A new report identified the top areas consumer products manufacturers should focus on this year.
The 2016 Consumer Products Outlook report, published by Clarkston Consulting, explored the themes that are most relevant to manufactures, consumers and retailers in 2016. The report identified three top areas to watch out for this year: Consistency, Authenticity and Value, and Innovation.
Top three themes
Consumers will be prioritizing products that are available whenever and wherever they want them, and will prefer clear brand messaging that are consistent across multiple platforms and channels.
The report noted that the rise in online commerce is drastically changing how consumers interact with brands and presents a diverse range of promotional opportunities. The report found that online commerce sales were up 15.2 percent since the third quarter of 2015, and that total retail sales grew by 1.6 percent. Clarkston advised that to stay relevant, companies must craft personalized offline and online promotional experiences.
Consumers are also prioritizing enjoying products from brands that are transparent and that put forward authentic value propositions. The report recommended that companies create value propositions that show why they are in business instead of simply what they sell, and that they prioritize forming connections with consumers.
Finally, brands will consumer products companies will have to be innovative in 2016. Areas that have great potential for new approaches include product innovation, acquisitions, add-on services and repurposing of successful brands. The report also recommended that companies take advantage of crowdsourcing to promote collaboration and creativity within a community setting.
Agility in the ‘Age of the Consumer’
The report asserted that companies are currently in the “Age of the Consumer,” and would be well served by remaining agile and innovative.
“The consumer products industry has always been marked by change, but it is even more pronounced now in the ‘age of the consumer’,” said Steve Rosenstock of Clarkston. “With consumers more connected, educated and engaged, consumer products companies need to ensure that they listen, quickly adapt to evolving needs, and engage across all appropriate channels.”
There are a variety of ways that companies can adopt more agile business practices. In an article for MediaPost, Till Dudler and Oliver Grange recommended that the operations and commercial aspects of business are managed in-sync, that the levels of decision-making and approval are reduced and that they look beyond geographic proximity to consider global relevance.