What to focus in 2011: key trends
Posted by Turgut Ziyal on Friday, January 21, 2011
Under: consumer research
In January issue of strategy+business magazine issued by booz&co there is an interesting article titled "Five Industries Hit the Reset Button". I am copying here the section about consumer goods industry by summarizing it, if you like to read whole article click here, or to read full section about consumer goods industry click here:
Although the consumer sector fared better than many others in 2010, much of this improvement was due to productivity gains. In 2011, leading consumer products companies will need to focus more on generating real revenue growth by pursuing opportunities enabled by four key consumer trends:
Although the consumer sector fared better than many others in 2010, much of this improvement was due to productivity gains. In 2011, leading consumer products companies will need to focus more on generating real revenue growth by pursuing opportunities enabled by four key consumer trends:
- Frugality with a twist. During the Great Recession, many consumers drastically reduced their spending and cut back on services once deemed essential. For some consumers, these habits are enduring. That said, even frugal consumers seem willing to pay more for so-called high-touch experiences. Demand is broad for products and services with emotional appeal.They are also seeking greater personalization in products and services. Those companies that connect with customers, through simultaneous value and personalization plays, will find ample opportunities to grow.
- An aging and health-conscious population. As the population ages, consumers are increasingly demanding foods, beverages, and other goods that promote health and well-being. New categories are being created in weight management, performance nutrition, and disease support. Sales of healthier foods and beverages are growing quickly, gaining share over more traditional options.
- Fragmented media; digital consumers. Leading companies are building marketing functions that can reach consumers no matter where they are located on the path to purchase — at home, on the go, or in the store. This has led to increased spending on nontraditional programs that connect consumers to brands and to other fans of brands.
- Big emerging markets. Consumer products companies seeking new growth cannot ignore emerging markets. According to the World Bank, GDP growth in China in 2011 is expected to slow to 8.7 percent, compared to 2.9 percent in the United States. In India, GDP growth in 2011 is estimated at 8.7 percent, and income levels are rising rapidly. Furthermore, these markets are not homogeneous; consumers are in different stages of development both within and across countries.
Not all companies will be able to leverage these four growth opportunities effectively. The key to success will be coherence. What capabilities will be most important for generating consumer value? The answer depends on how a company chooses to meet the challenges of the four main trends. The leading companies in this sector will turn these trends to their advantage.
In : consumer research
Tags: trends 2011 "consumer goods"
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In this blog I try to compile the news related with food industry. This includes food companies, retailers, ingredients, regulations, mergers&acqusitions and others. In each post I try to designate the source of the news and add a link to the original document.
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