16.07.2024
Study
Deloitte has identified 6 factors that will transform the consumer industry in the next decade
According to a new study by Deloitte, the consumer industry is “facing a once-in-a-century economic, social and technological transition.”
The report, “Buying for Better: The Future of the Consumer Industry,” is the result of conversations with 800 consumer industry experts and data from Deloitte’s Global State of the Consumer Tracker. To help companies anticipate how the consumer industry will evolve over the next decade, Deloitte has identified six drivers of change:
- The evolvingconsumer: The consumer base is becoming increasingly diverse and complex, causing dramatic changes in the marketplace.
- An evolvingsociety and culture: equality, trust and transparency are becoming more important, and delayed marriage, home ownership and parenthood will affect consumer activity.
- Exponential xTech: technological progress is accelerating and is set to outpace the progress of the last decade.
- Radical industry disruption: the progress and challenges that are already making waves in the industry will gain speed and strength.
- Extreme climate change: Climate change and its economic impact will drive the industry’s transformation.
- Changing economics, politics and governance: The complex, unpredictable nature of economic and political developments will require companies to be flexible.
To succeed in the next decade, consumer goods companies will need to understand the impact of these six factors on the three dimensions of the business – markets, models, and mechanisms:
Over the next 10 years, increased consumer choice and diversity of demand will drive markets from supply-driven to demand-driven, and companies will shift from mass to micro-products in terms of production, distribution, and marketing. In addition, costs will increase towards digital and hybrid offerings, and corporate responsibility will become a distinguishing feature in the market.
The accelerating convergence of the consumer industry with other industry segments, advances in food production methods, and significant changes in the supply chain will require companies to rethink their models to keep up and thrive.
Artificial intelligence and automation will increasingly displace human-driven decision-making and operations, changing the way we work. The move toward automation may eliminate some jobs while increasing the demand for skills in tech-related fields.