Read our updated report here: 2020 Consumer Products Industry Trends
Only 12% of the Fortune 500 from 1955 remains in business today. Consolidation, brand erosion, technological innovation, retailer growth, and the emergence of digital competition have impacted the composition of today’s largest global businesses.
The consumer products industry, once known for its role as a driver of economic stability, is facing more competition today than ever before. The industry has hit a point of critical mass where consumer expectations, market dynamics, and technological breakthroughs have created a landscape ripe for transformation. Being relevant in the consumer products market now requires an intense focus on the way your business competes, engages consumers, and drives decision-making.
A Consumer-Centric Organization is the Only Option in the 21st Century
Don’t ﬁnd what works for organizations like yours – ﬁnd what works for consumers like yours.
Consumer products (CP) companies today are bombarded from all sides with directives to become leaner, faster, ﬂatter, nimbler, and more agile. As new startups and competition in the market boast speed and agility, consumer products companies feel the pressure to compete. This mindset, while understandable, is not conducive to long-term consumer relationships or sustainable growth.
That’s not to say that speed or agility aren’t valuable goals – in fact, they’re critical for a modern consumer products company. The drivers to achieve them, however, are the areas where CP leaders can focus to better structure their organizations for sustainable success. That is, don’t build a fast organization because consumers value speed, instead build an organization that can understand and act on what consumers value. This subtle shift in mindset and strategy reﬂects a broader and longer lasting organizational trait offering true returns – consumer-centrism.
Consumer-centrism has been a term in the CP world across a variety of functions for years. Only now, backed by an empowered consumer voice and an analytical understanding of consumer preferences, can a CP company embed consumer-centrism within their organizational structure. In order to be effective, consumer-centrism must run deep through all areas of your business as the key tenet for how the organization runs. No department or functional area is exempt. With a deﬁnitively consumer-centric approach, your organization will realize the traits to institutionally:
- Serve the modern consumer successfully,
- Create a foundation for future innovation and growth, and
- React more effectively to external market forces.
To access the full report, download below.
Read last year’s Consumer Products Industry Trends Report here.