Today's consumer packaged goods companies are facing a winner-take-all world in which about half the sales growth - more in certain categories and markets - is coming from digital channels. Companies have to earn their online market positions with new approaches and skills tailored to digital sales, says a report released by The Boston Consulting Group and the Grocery Manufacturers Association.
Analyst Insight: Digital business creates new opportunities for consumer packaged goods companies to transact directly to their end consumers. Digital business is information-enabled business that employs an abundance of new information in ways that better service customers. Bottom-line digital business offers the potential to transform the way that CPG companies interact with and serve their customers allowing them to create new operating models that tighten the bonds with their end consumer, which has the potential to transmogrify the CPG industry. - Dwight Klappich, Vice President, Supply Chain Research, Gartner
In the face of challenging economic headwinds, consumer goods manufacturers have focused on cutting costs and optimizing working capital. Those routes still offer opportunity, but recent analysis indicates that traditional assumptions regarding tradeoffs among costs, inventory and service don't always hold true, and leading companies are using new, customer-centric levers to unlock value. These actions could yield a potential value of nearly $50bn industrywide, according to research conducted by The Boston Consulting Group on behalf of the Grocery Manufacturers Association (GMA).
Retailers and consumer packaged goods companies are dealing with new rules of consumer engagement as they seize opportunities from advanced technology and the digitally connected consumer, according to the 2013 Financial Performance Report by the Grocery Manufacturers Association (GMA) and PwC US, titled Growth Strategies: Unlocking the Power of the Consumer.