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