Think like a start-up How to grow in a disruptive market
2017 Global Consumer Executive Top of Mind Survey kpmg.com/cmsurvey
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“Revolution is just around the corner” Willy Kruh explains why businesses must respond to geographic, demographic and technological changes to survive
ur fifth annual Global Consumer Executive Top of Mind Survey reveals that 35 percent of respondents have experienced growth of 6 percent or more a year. This is great news for them. But for manufacturers and retailers across the globe to achieve comparable – or better – results, the key is understanding that growth is as much a mindset as a market condition. Companies that manage change by becoming customer centric throughout their operations can accelerate growth. I see three revolutions coming. First, a geographic revolution. Heading towards 2030, the bulk of the global consumer base will be a billion new customers from China. The second is demographic. As digital natives, today’s consumers are driving online sales. The ‘Do It For Me’ generation wants something that gets the job done efficiently and effectively – even if it makes a larger impact on their income. So enhancing customer experience is crucial. The third revolution is technological. In the age of the smartphone, ensuring customers can buy what they Willy Kruh Global Chair want, when they want is vital. Consumer & Retail, Businesses need to use data and KPMG International analytics wisely to understand their [email protected]
customers. The pace of social, economic, technological and environmental change is only going to accelerate, and adapting to it – being agile – is key. The bigger you are, the tougher it is to be agile, but there is a real opportunity for those who dare to lead the pace of innovation. Companies that evolve, innovate and truly understand their Millennial employees and customers will likely succeed, be they old or new, large or small.
“Consumers want authenticity” Peter Freedman says engaging consumers and building brand loyalty is all in the narrative
tart-ups have successfully disrupted the consumer goods industry because they have been able to understand consumer trends. Yet their success has spurred established players who, it’s fair to say, are all now obsessed with increasing the pace of change. Today’s consumers want instant gratification, as well as a narrative or story behind the products they |3| buy that resonates with them. Consumers are looking for authenticity – products that have been created by a couple of individuals whose names they know, and are produced in a certain place. In some ways, smaller start-ups have an easier ride when it comes to creating authenticity. One of the challenges for established brands is that there are some negative associations when it comes to big business, but even they can build trust by being transparent about their products. In a world where people have less time to engage with a multitude of brands, social media plays a big part in getting that Peter Freedman message of authenticity across – word of mouth being arguably the strongest advocate Managing Director, The Consumer Goods Forum of a product or service. [email protected]
There are still ways to build brand loyalty theconsumergoodsforum.com in a market where heritage is no longer as important as relevance, but of course you need to be able to innovate at least as fast as your competitor. Whatever narrative you choose, it needs to tap into what’s most important to your consumers. Identifying those trends and picking the ones that will provide a sustainable business opportunity is the key to success.
© 2017 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services an