Home Business NewsBusiness Radically changing consumer and retail industry offers CEOs a choice – transform now, or be left behind

Radically changing consumer and retail industry offers CEOs a choice – transform now, or be left behind

by LLB Reporter
14th Jun 18 7:54 am

New figures show

While more than 65 percent of CEOs agree their organization fosters a culture of innovation and disruption, 40 percent are not adapting successfully, according to the Global Consumer Executive Top of Mind survey, No Normal is the New Normal: Make disruption work for your business, conducted by KPMG International and The Consumer Goods Forum (CGF). The results of the sixth annual survey reveal a consumer industry at the point of radical change and that CEOs need to make changes on a similar scale to stay competitive. 

“Today’s consumer and retail market is beyond disruption – we are disrupted – and CEOs need to listen to the market, look outward and focus on changing their business,” said Willy Kruh, KPMG Global Chair, Consumer & Retail. “It’s an increasingly difficult tightrope to walk between dealing with both internal and external continuous disruption, but both are key to creating customer centric organizations. Those companies that cannot authentically connect to customers will get left behind.”

Survey results are being released today in conjunction with the annual CGF Global Summit taking place in Singapore from 12 – 15 June 2018.

The survey results suggest that in 2 short years, by 2020, the industry landscape could look very different:

·         New business models: CEOs agree the historical and current business models will not survive continuous disruption.

·         Fewer physical stores: North American respondents felt this change most keenly, with 37 percent agreeing that they will close stores in the next 2 years.

·         Increased sales through owned channels: In order to increase speed and efficiency, CEOs agree they will need to sell more product through their own distribution channels. This sentiment was shared equally by North American, European and Latin American respondents.

“One of the business model transformations we’re seeing is putting social purpose at the forefront of strategy,” says Peter Freedman, Managing Director, The Consumer Goods Forum. “Consumers, especially the millennials responsible for USD 2.75trn of consumer spending, want to know what a company stands for. Financial returns are no longer enough and consumers are choosing to put their money where there are environmental, social and community benefits.”

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