There are a variety of market forces converging to influence how consumer products companies consider everything from which markets to target for future growth opportunities, to how to reach, engage and inspire consumers and how to ensure long-term sustainable availability of resources and materials required to ensure sufficient supply to meet consumer demand in an increasingly anytime, anywhere world.
The scale of this change is unprecedented, and it’s forcing consumer products companies to fundamentally reconsider how they organize and operate to meet consumers’ needs.
So, what are these trends driving so much change? Let’s take a closer look, as well as consider steps consumer products companies are taking to address both the near-term challenges and longer-term opportunities associated with each.
Global demographic shifts: People are living differently
By 2030, 5 billion people – nearly two thirds of the global population – could be middle class.
First, global consumer demographics are shifting fast. Consumers are living closer together, longer and healthier, richer and with new and different lifestyles, preferences and values. Urbanization, increasing life expectancy globally, increasing spending power from upwardly mobile middle and lower classes and evolving lifestyles all point to a new world of consumers that consumer products companies have to strive to serve in innovative and different ways in order to achieve near-term and long-term growth objectives.
Competition for scarce resources: Resources are increasingly in demand
Next, competition for resources is becoming increasingly acute. Commodities, energy and other resources are increasingly constrained due to factors including global population growth, growing demand for key categories, and climate and weather variability. These issues require consumer products companies to emphasize sustainability, corporate social responsibility, operational efficiency and supply chain resiliency.
Instability, volatility, and uncertainty: The new normal
Operating globally not only means facing increasing competition for scarce resources, it also means dealing with the added complexity of economic volatility, political instability, unpredictable disruptions due to weather or natural disasters and ongoing global regulatory shifts. Growth in the midst of this uncertainty means exploring contingencies, mitigating risks and promoting resiliency.
Technology adoption: An interconnected world
Finally, consumers globally are increasingly online, mobile, social and interconnected with one another. Enabling technologies are empowering consumers in new ways every day, putting the consumer in control of buying process. Digital, mobile and social are all integral parts of the consumer path to purchase and consumers demand relevant, personal, and engaging experiences at every step along the way, challenging consumer products companies to leverage these same technologies to reach, engage and serve consumers via marketing, socializing and personalizing brand experiences
Staying ahead of the trends
Consumer products companies have big challenges ahead of them due to the mega-trends in the industry. The best companies will embrace the change and think in new and innovative ways to better reach, engage, and serve consumers because where there is challenge, there is also opportunity.
Learn more about how the trends are impacting the consumer products industry at the Consumer Goods Sales and Marketing Summit June 9-11th to discover and explore strategies focused on digital marketing, big data, mobile, trade promotions, consumer insights and much more! Follow the conversation on Twitter with #cgsm14!
For more information on the consumer products industry, explore the Enabling the Consumer-Driven Enterprise Virtual Event for on-demand webcast replays and much more!