In CGT’s 2014 Review & Outlook Report, Accenture’s Keith Barringer, Consumer Goods and Services senior managing director, discusses how digital consumers are more flexible in their choices to shop anywhere, at anytime through multichannels. This will require CPG companies to develop a seamless, multichannel approach that enables them to be more relevant and agile in responding to changing consumer demand.
Keith also discusses how companies will need to evolve from a six week to a six minute supply/logistics cycle, and how they will need to focus on four digital sales channels: B2C; B2B; B2B2C; and increasingly B2Things, or connected devices. But to succeed, companies need to eliminate internal silos and form one shared, enterprise-wide strategy within their ecosystem that includes suppliers, distributors, retailers and consumers.
Another area Keith touches is the blurring of lines between sales and marketing due to digital retailing. CPG companies are more likely to succeed if they engage with consumers directly through digital channels and build out their direct-to-consumer processes. Partnering with technology companies can help accelerate their innovation agenda by gathering and basing decisions on consumer insights, engaging consumers in product development and driving valuable consumer data and social connections that will shape marketing efforts in new ways.
Ultimately, Keith says CPG companies need to partner with retailers, leverage social media and accept digital technology as the only viable way to compete and win in a changing environment.
Read Keith’s column and full report here (note – you will need to register for free access to CGT).