Global retail and consumer goods firms are leaving over €290 billion ($345 billion) worth of business on the table due to a lack of agility, a new study of 270 c-suite executives has found.
The study, Consumer Centric: From Idle to Agile, was carried out by global management consulting firm A.T. Kearney, and interviewed leading CEOs/CFO/COOs from companies that make more than US$2 billion in revenue.
The study found that the main barrier to agility cited by respondents was culture, with 37% of the CEOs/CFO/COOs declaring it as the largest hindrance to adapting to the new consumer.
Despite this, over 50% of the industry leaders said that by 2026 cultural fit would be the main priority in the recruitment of top talent.
Adapt To Cosumers
Respondents acknowledged that their companies need to become more agile and adapt to the consumer world, one that is changing from one defined by affluence to one shaped by influence. Despite this, companies are struggling to adapt.
For example, some 79% of those surveyed said their companies rely on discount, loyalty programs and gift cards to motivate consumers to share their personal data, despite the research suggesting that these are stale methods of engagement, and that Gen Z and Millennials require a more creative approach.
“Our report showed that the retail and consumer industry needs to adapt to the preferences of Gen Z and Millennials consumers, who will dominate consumer spend in coming decades,” said Greg Portell, Lead Partner, Consumer Industries and Retail Practice, A.T. Kearney.
“The relationship with consumers is becoming more relationship based than transaction based, and Gen Z and Millennials require personal tailored marketing as opposed to the mass traditional model.”
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
