World’s largest consumer companies share top-of-mind issues

ONE in five consumer business executive say that “the economy and consumer demand” is their single most important concern for 2013, and over 40 percent identify it as one of their top three. In fact, of the top five issues that are most frequently identified as a top priority, four are related to growth (including “the economy and consumer demand,” “growth and international expansion,” “R&D and innovation,” and “consumer marketing”).

 Growth issues, operations issues, responsibility issuesTHE operational issues (including “supply-chain management and procurement,” “retailer-supplier relations,” “operations technology” and “people/human resources [HR]”) are selected as a top priority 32 percent of the time, and issues primarily related to responsibility and/or regulation (including “corporate responsibility,” “governance and regulation,” “food and product safety,” and “consumer health and nutrition”) are identified as a top three priority 22 percent of the time.

Manufacturers vs retailers

ALTHOUGH both sectors rank “the economy and consumer demand” and “growth and international expansion” most often as a top priority, manufacturers are more focused on these issues than retailers.

Select key findings

Driving revenue, profit and growth are at the top of the consumer executive agenda.

Executives’ top ranking of issues related to revenue, profits and growth are fueled by varying economic circumstances. In Western Europe, for example, where confidence levels remain low. Companies are focused on sales and growth in order to sustain profits. In North America, on the other hand, modest improvement in the economy and consumer spending are creating more of a cautiously optimistic outlook as companies look to expand.

There is a continued focus on operations as a lever to fulfill growth and reduce costs.

Although companies are most focused on growth, continued pressure on margins due to rising costs and competition means they still need to continually find more efficient ways to manufacture and deliver products to their customers.

Responsibility and regulation issues are a particularly high priority for the food sector.

For companies operating in the food-and-beverage sector, the issues of food and product safety and [consumer health and nutrition are most likely to rank as a top priority. In Western Europe and Asia Pacific, this is especially true, where food and product safety is the most frequently cited number one concern among food and beverage respondents.

Larger companies, and companies in emerging markets, are most likely to identify corporate social responsibility (CSR) as a top concern.

Companies with bigger and increasingly complex supply chain face greater ongoing challenges regarding CSR, as well as greater stakeholder scrutiny. Fast-growing companies in emerging economies, on the other hand, are often dealing with comparatively less mature CSR programs that demand more attention and concern.

 More powerful consumers are an opportunity.

Companies recognize the power and influence of consumers and are altering their focus to work with the consumer and meet their needs, rather than on trying to influence them. An increase in informed consumers is expected to have the most positive impact on profitability and 39 percent say that more health-conscious and educated consumers provide the greatest opportunity for their organization. One-third expect to collaborate with consumers as a means of innovation.

Businesses are grappling with technology.

Partnerships with technology providers are expected to be a key means for innovation and one-third say data will be the most important means of technology for increasing sales and profits. However, 41 percent of companies also say that the technology poses a major challenge for them. Managing customer data and data security is ranked as the largest technology problem and roughly 80 percent think mobile technology poses some kind of challenge as well.

 Focus on product and brand to drive sales.

Product development and marketing are the highest priority in terms of R&D and investment, and sustainability/environment initiatives are the lowest. Brand building and pricing are top marketing priorities, followed by the newer trend of consumer data analytics. However, online/mobile sales, social media and mobile app development rank further down.

Source:http://www.businessmirror.com.ph/index.php/en/business/banking-finance/21781-world-s-largest-consumer-companies-share-top-of-mind-issues