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Frenetic market activity and new pressures and possibilities are dramatically changing the consumer goods landscape—and the terrain is shifting fast. Three trends have proven to be the most transformative and influential as companies move toward digital.
Globalization. The modern storefront is global. As political and trade barriers collapse around the world, new workers, consumers and shoppers are able to participate in the global economy. Accenture anticipates up to one billion new emerging market consumers eager to buy products by 2015. At the same time, transport and communications costs are plummeting, providing ample opportunities for businesses to compete in a globalized world.
Emerging markets middle-class. A newly affluent emerging market middle-class consumer is opening up a vast new market. By capturing the hearts and wallets of these new consumers by offering desirable snacks and drinks, cosmetics, toiletries and household goods, consumer packaged goods (CPG) companies have grown revenues by almost 7 percent in the last two years, despite depressed global economic growth. However, to effectively reach these new consumers, CPG companies would need to establish up to 15 million new retail outlets.
Digital adoption. The rise of digital technology is empowering consumers, shifting power from corporate to the individual. Today’s consumer demands anytime/anywhere interactions and continuous integration across channels. They have access to a wider range of products and services, and they expect good value. Across developed and emerging markets, consumers are going digital and social at the same time, and they may not be willing to purchase goods any other way. In fact, online sales are growing rapidly—by 18 percent CAGR.
Digital technology can bring products and services to consumers in communities where it’s impossible to get to a physical store. And, consumers simply expect interactions to be digitally enabled. Going digital is the only economically viable way to compete and win in this environment.
March 10, 2014
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