The consumer goods and retail sector is very diverse, linking producers and end consumers, and plays a pivotal role in the socio-economic growth of many emerging countries.
With increasing consumerism, rising disposable incomes and improving standards of living, the retail market is witnessing rapid growth, fast adapting to new technologies aiming at enhanced shopping experiences for faster shopping and smart payment solutions.
The Consumer Goods Industry
The global consumer goods industry is highly competitive. Low initial investment for entry into the market, rising consumerism, are key factors for increasing participation of new companies in the consumer goods and services market. Product quality, price difference, distribution channels, and word of mouth marketing drive retail competition between companies in the consumer goods and services industry. Also, companies in the consumer goods and services industry need to take into account cultural differences in developing local marketing strategies.
Consumer goods is including food and non-food categories, and are further classified in fast moving consumer goods (FMCG) with a useful life shorter than a year and being bought frequently with recurring expenditure, and include food and beverages, cosmetics and personal care, household and cleaning products, apparel and footwear, baby care products, cars toys, tobacco and pet food and pet care.
Slow moving consumer goods (SMCG) with a useful life longer than a year and a lower sales frequency, including household appliances, furniture and home improvement products.
When it comes to consumer packaged goods (CPG), safety regulations along with packaging specifications and labelling regulations have to be fulfilled in order to meet the country-specific requirements, and product formulas may have to be adapted to suit different consumer tastes.
Along with the consumer shift towards organic products, the Consumer Goods Industry is committing to environmental protection by reducing packaging, conserving water, reducing carbon emissions and stressing recycling.
The competitive landscape of the consumer packaged goods industry is shaped by global companies such as Procter & Gamble (P&G), Unilever, L’Oréal and Nestlé.
The retail trade industry is very dynamic and exposed to technological change, evolving consumer trends, new retail formats, globalization and increasing competition, forcing retail operators to be innovative to attract consumers and encourage long-term loyalty.
30% of Retailers are engaged in Digital Transformation, leveraging platform technologies that are cloud based and AI enabled in an effort to streamline the customer journey and improve the customer experience.
There are many market segments that are fuelling the growth of this industry. There has been a rise of convenience shopping, online trading, and the growth of franchising in the retail trade industry. The industry is characterized by a high degree of casual, part time and seasonal employment. With the global e-commerce industry being boosted by wider internet penetration, over the years, leading industry players are entering into mergers and acquisitions to shape the ongoing trend of cross-category consolidation. Key players operating in the global retail market include , Saks Fifth Avenue, Bloomingdale’s, Galeries Lafayette, Arnotts, John Lewis, GALERIA Kaufhof, Arcandor, Debenhams, House of Fraser, Macy's, El Corte Inglés, Dillard's, Roebuck & Company, The Bay, Nordstrom and Maxeda, Stockmann, Marks & Spencer, Beales, Sears.
Retail & Consumer research
Disposable income, consumer confidence, and interest rates drive retail demand. The profitability depends on efficient supply chain management and effective merchandising and marketing.
Large supermarkets and hypermarkets such as Wal-Mart, Home Depot, Kroger, Costco, and Target, Carrefour, Metro, Tesco, Schwarz Group), Aldi Einkauf, have advantages in purchasing, distribution, and marketing, while small local operators compete effectively by selling select merchandise and providing superior customer service.
Shopping Centers: Faced with the exploding popularity of buying online, when it comes to Shopping malls, those that are performing the best are providing much more than just something to buy, including movie theaters, cafes, and restaurants, in seeking new solutions to generate traffic.
Consumer research on shopping attitudes covers a range of statistics and survey results covering differences between various ethnic groups, and data presenting age-specific contrasts between Millennials and Generation X, across several retail categories such as groceries, fashion and accessories, apparel, shoes, cosmetics and personal care, household products and jewelry.