Executive summary

Consumer product companies face a confluence of rapidly evolving technologies, consumer demographic shifts, changing consumer preferences, and economic uncertainty.

These dynamics have the potential to not only undermine historical sources of profitable growth, but also undermine historical sources of competitive advantage and render traditional operating models obsolete. Because no one knows exactly how the marketplace dynamics will eventually play out over the next few years, consumer product companies should be prepared to operate amid uncertainty.

There will also be opportunities for consumer product companies to innovate products and services to better meet the needs and wants of consumers. The development of new channels will also create possibilities to engage with consumers directly and by doing so, develop deeper relationships.

To help prepare for change and uncertainty, we present five potential “undercurrents” that may impact the industry in 2020 and that companies should keep in mind as they try to chart a clear path to 2020 and beyond:

  • Undercurrent 1: Unfulfilled economic recovery for core consumer segments.
  • Undercurrent 2: Health, wellness and responsibility as the new basis of brand loyalty.
  • Undercurrent 3: Pervasive digitisation of the path to purchase.
  • Undercurrent 4: Proliferation of customisation and personalisation.
  • Undercurrent 5: Continued resource shortages and commodity price volatility.

To help executives plan and act amid these undercurrents, we have developed five ‘navigation aids’ to help them address these challenges. In this report we build upon the research originally conducted in the US market – see Navigating 2020, published by Deloitte University Press.

Consumer Product Trends - Navigating 2020

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