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Consumer products organizations are looking to maximize profits and market share in a highly competitive environment that includes challenges such as meeting the changing demands of customers, maneuvering through a consolidating market and executing strategies to grow profitably.
About Deloitte’s Consumer Products practice
Deloitte is a leading presence in the consumer products (CP) industry, providing audit, consulting, risk management, financial advisory, and tax services to more than 95 percent of the Fortune 5001 CP companies.
With more than 4,000 professionals, Deloitte’s CP practice serves companies across multiple categories including food and beverage, apparel and footwear, personal care, and household products.
1 Fortune, May 2017
Key issues and trends affecting CP companies: Expectations for the CP industry in 2018
Today’s business environment is in a constant state of rapid change. The ability of CP companies to quickly adapt, innovate, and differentiate themselves is often essential to success.
Globalization: CP companies are apt to look for ways to strategically capitalize on the growth in emerging markets as well as for opportunities to acquire or partner with companies in these markets, enabling access to their consumers, leverage their market solutions, and access sources of raw materials.
Innovation: Innovation is now often being approached through newer and bolder strategies. These can include developing company sponsored venture capital styled incubators, crowd sourcing, innovation through renovation, and continuing to focus on good-for-you products.
M&A: A traditional source of growth, M&A continues to be pursued. But now many CP companies are finding it difficult to achieve significant new growth. Given this scenario, many companies are looking to expand across geographies, turning to global giants, and shedding “non-core” assets to focus on high margin and growth businesses.
Digitization: Now a focal point of strategies in many CP companies as they align technology in creative ways to optimize customer engagement and influence the consumers’ path to purchase, while driving innovation and better managing internal operations.