Companies in the consumer products industry are developing newer and bolder strategies to execute with the environment of a more stable US and worldwide economy. Among the latest trends are:
- Globalization continues. Companies that have the resources will try to capitalize on growth in emerging markets and seek opportunities to acquire or partner with companies to enable access to consumers, leverage marketing and access sources of raw material. In particular, emerging markets represent a growth opportunity. We believe this will remain true regardless of individual national efforts to protect markets or create trade barriers or the implementation of industrial policy by a specific country.
- M&A activity will allow expansion across geographies and reach out to markets that can drive both sales and profitability.
- Innovation is a source of growth traditionally. Companies will try new and bold strategies going forward. Many will be agile in their approach to developing and testing innovative ideas. The old, traditional, highly structured, more time-consuming testing methods will be used less and less.
- Digitization and technology enhancement, allow creative and efficient ways to optimize customer engagement and influence the consumers’ path to purchase.
- Achieving globalization through partnerships. One growth strategy is through partnerships between companies and local brands, with experience in a specific geography or product segment. Such partnerships potentially help companies adapt their products to the needs of a specific market.
Consumer products is a broad diverse industry, difficult to describe, that covers many products, technologies, markets and geographies. It is very important, in the USA alone it accounts for 70% of the economy. Developments here will have huge impact. Stay tuned.
