Almost half of the growth in the FMCG industry over the next 3 years will take place in Emerging Markets outside of ChinaAI-powered Open commerce will be the key to FMCG’s winning in these markets90% + of B2B trade is still conducted offline, current ecommerce solutions will only go so far in bringing this trade onlineRedCloud’s intelligent open commerce platform, which currently has over 300,000 users, empowers FMCG brands to dynamically transform trading relationships with their distribution channels and millions of micro retailersWith some of the largest product ranges in the world, the need for AI-powered search, order and trade is critical to cost, convenience and choice for the FMCGs in food, beverage, and essential consumer supplies.
LONDON, June 16, 2023 /PRNewswire/ — Almost half of the growth in the FMCG industry over the next 3 years will take place in Emerging Markets outside of China. It’s a $1 trillion dollar opportunity for brands that can successfully navigate these markets. RedCloud Technologies, the company behind the world’s first open commerce platform, are bringing the latest in generative AI technology to help businesses further seize this sizable opportunity.
RedCloud has made a number of new AI expert hires and has formed several partnerships with cutting-edge AI companies. They now have number of updates to their intelligent open commerce platform in progress which include:
Powering their search and order functionality with large language models to reduce frictionCreating a new level of AI driven microtargeting for in-app campaigns and promotionsUtilising machine learning to create highly advanced predictive analyticsAugmenting their data processing operations with AI powered optimisation tools
For most businesses in the FMCG market, the ability to buy and sell efficiently is key. But in EMDEs – the areas that also have the greatest growth potential – barriers remain. RedCloud’s current platform has already created a fairer, more profitable trading system, bringing over 300,000 local merchants online for the first time, allowing them to trade instantly with their distributors and FMCGs. Their latest updates will go one step further, by fusing their search functionality with LLM’s, they will reduce the time spent ordering by over 80%. This frees up time local retailers could be using to trade in the digital economy.
It’s not just local retailers who will benefit though from the upcoming updates to the RedCloud platform. FMCG brands and distributors are also set to reap the benefits of RedCloud’s commitment to generative AI. Price volatility means businesses are often hard-pressed to keep up with the macroeconomic changes affecting their markets. RedCloud is therefore undertaking several updates to its existing dynamic pricing tools.
Their real-time data insights powered by machine learning creates automated pricing recommendations that could increase a company’s revenue by around 15%. They are also developing AI into their insights tool to allow for the creation of highly accurate predictive analytics. This will enable companies to further improve their forecasting with confidence, remaining ahead of macroeconomic curves and market trends.
RedCloud is also using generative AI to help companies reduce their advertising costs. FMCG brands can spend anything between 5%-15% of their operating budget on advertising, however on traditional channels, 90% goes unseen and conversion rates are continuing to reduce. RedCloud is supercharging its search and promotions tool with machine learning to further improve its targeting capabilities, allowing for micro-segmentation of audiences and campaigns. This will allow companies to create more efficient and effective digital advertising campaigns, allocating spend only where it’s truly valuable.
Justin Floyd, founder and CEO of RedCloud, comments: ‘The future of B2B commerce is open and conversational. This overcomes the lack of trust in traditional and big tech e-commerce platforms, enabling users to place orders in a familiar way and build sustainable relationships with sellers – regardless of whether there’s a human on the other end or not. ‘
RedCloud’s AI lead Daniel Chada, adds: ‘Generative AI, which includes technologies like Generative Adversarial Networks (GANs) and language models like ChatGPT, can play a significant role in addressing the challenges of digitising B2B commerce. Managing user experience, data integration, security, privacy, and regulatory compliance, it provides a simple yet sophisticated solution to the most pressing problems faced in the FMCG space. And one that can be easily adopted in emerging markets.’
About RedCloud
RedCloud is a global technology company, headquartered in London committed to bringing commerce everywhere, especially in emerging markets, by digitally connecting FMCG brands, distributors, and merchants, enabling them to search smarter, sell better, and trade simpler.
With its proprietary Open Commerce platform, RedCloud is poised to drive economic growth in the FMCG industry by providing new levels of visibility and facilitating strategic decision-making based on real-time data analysis syndicated across the distribution chain.
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