Insight

Consumer products industry faces sluggish and fragmenting consumer demand

September 2017
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Global growth continues to struggle—and to underdeliver on expectations.Competing in the new world means consumer products (CP) companies should view the shifting world through the eyes of consumer demand rather than relying on a traditionally supply-centric perspective.

At a glance

  • The sluggish macroeconomic environment has hampered and will continue hampering many CP companies.
  • Globalization—along with the digital revolution and the rise of automation—has caused lower- and middle-class incomes to stagnate in developed countries.
  • Making matters worse, demand has fragmented along geographical, socioeconomic, generational, and product-benefit lines.
  • Successful CP companies will completely rethink their business models and instill cultures of reward for innovation and risk-taking.

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