As recession in the worldwide economy subsides, employment increases and population growth continues, consumer products players see profitable growth more so in emerging markets due to unabated urbanization and rise in income level of the middle class. This presents many opportunities to sustain profitable growth. But as markets shift from developed to developing world, new factors would affect profitability with increased complexity of infrastructure access in emerging markets.
Key trends shaping the Consumer Products Industry
Shift in consumer preferences: In the process of coping with recession, consumers of developed world have become frugal which will remain for coming years. They seek more value than before. In addition to this, the majority of population has become more health conscious, a sign of preferences of aging population. On the other hand, emerging markets are growing at a relentless rate dominated by young population and diverse lifestyle.
Digital Empowerment: Consumers are more aware than ever. This empowerment is fuelled by collaboration in the digital space and will continue to grow. Brands are reshaping their overall portfolio to reach closer to the consumers and help them in entire buying process.
Dominance of emerging markets: Rapidly growing emerging markets have attracted companies all over the world. Competition is becoming fierce with new challenges of reaching out to the customers in heterogeneous markets. The complex nature of rural and urban markets with different infrastructural capabilities requires local solutions to tap these markets.
Challenges facing the players involved in the Consumer Products Industry
Globalization: Companies need to put global standard and processes to deliver operating efficiencies, while delivering localized offerings in emerging markets. Striking the right balance and linking two strategies through processes is a big challenge for players looking for growth in new markets.
Reaching out to customers: Players are facing complex infrastructural challenges to reach urban and rural customers in emerging markets. Strong strategies and improved sales effectiveness is needed with careful segmentation to offer relevant products to urban and rural consumers alike.
Corporate responsibility and Sustainability: Increasingly customers are not looking at what products and services are being offered but how the brand conducts business. With digital spread of awareness, players are facing pressures in incorporating sustainability measures in their organization to deliver value to customers. Careful consideration towards environment without destroying resources for profitability will give the brands a differentiated edge in the eyes of consumers in the long term.
How can BMGI help?
BMGI has helped many players in streamlining their supply-chain processes and leading front line sales in improving sales effectiveness to ensure fast access to new markets, in associating with partners to bridge capability gaps, in cost-saving across processes and in building consumer focused segmented strategies to leverage growth in emerging markets.
BMGI has helped in increasing the bottom line of many partners in the value chain and continues to give the brands a differentiated edge to retain uniqueness in commodity driven marketplace that has sustainability measures built in its core.
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