Success centres on resilient, sustainable value chains and compliance – EY’s Olivier Gergele

He stressed that companies can stay ahead by driving personalisation, seamless experiences, and embedding sustainability at the core of their operations.

The FMCG industry in Asia-Pacific is rapidly evolving as companies balance affordability with rising demands for health, sustainability, and ethics, whilst harnessing new technologies to drive growth.

Olivier Gergele, Asean Consumer Products & Retail Leader at EY, shared his in-depth perspectives, bringing over 20 years of consulting, consumer, and retail industry experience. He advises organisations on strategy development, operating models, go-to-market approaches, and large-scale commercial and cost transformation programmes.

His expertise covers projects on growth strategies, innovation, value creation, go-to-market, sales and marketing effectiveness, profitability improvement, cost and complexity reduction, change management, and large-scale transformation.

As a judge at the FMCG Asia Awards 2025, Gergele discussed how FMCG companies can navigate today’s complexities and position themselves for long-term success in a fast-evolving market.

Drawing from your extensive experience, what key factors do you see shaping the FMCG  industry in the Asia Pacific today?

The FMCG industry in Asia-Pacific is being shaped by three major forces.

First, consumers are redefining value. They are looking for affordability but also expect products and services to reflect personal priorities such as health, sustainability, and ethics. Conscious consumerism is now a key driver of brand choice. Relatedly, the sector is also actively pursuing sustainability through decarbonisation, circularity, and waste reduction within the value chain.

Second, technology is transforming the sector at speed, from generative artificial intelligence (AI) to agentic AI, data and predictive analytics, and immersive technologies like augmented and virtual reality. These tools enable hyper-personalisation whilst also putting cybersecurity at the forefront.

Lastly, companies are navigating a more complex operating environment. Economic headwinds, tariffs, trade restrictions, inflation, and stringent and fragmented consumer protection regulations across different jurisdictions are reshaping supply chains, pricing strategies, and investment decisions towards regional or local networks. Today, success depends on resilience, both in building sustainable value chains that can withstand geopolitical disruptions and in regulatory compliance.

How can FMCG companies adapt their operating models to changing consumer expectations?

FMCG companies can stay ahead of shifting consumer expectations through personalisation, creating seamless experiences, and embedding sustainability at the core.

Consumer-centric innovation is critical. Modern operating models must be data-native, embedding AI and analytics in everything from demand forecasting to hyper-personalised marketing, supply chain planning, and customer service. Concurrently, these models must be agile to shorten product cycles and respond quickly to market shifts and changing consumer preferences.

Omnichannel orchestration must move from pilot projects to scale. Consumers expect the same seamless experience whether they shop online or in-store, with consistent inventory availability, pricing, and promotions. This requires tighter integration of planning, fulfilment, and engagement across platforms.

Companies must also put sustainability and purpose-driven branding at the centre of their growth strategies. Circular business models, transparency in sourcing and ingredients, and product innovation in areas like biodegradable packaging and plant-based offerings are no longer optional.

Through these actions, FMCG companies can build trust and relevance in an increasingly value-driven market.

How can businesses reduce cost and complexity without compromising quality or brand value?

Businesses can reduce cost and complexity without compromising quality or brand value through three strategic approaches.

Zero-based redesign (ZBR) of operating models that goes beyond traditional budgeting allows companies to rethink cost structures from first principles so that every dollar drives strategic value and structural efficiency rather than just episodic cuts.

Intelligent automation and shared services integration can streamline back-office and supply chain operations. By leveraging agentic AI and automation, companies can achieve sustainable cost reductions without negatively impacting consumer-facing quality.

Stock keeping unit (SKU) rationalisation guided by consumer data and brand architecture reduces complexity without eroding brand clarity or shelf impact, ensuring that cost reductions align with consumer preferences and long-term brand value.

What are the most effective ways for FMCG companies to turn innovation into sustained growth?

To turn innovation into sustained growth, FMCG companies can create digitally enabled experimentation environments. Through virtual stores, AI-led concept testing and digital twins, they can drive smarter decisions by refining innovative ideas before committing capital.

A "fail fast, scale faster" operating culture embeds rapid prototyping, small-market pilots, and agile investment cycles into the operating model, allowing companies to de-risk innovation whilst maximising learnings and return on investment (ROI).

At the same time, an open innovation ecosystem with startups, academia and technology firms brings in fresh ideas and disruptive solutions, accelerating time-to-market, and strengthening competitive edge.

In what ways should FMCG leaders manage today’s business whilst positioning themselves for future opportunities?

Sustaining growth in the FMCG sector requires leaders to manage operational discipline as they actively shape tomorrow’s opportunities. They need to adopt a dual operating model, running their core business with operational excellence whilst ringfencing resources, governance, and key performance indicators (KPIs) for future growth bets. This prevents distraction and dilution, ensuring both areas can thrive in parallel.

Building an agile culture and leadership is equally important. Flattened decision-making structures, cross-functional squads and adaptive leaders create the speed and resilience needed to navigate volatility and support innovation.

Finally, upskilling the frontline through digital enablement extends the transformation beyond headquarters. Equipping distributors and field teams with digital tools, data literacy, and agile ways of working builds stronger execution and long-term readiness.

As a returning judge at the FMCG Asia Awards, what new attributes, achievements, or innovations will you prioritise when evaluating this year’s nominees?

As a returning judge at the FMCG Asia Awards, I will be looking for companies that demonstrate resilience and flexibility to swiftly adapt to market disruptions, seize opportunities and mitigate risks. This includes showcasing digital native growth through community-led engagement, creator ecosystems, and platform-native commerce. I will also be watching for impactful use of AI, predictive analytics or digital twins that move the needle on revenue or margins. Equally important is inclusive innovation for underserved segments such as rural consumers, elderly populations, and the differently abled, delivered at scale and with empathy. Finally, I will value sustainability with business impact, like margin resilience, consumer loyalty, or cost reduction.

As nominees present their work and achievements, I extend my best wishes to all participants. May your innovative spirit and dedication to excellence shine brightly throughout the FMCG Asia Awards 2025.

Good luck to each of you as you continue to set new benchmarks for the consumer products and retail sector!