3 Early Findings From the Consumer Industry Pulse Check Study
A new pulse check sheds light on the impact COVID-19 has had on the consumer products industry, which has had to endure unimagined marketplace disruptions and shifts in consumer behaviors during a time of crisis.
The pulse check provides data-based insights into marketplace and consumer trends that are critical for consumer goods companies (CGs) to use as they create game plans that enable them to respond, recover and thrive beyond the pandemic.
The SAP-Deloitte Consumer Industry Pulse Check, has released early findings that include three major insights and what their implications are for making changes to CG organizations and business processes.
Top 3 Pulse Check Insights
According to early results from the Consumer Industry Pulse Check study, which is being conducted in partnership with Consumer Goods Technology, the top three findings are:
- Employee health and wellness is the top priority for CGs, even beating out post-COVID-19 business recovery and financial liquidity.
- 90% of CGs are experiencing meaningful disruption in their product portfolio, which includes challenges that range from inventory distortion (under and over capacity) to supply chain chaos caused by restaurant closures and a sharp increase in e-commerce.
- 80% of CGs are rapidly shifting to alternate sales channels, including an acceleration of their e-commerce strategy by years in just a matter of months.
In the COVID-19 environment, it is more important than ever for CG companies to make smart decisions at a whirl-wind pace even as they know past experiences and established business models will not be as effective as they once were.
Heading the list of today’s priorities is doubling down on health and wellness, which are essential for the safety of employees and slowing transmission of the novel Coronavirus. A health and wellness focus on CG employees is also essential for maintaining business continuity in the short term and a strong foundation for post-pandemic success.
Meaningful disruptions in product portfolios, with global conditions changing from month to month, have stressed manufacturing and supply chains to the breaking point. By exposing these limitations, CGs now have a clearer picture about ways to change long-established processes that are too rigid to adapt to changing conditions.
Finally, as brick-and-mortar stores struggle, CGs are turning to new channels, partners, media, and online marketplaces. It’s a brave new world for CG companies, one that promises rewards but comes with risks that have to be balanced by adjustments in product portfolios and go-to-market strategies.
Creating a New Game Plan
As these early findings show, CG companies are currently challenged to navigate a landscape upended by COVID-19. To succeed in a time of unimagined disruptions, CGs will be required to make both short-term and long-term plans that enable them to respond, recover and thrive in the next normal.
The Consumer Industry Pulse Check will provide in-depth analysis of industry trends that are analyzed segment by segment. Armed with these insights, CGs will be able to create effective plans for navigating historic challenges and rebooting their organizations in an unprecedented time.
We would love your insight on how COVID-19 is affecting your business. Please take a few minutes to take the Consumer Industry Pulse Check study.
Deadline, August 31!