While more than 65% of CEOs agree their organisation fosters a culture of innovation and disruption, 40% are not adapting successfully, a new study has found.
The Global Consumer Executive Top of Mind survey, No Normal is the New Normal: Make disruption work for your business was conducted by KPMG International and The Consumer Goods Forum, which was launched to coincide with the Consumer Goods Forum Global Summit, taking place in Singapore.
The results of the sixth annual survey reveal a consumer industry at the point of radical change and that CEOs need to make changes on a similar scale to stay competitive.
Beyond Disruption
“Today’s consumer and retail market is beyond disruption – we are disrupted – and CEOs need to listen to the market, look outward and focus on changing their business,” said Willy Kruh, KPMG Global Chair, Consumer & Retail.
“It’s an increasingly difficult tightrope to walk between dealing with both internal and external continuous disruption, but both are key to creating customer centric organisations. Those companies that cannot authentically connect to customers will get left behind.”
The survey results suggest that by 2020, the industry landscape could look very different, with CEOs agreeing that ‘historical and current business models will not survive continuous disruption’, and increased sales through owned distribution channels set to increase.
Social Purpose
“One of the business model transformations we’re seeing is putting social purpose at the forefront of strategy,” commented Peter Freedman, Managing Director, The Consumer Goods Forum. “Consumers, especially the millennials responsible for $2.75 trillion of consumer spending, want to know what a company stands for.
“Financial returns are no longer enough and consumers are choosing to put their money where there are environmental, social and community benefits.”
Visit www.kpmg.com/topofmind to download the full report.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
