- Consumer Products
- Future Consumer Study
- Key Findings
- Conclusions and Recommendations
- Future Consumer Study
Consumer needs are evolving, and future interaction will be radically different…
The research has shown clearly that the underlying consumer hypotheses from the “2016: The Future Value Chain” report are valid.
This means that – in line with the opportunity areas identified in the “2016” study – companies need to anticipate these changes across a number of dimensions:
Shopper Dialogue
- Establish and maintain a true two-way dialogue with individual consumers.
- Improve your face to the shopper – both in physical stores and online.
- Take advantage of emerging technologies.
Information Sharing
- Be transparent in your information management.
- Manage consumer information (personal profiles) effectively.
Synchronized Production
Integrated Logistics/Home Delivery
- Extend your distribution chain to the consumer’s home.
- Consider new integrated approaches for streamlining neighborhood services.
Sustainability
Company Culture and Behavioral Changes
Shopper Dialogue
Establish and maintain a true two-way dialogue with individual consumers. This will be the most valuable means to really understand your consumers. Anonymous consumer surveys will not be sufficient. Consumers will expect to have a true dialogue with companies – as long as it is relevant and brings them value. They will expect customized communication – and in return they will provide valuable information about their true needs and preferences.
Improve your face to the shopper – both in physical stores and online. This will require more frequent format and merchandise assortment changes to keep up with the pace of consumer change. Consumers are not satisfied with their stores (both brick-and-mortar and online) and shopping experiences. Current shopper concerns relate to things like product issues (quality, availability), accessibility and navigation, packaging and information labeling (for example, in relation to health and wellness, which is the number one consumer driver) as well as price perception.
Take advantage of emerging technologies. Consumers will increasingly use all kinds of new, especially mobile, technologies during the buying process. These technologies will play a key role in marketing and communication and have the potential to significantly influence purchase decisions.
Information Sharing
Be transparent in your information management. Consumers appreciate companies that can accurately provide relevant information how and when they need it. Consumers increasingly research their purchases across various channels – and they expect this information to be readily available, adequate and consistent.
Manage consumer information (personal profiles) effectively. Consumers are willing to share information – as long as they can trust that this information is being treated in a respectful manner and is translated into relevant offerings and promotions, fully in accordance with consumers’ wishes and needs (for example, in cases when a consumer is not open to a personalized approach).
Synchronized Production
Personalize your offerings – and be able to deliver. Consumers are increasingly expecting and appreciating personalized products and services. In some cases, this requires different scenarios to effectively and efficiently synchronize the actual individual demand with the capabilities to produce, customize, assemble, fulfill and/or service these demands.
Integrated Logistics/Home Delivery
Extend your distribution chain to the consumer’s home. Consumers will increasingly order online, and they expect these orders to be delivered to their homes. This home-direct distribution model places some different requirements on the consumer products and retail supply chain, compared with the store-distribution model (for example, regarding delivery times), which companies need to anticipate.
Consider new integrated approaches for streamlining neighborhood services. A significant proportion of consumers are prepared to use neighborhood pick-up facilities for online orders. Consumers also indicated that they want additional services around the product (such as on-site guidance and installation). Based on a broader set of consumer needs, this could provide a basis for further integration of different services (for example, postal services, health care, social services, parcel services) into a new neighborhood services and distribution model.
Sustainability
Address sustainability in a serious manner – and communicate about it. Consumers are concerned about things like global warming and CO2 emissions – and they will take this into account when making buying decisions. A company’s ability to offer its products and services in a sustainable manner will be input for both public opinions and personal judgments. But be aware that consumers are not willing to pay much extra for products that meet their sustainability requirements.
Company Culture and Behavioral Changes
Be open to new ways of working – driven by consumers. Consumers appreciate the value of innovation and they are increasingly willing to take an active part in this process. Make sure that your solution and product development is driven by true consumer needs – and if possible involve consumers in your R&D process using new technologies.
Addressing these challenges will not be possible in a single step. This will be a long journey – and nobody really knows exactly where it will lead. But companies that start this journey well prepared, will find this out themselves – and consumers will help point them in the right direction.
