What’s Next in Consumer Markets
Our Whats’ Next Briefing Series explores upcoming sectoral trends and its likely impact on leadership. In this briefing, we highlight two key trends that are impacting Consumer Markets.
While India has been a highly strategic market for most global consumer organizations over the last decade, the context today has become more competitive. Growth strategies that worked earlier will no longer be relevant. Fragmented demographics, maturing of multiple markets regional and local inside the country, internationally travelled consumer segments along with growing consumer awareness and access through digital platforms have emerged as critical drivers for the industry.
Consumer spending in India is expected to go beyond US$ 3.5 trillion by 2020. For companies to capitalize on this demand, high agility is needed with the ability to develop business models which work for different consumer segments and also take advantage of new emerging go-to-market models. The growth will be across the consumer pyramid with premiumisation as the key need for top of the market and value as the key driver for the bottom of the pyramid.
Across the pyramid a new focus on Indian identity of products will also emerge. Home grown brands will build on a nationalistic appeal to carve an identity that is distinct from global brands.
Many product categories are experiencing a rise in the speed in their consumption and hence widening the industry scope and redefining the CPG industry. Segments like furniture, luggage, electricals, mobile devices and smart devices have witnessed an increase in frequency of consumption, and hence need to develop FMCG-like business models. Even the traditional commoditized segments like plastics (e.g., Tupperware), paper, etc. are going through a fundamental shift in the way they brand and deliver to markets.
Today the consumer is catalysing a shift in core strategies and leadership of consumer businesses. The democratization of the world due to globalization and technology is leading to the rise of the digital consumer. Information and connectivity has empowered consumers like never before. Every consumer is a digital consumer and to keep them engaged, companies will have to put the digital consumer at the heart of everything they do.
Digital platforms will allow small and local manufacturers to reach national markets and therefore reduce the advantage enjoyed by FMCG and consumer giants.
In this briefing, we highlight two key trends that are impacting the sector and their leadership impact.
Read the full briefing here.