Online networks are helping brands wade through the highly competitive USD270bn industry
Social media’s ability to amplify word-of-mouth marketing has been transforming the fast-moving consumer goods (FMCG) landscape in the oil-rich Gulf Cooperation Council (GCC) region, according to DMN, a UAE-based social media and digital marketing service provider.
Tariq Abu Samra, Head of Business Development at DMN, says companies in the FMCG industry can significantly benefit from a properly executed social media strategy, which holds the potential to effectively reach a wider and more diverse consumer base. FMCG, also known as the consumer packaged goods sector, comprises a wide range of essential products that are used by consumers on a daily basis from personal care and laundry items, to over-the-counter medicines and food and beverages.
“FMCG has become a very competitive industry. We’re talking about a sector that has potentially dozens of brands vying in one segment alone. In a region like the GCC, it is common to find local and international brands that appeal to the region’s multinational population,” Tariq says.
According to recent industry estimates, the GCC’s FMCG market will likely cross the USD270-billion mark by 2018. This comes as the regional population is expected to expand to around 53.5 million by 2020. Consequently, the Internet penetration rate in the GCC is also on an uptrend, growing from the 2013 level of 54.99% to 66.82% by 2017.
“Tapping social media to promote your brand amidst a sea of competitors is crucial in a market such as the GCC. While it has the potential to influence consumers’ buying habits, social media is also an ideal tool to bring brands and consumers closer, helping companies to reach out and engage with consumers,” adds Tariq.