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Perspectives
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Perspectives
Perspectives is a TCS management journal that provides expert opinion & case studies to solve business challenges. Also find interviews of leading authorities on business & economics. Read more.
Related Insights
This TCS article explains 4 servitization opportunities for companies with closed-loop systems, & explains how to overcome significant obstacles that will stand in the way. Read more
Blog
05 Jul 2022
Highlights
- The consumer packaged goods (CPG) industry has faced unprecedented pressure to get products onto shelves while meeting fluctuation in consumer demands and historic market volatility. In 2021, Tata Consultancy Services surveyed global companies to uncover how CPG companies plan to use digital technology to better compete; further digitize the products, services, and businesses processes that define them; and secure the leadership needed to nurture culture and talent.
- The study included more than 1200 firms, including 90 CPG companies, with an estimated average revenue of $14 billion (ranging up to $100 billion or more) across 17 industry sectors. Nearly a third (31%) of these CPG firms are based in North America; 30% are based in the UK and Europe; 18% are located in Asia-Pacific; and 21% are in Latin America.
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CPG Leaders
The TCS 2021 Global Leadership Study also compared the two subsets of CPG enterprises. “Leaders,” which had both superior revenue and profit growth from 2015 to 2019 compared to other CPG companies, and “Followers,” which reported inferior financial performance during that time. This report looks at the CPG companies with the best financial performance and what they did right compared to those with less stellar financial performance.
Essential takeaways
- CPG companies strategize with a narrow industry frame compared to other industries: 69% are far more likely to define their strategic opportunities through their traditional industry lens rather than in the context of broader digital ecosystems.
- CPG firms expect their most formidable competition by 2025 to come from another industry yet still plan strategy within their industry’s traditional boundaries.
- CPG firms say the best use of customer data is to improve their existing products and services, although the more successful CPG companies plan to prioritize providing better customer service and improving their marketing and sales approaches over product or service development.
- Diversity, inclusion, and equal opportunity topped the list as the most important aspect of a CPG company’s culture between now and 2025, followed by innovation.
- Most CPG executives plan to improve their existing strategies over completely new approaches, offerings and models. However, the more successful CPG firms were more likely to prioritize a closer balance between innovation and optimization across more categories.
How Retailers
During strategy planning, Leader CPG firms view opportunities use a blend of traditional and cross-industry digital ecosystems
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