CONSUMER GOODS

Bunuri de larg consum

Local companies vulnerabilities

No doubt, majority of local companies in the consumer goods sector are in financial distress today especially those with not so much resources and capabilities.

Increase of similar products, greater products complexity correlated with profitability reduction

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…some regulations (ex. environment regulation) and labor costs will push up operating expenses.

Investments in automation and digitization could increase depreciation on capital expenditures, even as they enable efficiency gains over time. To equip companies for what lies ahead their leaders must formulate thoughtful answers at the following questions:

To transform home field advantage local based companies must engage distinct groups of consumers inside and outside of the “field”, during 365 days a year.

On this perspective local companies should reconsider their approach to consumer engagement:

    • Reanalyze your target
    • Make it personal (You can!)
    • Think holistically about experience
    • Engage year round
    • Recognize loyalty
  

Predictability vs. Uncertainty

To maintain their competitive advantage, local companies must anticipate trends evolution (predictable and unpredictable) and begin design scenarios andbuild performing strategies and plans in order to manage the impact of these trends…

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TRENDS

    • The changing of consumer behavior;
    • Geopolitical evolution;
    • New patterns of consumption;
    • Technological advancements;
    • Structural industry shifts.

Certain trends will follow a predictable pattern but others may take more surprising paths. Each trend will have a different level of impact, some will affect more geographic regions, and some will cause bigger shifts in consumer spending. Trends won’t affect all consumer markets and product categories equally.

SCENARIOS

To prepare for low-predictable trends local companies must consider and debate a range of scenarios for how the global and local trends might unfold:

    • Defining and monitoring indicators that warning the likelihood of each scenario materializing;
    • Analyze the impact of each scenario over the value chain, industry structure and competitive landscape;
    • Prepare a portfolio of viable options;
    • Synchronize investments with new information provided by digitization, big databases.
 


2020?

To be prepared for future challenges companies must formulate answers at the following questions:

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  • How can they engage consumers in an ONGOING DIALOGUE?
  • How resources will be REALLOCATING swiftly at scale?