Disclaimer: This is neither a theory lesson on FMCG industry and how it works nor a dictum on the sure shots/winning areas.
It is an attempt to understand the causes of turmoil which is happening inside FMCG companies who are on one hand trying to battle external macroeconomic factors such as rising commodity prices, currency fluctuations, while another hand is dealt with nimble, fast, new-age competition, then there is this uphill task of managing internal systems and processes, the legacy of the old worlds.
Amazon says- It is earth’s most customer-centric company and they have no qualms about competition and short-term gains. Their entire focus is on how to better CX. The growth rate for this company is 20%+ Vs some of leading FMCG companies who are happy with flat or 1–2% organic growth. What are they missing?
Guess, people and companies are afraid and I don’t understand why. Is it lay-offs the fear of which will make me- a mid-manager not do things which make sense in the long term and just do enough to cling onto my job or it is fear of Mr. Peltz(or alikes) which do not let me place right bets as a CEO of an FMCG company. Whose loss is this? Time to think beyond TSR?