Most FMCG companies have been more or less shielded from the challenge of disruptive new business models by having brands with strong equities, positive relationships with retailers, and expensive manufacturing set-ups. However, going forward, things are likely to change. Some trends have emerged in recent times, that seem to create a threatening environment for the FMCG trading companies in Dubai :

The millennial effect: consumers under the age of 35 are fundamentally different from older generations which, in many ways, makes mass brands and channels ill-suited to them. They show a preference for newer brands, especially when it comes to food products. They also tend to believe that newer brands are better or more innovative, and they are not too keen to shop in mass channels.

Digital intimacy: the digital world has taken the engagement between brands and consumers by storm. It has also revolutionized how companies learn about and engage with consumers. There has been a steady increase in the volume of data being collected every year, which has not only boosted companies’ capabilities but also consumer expectations.Most FMCG manufacturing companies in Dubai are well on their part to embrace digital but still have a long way to go- more so when it comes to adopting data-driven marketing and sales practices.

Explosion of small brands: several small consumer-goods companies are trying to attain fast-paced growth by falling back on millennial preferences and digital marketing. These

brands are not easily identifiable since they are often sold online or in channels not covered by the syndicated data that, since ages, the industry has heavily relied on.

Availability over desirability: People have an insatiable need for convenience. It would not be an overstatement to say that time has come to be the most valued commodity, which means brands which were once driven by being the most attractive, are quickly coming to terms with the fact that desirability has taken a backseat and availability is now the most important factor.

With the market growing more challenging by the day, the big players of the industry need to have a thorough assessment of their company’s true situation and take decisive actions accordingly. It is not a feasible idea to wait for the good times to come back, for the leading FMCG companies in Dubai will soon find their options steadily dwindling,while their more far-sighted competitors will surge past them in the race.