Digital Transformation in Consumer Products
AlixPartners' 2019 study for achieving profitable growth
AlixPartners' 2019 study for achieving profitable growth
ACHIEVING PROFITABLE GROWTH IN CONSUMER PRODUCTS
Digital technologies are disrupting the marketplace for consumer products (CP) companies. Industry leaders are actively addressing core drivers of success - including the relationships between manufacturers and retailers, digital spending, and company culture. Our 2019 study - based on an annual executive survey of the industry - outlines strategies to leverage the rapid rate of change.
Two key factors impact the success of a digital transformation: Corporate culture and the amount of digital spending that is below ROI expectations.
Digital disruption is causing companies to invest billions in digital transformation across their full operating model—including the digital path to purchase—working to make digital part of their DNA. However, results from our survey show that much of that investment is wasted. Digital transformation must be targeted, measured, and tailored to be profitable.
At the same time, digital and physical commerce are converging, and those further along the digital journey see this largely as already having happened.
AlixPartners surveyed 1,110 executives across China, France, Germany, India, the UK, and the US, who are or have been decision makers for digital transformation in CP companies, to better understand how their businesses can successfully drive profitable growth in today’s challenging environment.
Our experts have identified two key categories that behave as barriers to transformation: