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• mobile technology adoption
• Increased demand for brand engagement
• Real-time consumer advocacy
• Strong competition from private labels
• Striving for retail excellence
• Collaboration with customers
• Insourcing core and outsourcing non-core activities
• Predictive analytics and data driven insights for optimization
A quick look at these key trends (threats) and resulting implications for CPG organizations is as below:
Real-time consumer advocacy
Social advocacy on the trusted personal networks, Facebook and Twitter, have become the preferred point of engagement for almost every purchase decision, from toothpaste to exclusive cruise vacations. It is common to spot consumers at ‘Best Buy’, Target and Walmart reading product reviews in real time on mobile devices to make last minute buypass decisions.
Mobile technology adoption
Consumers worldwideare increasingly adopting mobile commerce Ichiro Suzuki Mariners Jersey , payments and wallets. The key reasons supporting this trend are that, mobile devices present an omnipresent connectivity, almost real-time purchase-point decision making and buying experience. Industry veterans predict retail commerce to grow by 8.5% by 2016.
Increase demand for brand engagement
With the ever-growing reach of social media, the industry is now transitioning to a multi-point customer engagement strategy that begins with opening the box and loops all the way into a repurchase decision. The new engagement model is continuous in nature, to maintain customer loyalty and to avoid defecting to alternate brands.
Strong competition from private labels
Retailers continue to put a dent on the CPG margins and profitability by continuing to introduce their private label brands next to CPG brands. CPG firms are benefiting from engaging in multi-point data analytics and insights to justify category assortment (and price points) across their retail partners, in each geographic region. Visibility to shelf (POS), data driven channelitem rationalization and category margin focus are warranted to ward-off the threat from private labels.
Strong push towards retail excellence
Leading CPG firms are collaborating extensively with their retail partners on all aspects of retail planning (promotions Hisashi Iwakuma Mariners Jersey , inventory, planogram designs, automatic invoicing, automatic dispatching, etc.) to enable fast and effectiv.