Key growth drivers for consumer goods will be supply chain visibility and demand for healthier, sustainable and personalised products, a joint report by PwC and The Consumer Goods Forum says.
Launched at The Consumer Goods Forum virtual Global Summit 2021, the What’s next: How consumer goods leaders envision tomorrow incorporated insights from interviews with 16 industry leaders on how they saw the future of five macro trends that were already taking shape before the pandemic, and continue to influence what’s next for consumer markets.
The five trends were: the store of the future; brand relevance; digital supply chain; the future of food; and ESG ascendance.
PwC global consumer markets leader Sabine Durand-Hayes said sophisticated digital capabilities were now a must for CEOs. “The challenge for companies will be to re-examine their supply chains to develop a deeper understanding of risk in terms of sourcing and potential disruptions while considering alternative, sustainable sourcing practices,” she said.
The report said a wide range of industry changes that were accelerated by COVID-19, were also likely to last, including: the fusing of physical and online worlds in retail; ESG being recognised as one of the key drivers of corporate value, and the growing demand for tailored product offerings.
According to the respondents, brands that can meet consumer demands for greater relevance, care and personalisation can realise benefits that ultimately go to the bottom line. PwC said the findings suggested that while trust might not be a physical asset, it can have tangible business results. “The more consumers trust brands, the more willing they are to engage with them and share personal information, creating a virtuous circle that benefits both parties,” it said.
The Consumer Goods Forum managing director Wai-Chan Chan said the challenge for companies now, is to prove it can care for the planet and its people, meet consumers’ needs, and do it all in a cost-effective way. “Those companies that find the right balance will convert trust into brand equity. We are confident our members can be at the forefront of the change that is needed as we look to build better lives through better business,” Chan said.
The full report is here.
