This year, the Consumer Products (CP) industry will continue to seek new and differentiated ways to engage with their consumers, while also managing evolving brand loyalties and shifting buying patterns. The tug-of-war dynamic facing the manufacturer-retailer relationship will persist. With these fundamental issues as a backdrop, this paper highlights four trends that will have a uniquely profound impact on the industry this year.
The Consumer Products industry is confronted with many of the same challenges faced in recent years. CP organizations will continue to seek new and differentiated ways to engage with their consumers, while also managing evolving brand loyalties and shifting buying patterns. Retailers will adapt to changing shopping preferences and manufacturers will fight the pricing pressures and shifting brand affinity from retail store brands.
Historically, the consumer products value chain was linear and straight forward. Consumer Products manufacturers partnered with long-standing suppliers to develop products. They then sold their products to retail customers for distribution through brick and mortar stores who, in turn, sold their products to consumers. However, with the internet firmly established as a key player in the shopping cycle – either as a destination for purchase or a vehicle for research and advocacy – the ability for CP companies to manage the evolution of various channels of distribution has become a more critical part of the strategic agenda.
Read more about the 2014 Consumer Products Trends in PDF below.