2014 global consumer executive top of mind survey

1© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Transforming for growth: Consumer business in the digital age

KPMG Global Consumer Executive Top of Mind Survey

kpmg.com/CMsurvey2014


Renewed optimism and the “age of disruption” are driving executive priorities.

Since last year’s survey, the clear focus of consumer goods

executives has shifted from survival towards technology and

operations—particularly around four issues…

© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.


Digital.

As consumer demand for digital experiences and ecommerce grows, retailers and manufacturers are looking at how they can meet these needs and operate in this new era of disruptive technology.

Issue #1



Data analytics is the top ranked area of importance for companies’ strategies this year

54%of respondents say their

digital strategy for engaging consumers through mobile

and digital platforms is a top concern

#1

Source: KPMG 2014 Consumer Executive Top of Mind Survey


As a result, business models are being transformed by technology.The ability to integrate platforms, information systems and data to effectively address the expectations and needs of tomorrow’s consumers is a critical component to competitive advantage and success.


Issue #1


Now consider…

■ Does your company have the strategy and capability to make the most of your data?

■ How are you using data to drive growth and innovation?

■ Is your business model customer-centric?


Issue #1


Data.

Consumer companies have more information than ever about their customers, even before they enter the store.

But the misuse of that data—or being vulnerable to piracy or hacking—can have enormous consequences, harming the reputation of manufacturers and retailers and eroding customer trust.


Issue #2


47% 29% of the respondents say data security is very or

critically important

of respondents say data security will be one of their biggest challenges over the next 12 months



This could mean executives are overconfident in their ability to protect data.

The fact that less than half of companies did not rank data security as a significant strategic issue suggests an overconfidence of executives in their companies’ ability to protect their data.


Issue #2


Now consider…

■ Do you have the right systems in place to adequately protect your data?

■ Are you at risk of eroding your customers’ trust?


Issue #2


Supply chain.

Extensive supply chains present ongoing challenges related to sourcing, tracking and efficiency.

Notwithstanding the supply chain logistics challenges that omni-channel presents, consumer companies have some of the most complex upstream supply chains of any type of business.


Issue #3


42%placed supply chain management at the top

of their list for increased investment over the next 12 months

38% of executives say supply chain management

is their top challenge

45%of executives say speed and agility is their top priority for improving the supply chain



As a result, increasingly complex supply chains require a deeper integration of data analytics to achieve greater efficiency and agility.

Greater collaboration among suppliers and retailers can help to increase visibility beyond Tier 1 and 2 suppliers.

Downstream supply chains need to be more transparent and agile to meet the real-time and cross-channel demands of omni-channel business models.


Issue #3


Now consider…

■ Are you collaborating with the right partners in your supply chain?

■ Do you have enough visibility and control beyond your Tier 1 and Tier 2 suppliers?

■ Is your supply chain agile enough to respond quickly to change?


Issue #3


Sustainability and CSR.Companies are faced with increased regulation, corporate and social responsibility (CSR) pressures, and accountability for the health and wellness of their employees and customers.

This presents companies with the challenge of being compliant, ethical and socially conscious—while being competitive and profitable—which doesn’t always go hand in hand.


Issue #4


main drivers behind sustainability

The

3Source: KPMG 2014 Consumer Executive Top of Mind Survey

Reputation and brand41%

Consumer demand 34%

Competition 28%

Percentage of respondents who identified each of these factors as one of their top three drivers


of food retailers and manufacturers say health and wellness and securing food safety are their top goals this year

56%of all respondents say

health and wellness and/or CSR and sustainability

priorities are very important to their business

1/2



As a result, the industry needs to collaborate to address CSR issues. Proactive efforts can drive positive change in the areas of data protection and privacy, health and wellness, product safety, sustainability and end-to-end value chains.

This will ultimately benefit not only consumers, employees and communities, but the companies and industry as well.


Issue #4


Now consider…

■ To what extent should the industry be involved in setting regulation and standards?

■ How is your company engaged in the creation and adoption of better industry practices?


Issue #4


Who was surveyedA total of 469 executives from companies headquartered in 32 countries completed the survey in April 2014 representing manufacturers (35 percent), retailers (40 percent) or both (24 percent) in the food, drink, consumer goods, luxury goods, agribusiness and food services sectors.

Over half of the respondents are C-suite or Board members, and one-third are from the finance function. Ninety percent have annual revenues over US$500 million, and 15 percent have revenues exceeding US$5 billion.



Contacts

Willy Kruh

Global Chair, Consumer Markets

KPMG International

[email protected]

@WillyKruh_KPMG

For more information download the report at kpmg.com/CMsurvey2014

Peter Freedman

Managing Director

The Consumer Goods Forum

[email protected]

@CGF_The_Forum


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2014 global consumer executive top of mind survey

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