The Future of the Consumer Industry

Change is a staple of humanity. And nowhere is the velocity of change more evident than in the future of the consumer industry. The industry is currently facing a once-in-a-century economic, social, and technological transition.

To add complexity, this is happening against a backdrop of significant challenges, such as accelerated climate change, growing economic inequality, declining trust, increasing polarization, and worsening global financial conditions. Not only do companies need to navigate this once-in-a-century transition, but they should do it with an eye toward addressing critical issues for society and the planet more broadly. Download the report.

The coming years of change

To harness the opportunities brought on by major forces of change in the consumer industry and boldly lead their organizations into the future, executives should understand the implications of these changes along three dimensions of business: markets, models, and mechanics.

Markets

What is sold, who it’s sold to, which goods and services are valued, and how the industry creates value.

• From mass to micro: The market has shifted form supply-driven to demand-driven
• Digital and hybrid tsunami: The growth of digital goods and services outsize and displace spending on traditional physical categories
• Responsibility as a requisite: Ecological damage continues to accelerate, and the impact on the economy and the individuals becomes more visible. In the near future, consumer industry trust, privacy, equity, and advocacy will also become essential to the changing value proposition.

Models

How businesses organize and configure, how materials and capabilities are sources, and what new models create value.

• Industries converge: Continued acceleration and collision of infotech and biotech create a massive market opportunity
• Seismic supply shift: Geopolitical, economic, and market forces are converging to require a significant reshaping of supply chains
• Radical industry reconfiguration: The growth of capability-as-a-service in the market is driving significant reconfiguration of the industry

Mechanics

How businesses execute work, employ labor, build ecosystems, and make strategic and operational decisions.

• The age of algorithms and automation: Data and automation are driving highly efficient businesses that can sense and respond to granular shifts in consumer demand
• Workforce extremes: The scarcity of technology-driven skills and redundancy of workers replaced by automation are creating a difficult transition for the workforce
• New center of financial gravity: Traditional sources of growth and margin continue to collapse under the weight of increasing options and commoditization

The agency to harness change and build a better tomorrow

The future isn’t preordained. Instead, we construct our future one choice at a time. We have the influence, agency, and power to choose where we are going, and to shape the future of the consumer industry - and the world - for the better. What future do we want, and more importantly, what future do we have the courage to engineer? To navigate this ever-changing landscape, current - and future - consumer industry leaders need to recognize, monitor, and assess the six forces for effective scenario planning. The future will require companies to understand the implications of their decisions - and create a new approach to markets, models, and mechanics - as they chart their paths to buying into better.

Step into the future with our engaging "The Future of Consumer Industry" series. Our consumer sector experts have curated a wealth of knowledge, ready to unveil the next big things in Automotive, Consumer Products, Food, Transportation & Hospitality, and Retail. Click here to access the episodes and gain a fresh perspective on tomorrow's consumer landscape.