There is no question that technology has reshaped the Consumer and Retail industry. Mobile technology and social media allow customers to have access to shop where, when and however they want. They have access to make comparisons, read and make reviews and influence product and service ratings. This unprecedented consumer power means that companies that embrace it can thrive and those that ignore these changes risk failure.
Beyond technology, global markets have shifted. New demand for consumer goods is being driven by emerging markets, while developed markets lag behind. Asia is expected to overtake the West as the main consumer market. Globalized competition for resources may also create shortages and supply chain volatility affecting the Consumer Goods Industry. Techedge has helped its Consumer Goods clients understand these market forces, and the business process and technology context that can lead to exceptional solutions.
The significant disruption of technology, together with the changes in global demand trends, and anticipated volatility in labor and the supply chain all represent continuing radical transformation for the Industry. Understanding the industry trends, along with the processes, systems and technologies that can shape the right solutions is just the starting point. The approach and mindset of a solution partner can be that defining factor leading to breakthrough results.
Consumer Goods Trends and Ideas
CPG companies are struggling with digital disruption as the boundaries among manufacturers, retailers and consumers are blurring. Online and mobile sales are growing at impressive rates; emerging markets will soon add 1 billion more consumers as well as a new affluent middle class; digital and mobile channels will overcome the millions of physical stores that would be required to serve these new consumers. Next generation solutions will address this challenging environment through the following capabilities:
- Reshape corporate organizations and processes along segmentations of consumers and markets, rather than channels and geographies.
- Adopt vertical and horizontal multichannel options, not only seamless customer experience across channels (horizontal), but also harness profitable cross-channel hopping along the purchase journey (vertical), identifying the proper balance between showrooming and web rooming.
- Expanded product ranges as the constraints set by physical space will continue to decrease; long-tail assortments of products will become more and more important to build engaging consumer relationships in their shopping experience.
- Contextual based marketing, that will enable mass customization (e.g. individual pricing & promotions based on customer behavior and external factors) and foster co-creation approaches (e.g. customization of products according to individual features).