Trends in the consumer goods industry
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Production and logistics in the consumer goods industry
The consumer goods industry is currently undergoing a digital transformation. This transformation and other trends in the consumer goods industry have effects that are already visible across all stages of the value chain. These range from manufacturing to marketing to last-mile delivery. Thus, it is only a matter of a few years before household appliances such as refrigerators automatically order consumer goods produced by robots and 3D printers. Subsequently, these orders will be delivered to end customers by autonomous vehicles such as drones and driverless cars. These technological developments will fundamentally change the consumer goods industry. Unless companies adapt to the changing dynamics of the industry, they risk extinction. Globalization and competition from Asia are also intensifying cost pressures. Bross & Partner supports its clients in adopting new technological trends and continuously developing their business models.
Current trends in the consumer goods industry
There is a big shift towards e-commerce, especially among Millennials who prefer to discover and buy goods online. According to the World Economic Forum’s Consumer Goods Industry Report, the next decade will be the golden decade for consumers. This is because personalized products and services will meet their needs and tastes.
Customer is king
Advances in digital technologies and platforms such as social media, e-commerce and online reviews empower customers. As such, they represent one of the most important trends in the consumer goods industry. Thus, customers have the power to influence many decisions within established companies. This allows them to have a say in what, how and when a product is produced and delivered.
Cost pressure and competition
Ongoing cost pressure remains a challenge to competitiveness in the consumer goods industry. In order to reduce costs, consumer goods manufacturers regularly put the entire value chain under the microscope. Some trends in the consumer goods industry therefore focus on optimizing processes in logistics or production. Indirect areas such as purchasing are also being optimized. A constant challenge for companies is also to increase sales and win new market share. Promotional activities must be carried out efficiently without cannibalizing the company’s own products.