In January 2007, Netflix launched its streaming service. They now have 301.6 million subscribers worldwide. They added a record breaking 18.9 million subscribers in Q4 of 2024.
In June 2007, Apple launched the iPhone. There are now 4.88 billion smartphone users worldwide. This is 60.4% of the global population.
In September 2016, TikTok was launched. It now has 1.58 billion monthly active users worldwide. The average user spends 52 minutes a day on the app (70 minutes a day in the UK).
In November 2023, ChatGPT was launched. It now has over 400 million weekly users worldwide. It reached 1 million users within 5 days of its launch. The fastest user acquisition in digital history.
Most of you reading this will have a subscription to at least one streaming service. Will own a smartphone. Will use at least one social media app. Have used an AI tool recently.
You can probably all remember a time when these things didn’t exist. Now you probably can’t imagine a life without them.
Why are we talking about this? When you’re in the FMCG game it can be easy to think that you’re operating in a mature, low growth industry.
Needing to squeeze out the next bit of volume and value growth. Needing to do it this year. Then do it again next year. Then the following year.
But does it have to be that way?
In most FMCG categories there is A LOT of headroom for growth. A lot more than we often think.
For instance, how many of you have bought microwaveable rice? Probably most of you. Gone are the days of it taking 15 minutes to boil the wrong amount.
For instance, how many of you have bought a low or no alcohol product? Probably most of you. Gone are the days of an insipid bottle of Kaliber being your only option.
Too often we have the tendency to think SMALL. What are the small things we can do to get a bit of volume here? A bit of value there?
Instead we should think BIG. What are the big things we can do to step change category growth.
The size of the opportunity in many categories is HUGE. So, where can you look?
Look at other markets (countries). Where is consumption of your category highest? What are they doing in that market? What could you adapt and apply?
Too often we focus on the differences between markets. Instead, focus on the commonalities. There are usually more of them than you think.
Look at the broader universe. If you’re a snack, look at the opportunity in total snacking. If you’re a drink, look at the opportunity in total drinks. If you’re a meal component, look at the opportunity in total meals.
Too often we think narrow – our immediate competitive set. Instead, think broader – the wider competitive set. When you do, the opportunity multiplies.
Look at potential usage occasions. If you’re a mayonnaise, how many sandwich occasions are you used in? Maybe 10-20% of all occasions? If so, that’s 80-90% of headroom. If you’re a fabric conditioner, what % of all washes are you used in? If you’re a skincare product, how many post shower occasions are you in?
Too often we look at how often our products are used. Instead, we need to look at how often they could be used.
Look at closing the gap. Understand what consumers currently do. Then compare that to what they should do. For instance, we’re supposed to eat 5 portions of fruit & veg a day. Most of us don’t. We’re supposed to change our (manual) toothbrush every 3 months. Most of us don’t. The average is every 6 months. Get everybody to do what they should be doing and you double sales.
Too often we look at what currently happens. Instead, we need to look at what could or should happen.
Look at resetting behaviours. Think about the big new behaviours that you could establish in your category. If you’re a mint or gum what about being used after every meal? If you’re a health shot what about a drink every day at the same time each day? If you’re a deodorant what about being used all over the body – like the new Sure “All Body” deodorant.
Too often we think about the current norms. Instead, try to establish the new norms.
When you think small… your ideas are likely to be smaller and growth is likely to be smaller.
When you think BIG… your ideas are likely to be BIGGER and your growth is likely to be BIGGER.
If you’re not thinking BIG someone else will be.
Feel free to forward. Have a great weekend. Speak to you in a fortnight.