?

The benefits of transitioning to the digital space are undeniable, but it can be a complicated proposition for FMCG companies in Singapore that are still entrenched in traditional retail. This transition is drastically eased with the support of an ecommerce platform like Direct Wholesale, which operates on a broad and well-established digital ecosystem run by an experienced team familiar with adapting to evolving technology.