According to Nielsen, 40 per cent of FMCG brands sold in supermarkets in the last 12 months were done so on promotion, up from 30 per cent in 2009. The research says that 48 per cent of these sales would have happened anyway, regardless of whether the product was on promotion. That’s $11 billion in sales discounting that didn’t need to happen.
That’s money that’s being diverted from advertising spend and product innovation, both of which are needed to drive the longer-term health of individual FMCG brands and the category as a whole.