The consumer goods & retail sector ranks among the highest revenue generators in the world. The consumer goods & retail industry encompasses a broad spectrum of sectors such as personal care, home care, baby care, e-commerce, and various others. Consumer goods are meant for daily and private consumption. The growth of the consumer goods & retail industry over the past decade has been more than satisfactory, as the major companies operating in this industry have launched innovative products to cater to the continuously evolving consumer needs and preferences. These companies have expanded rapidly into the developing nations that include China, India, Brazil, Argentina, Japan, and Chile, among others. Countries in the Asia Pacific region are expected to overtake the Western countries to become the main consumer markets in the coming years. The rapid adoption of internet services is playing a pivotal role in the evolution of the consumer goods industry.
Moreover, digital technologies such as blockchain, digital reality, artificial intelligence, and cloud services are leading the new era of productivity for consumer goods companies. These technologies are helping in boosting the efficiency of internal processes, brand growth, innovation, profitability, and consumer experience. Blockchain has several uses in the consumer goods & retail industry for both business and consumer services. The common uses of blockchain in B2B include connected supply chain, automated recordkeeping, product safety, product authenticity and origin, legitimacy of digital advertising, and product development and innovations, among others. Advantages of blockchain for consumers include access to product information, smart loyalty programs, fast and secure payments, access to aftercare services, and consumer data protection.
Recent years have witnessed changes in the consumer behaviour. The nature of the interaction of retailers and manufacturers with consumers has changed dramatically and is expected to display a similar trend in the coming years. Ownerships of smartphones, internet access, and the usage of social media are becoming pervasive globally. These technologies help people access all the information when and where they want. Further, there is rising demand for readily available information about products with real time updates and also with the ability to scan the barcodes or take the photos of a product to obtain the overall information such as pricing of brands and the stores where it is available. In addition to this, consumers also seek post sale services, such as real time updates about products, product recall notifications, and round the clock services.
Further, there are shifts in buying behaviour in developing economies. There is an inclination among consumers towards online purchasing to avail the convenience and discounts provided by online retailers. Manufacturers are also focusing on digital marketing strategies, such as web page optimization and search engine optimization, in order to grab greater consumer attention in the coming years. Further, manufacturers are building their own online platforms besides their offline stores and are offering brand discounts to target tech-savvy customers.
Notable players in the consumer goods & services industry include Nike, Adidas, Puma, Procter & Gamble Co., Unilever Plc, Beiersdorf A.G., Johnson & Johnson Inc., and Reckitt Benckiser Group Plc, among others.