INDUSTRY TRENDS – FMCG

INDUSTRY 4.0 – TRENDS IN THE FMCG SECTOR

Consumer-goods companies have been at the forefront of digital innovation in commercial areas such as marketing and sales.
Supply chain and operations have been less of a focus for their digital efforts, but recently, leading consumer-goods companies
have started to explore the use of digital solutions in manufacturing processes. This is a natural development; Industry 4.0 —
the digitization of the entire manufacturing value chain—is slowly becoming a reality

1. Consumer-goods companies have begun to apply predictive analytics to maintenance activities,

decreasing maintenance costs by 10 to 40 percent.

2. 3-D printing - Consumer-goods companies have been using 3-D technology to facilitate product
design and the manufacture of samples. Companies also use 3-D printing to print low-frequency
replacement spare parts on demand at a production site rather than keeping them in stock or
having them shipped after a breakdown.

3. FMCG companies are also applying digital tools to lean transformations and using advanced
analytics to optimize specific manufacturing processes.
COMPANY SPECIFIC TRENDS – FMCG
 Indian telecom giants Bharti Airtel and Reliance Jio are in talks with Hindustan Unilever (HUL) for tie-ups to offer
localized discounts on the latter’s home and personal care brands through neighborhood stores. telemapping consumers
will give HUL cloud-based analytics for better insight into consumer behavior.The business model chalked out so far will
be like this - an Airtel or Jio customer will get higher discount vouchers of HUL products on the mobile app if he/she
moves up the tariff plan.
 Mukesh Ambani-led Reliance Industries' entry into online retailing will help expand the current 15,000 digitised retail
stores to over 5 million by 2023. As much as 90 per cent of India's USD 700 billion retail market is unorganised, made
up mostly of neighbourhood kirana stores selling groceries and other sundries.These kirana stores are keen to upgrade
their tech and this is driving a wave of modernization as per a study by Merrill Lynch.
 Sushant Rabra, Partner Digital Consulting Services, KPMG, sheds light on key highlights including digital commerce has
started contributing 6-7% of many FMCG companies in India.The Indian e-retail market has grown three times in the
total FMCG retail sales in the last two years. As per industry data, 40% of FMCG purchases in some select categories
will go online by 2020.
INDUSTRY TRENDS – BFSI
INDUSTRY 4.0 – BFSI AND THE GROWTH OF FINTECHS

The significantly cash driven Indian economy has taken advantage of the Fintech opportunity. The variety of services
provided in this sector are immense and Fintech has changed the way daily banking transactions are conducted.
Here are some key sector trends -

1. Fintech in India is especially advantageous, since the country boasts of an unrivalled youth demographic
which is rapidly growing. The Indian Fintech software market is poised to touch USD 2.4 billion by 2020.

2. The industry is likely to continue its current growth trajectory, with the global Fintech software and
services sector predicted to touch USD 45 billion by 2020 at a Compound Annual Growth Rate (CAGR)
of 7.1%.

3. The financial services market in India is primarily untapped, with 40% of the population having no
association with any bank and more than 80% of the transactions carried out through cash. This
represents an opportunity for Fintech start-ups to massively spread their wings in different segments.
INDUSTRY PLAYERS – BFSI AND FINTECH

 Flipkart’s board recently authorized the PhonePe Pvt Ltd. unit to become a new entity and explore raising $1
billion from outside investors at a valuation of as much as $10 billion. The move highlights the Fintech explosion in
India and Flipkart, now owned by Walmart aims to compete with PayTM using PhonePe.
 Tech Mahindra announced that aims at addressing the growing business opportunities in the SAARC region,
under the digital transformation charter of Bangladesh by leveraging innovative and next generation technologies.
IN the banking space,Tech Mahindra is now focusing on digitization of core banking processes, customer
experience, customer relationship management and security. The aim is to drive digital transformation for large
banks and move towards a cashless economy.
 Yes Bank, India’s fourth-largest private sector Bank, announced the launch of its lending program, Smart Edge for
Micro, Small and Medium Enterprises (MSMEs). Smart Edge, a YES GST initiative is a first of its kind surrogate
lending model wherein no financial statements will be required and credit appraisal will be done basis data-points
pulled from GST returns and operative Bank accounts of the MSME.