The past few years have been a tumultuous ride for the consumer packaged goods industry. The seismic changes in consumer buying behavior, the confluence of emerging technologies, and the demographic shifts have put an enormous strain on CPG brands and retailers. Lockdowns and social distancing have compelled consumers to move from brick-and-mortar stores to online sites, hinting at the transition required in the CPG consulting solutions. Although the CPG revenues have increased by 21% year-on-year in Q2-2020, Consumer Brands Association predicts that it will take some time for the market’s economic activity to recover.
Undeniably, there is great uncertainty about how the marketplace dynamics will play out in the next decade, so the consumer packaged goods industry must prepare for the change. Therefore, as a savvy retailer, you need to stay updated with the ever-evolving market trends, consumer preferences, and emerging technologies to stay relevant and competitive in the next decade. Capital market consulting can help you stay on top of these trends and enable you to adopt the latest tech solutions as soon as they hit the market.
Here are the key trends that you need to keep a vigilant eye on to steer your path ahead in the future.
#1: The rise of digital consumer
Today’s consumers rely more on referrals, which is why over 93% look at reviews for information before initiating a purchase. With customer experience becoming a key differentiator for brands worldwide, your digital marketing campaigns must prioritize and brainstorm around offering impeccable web and mobile solutions. Brands will need to leverage user-generated content to study consumer behavior via trending technologies like AI and data analytics to offer competitive experiences. You must invest in advanced marketing platforms to tap into new media outlets, which can be achieved by rigorous tracking and extensive digital marketing analytics.
#2: Major demographic shifts affect consumer buying patterns
The coming decades will be driven by segmental changes in the customer demographics. CPG consultants devise marketing strategies for different demographics- millennials, Gen X, Gen Z, baby boomers, and the aging population. Ensure that your marketing strategy consists of customized procedures, triggers, and solutions that attract consumers from all domains and geographies. Using AI-driven customer insights, you can then understand their varied interests, tweak strategies according to their buying behavior, and offer personalized solutions.
#3: A preference for customized products and experiences
Consumers today demand omnichannel experiences across all the consumer-facing platforms with a personal customization across every channel. Individualized personalization has become a critical priority for brands to be able to compete in the market and boost customer loyalty and trust. This demand will continue to grow in the coming decade, and you should adopt innovative ways to fulfill customer expectations.
#4: Thinking around price sensitivity
Given the current economic uproar, consumers have become rigid around price and value. They aggressively compare prices online and substitute their favorite brands for equivalent value-conscious alternatives. A McKinsey study states that 40% of consumers are more diligent about their purchases post the pandemic. Your consumer packaged goods business would need to consider price sensitivity intensively and justify the value of the goods to boost conversions.
CPG consulting solutions to look for stability and sustainability
With the right capital marketing consulting partners, you can derive ways to abandon legacy market strategies and embrace innovative solutions to boost customer engagement and stay in the winning lane.
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