Consumer & Retail
Consumers changed their behavior and preferences, so companies are changing their go-to-market strategies and capabilities in response. Industry players are recalibrating how they segment consumers, prioritize channels, establish product portfolios, position their brands, and deploy service models. This work continues in the new year.
We’re likely to see the words “digital acceleration” in almost everything we read this year. Of course, that doesn’t make them any less true. Out of every capability or strategy assessed by our executive panel, digital showed the largest maturity gap. Three in four executives said it’s important to meeting their objectives, but only one in four believed that their digital capabilities are advanced relative to industry peers. Of those making investments, 80% are allocating resources to improving their e-commerce and shopping platforms, including a full 60% investing in their digital DTC channels.
For decades, globalization, low-cost supply, and minimal inventory were the key tenets of efficient supply chain management. The industry is not abandoning those goals, but the emphasis in 2021 is on building resilience. Resilience is how companies keep their supply chains from breaking and restore them quickly when they do. It is also how they can gain the nimbleness and scalability to power new go-to-market approaches and innovative business models.
*Based on Deloitte’s 2021 Consumer Products Industry Outlook
FCL Industry Coverage
- Food and Beverage
- Personal Care
2021 started strong after a rebound from the impact of COVID-19 during 2020. 7,200 transactions closed in the third quarter of 2021 compared to 6,929, a 4% increase. Venture Capital buyers were the most active class of investors representing 56.7% of the total deals closed. IPO activity has also picked up as the economy recovered from the pandemic.