How can consumer products companies unlock value by reconfiguring their operating models? We explore nine crucial questions and industry perspectives.
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A revolution is afoot in the retail and consumer products industry.
Customers and competitors are evolving rapidly, while brands are continuously fading and emerging in a global market where the west is no longer the dominant force.
Agility, innovation, creativity and a clear strategic direction - these are the key words for retailers and manufacturers wishing to survive in the highly competitive world of consumer goods.
We have the teams and the knowledge to get our retail and consumer products clients in shape for this brand new order. We know the rules of play and have close links with the most successful companies. Together with 285 C-suite executives from leading consumer goods companies, we have developed a new consumer products paradigm for the future.
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SMEs, family businesses and international groups appreciate our global methodology and the consistently high quality services that our experienced professionals offer - whatever the phase of growth or consolidation and whatever the situation.
- Adapt to the brand new order
Old or New World, classic retail or online, traditional or social media!?
The world of retail and consumer products has been disrupted and is constantly being reinvented. Although the risks are considerable, there is also huge potential to create value.
We interviewed 285 C-suite executives from leading consumer goods companies to identify what matters in this brand new order and what companies need to do differently in order to win. The results are dramatic - two thirds of those questioned admit that their business models need to be turned on their head. Three quarters predict that their current margins will be impossible to maintain without a significant change in strategic direction.
We analyzed all of the feedback to develop a new consumer products paradigm for the future. Our teams are skilled in helping clients combine traditional and innovative approaches, conventional and virtual marketplaces, regional and global strategies - to get the most from their business.
- Growth markets: a billion new consumers
Rapid growth markets are key to the future growth of consumer products companies. Of the one billion people projected to enter the middle class by 2020, two-thirds will come from fast growing economies such as the BRIC grouping (Brazil, Russia, India and China) and other fast-expanding territories including Bangladesh, Indonesia, Mexico, Pakistan, Turkey, Vietnam and Africa.
With 70% of global GDP expected to be generated by fast growth markets in the next ten years, consumer products companies need to seize the opportunities and manage the complexities.
- Profit or lose
- Conserving value in a maturing Russian market
- Rapid-growth markets forecast: July 2013
- Growing beyond: innovating for the next three billion
- Growing pains: Companies in rapid-growth markets face talent challenges as they expand
- Transacting in Emerging Markets
- Growing in Africa: opportunities for consumer product businesses
- 2012 attractiveness survey: Brazil
Visit our Emerging Markets Center for more resources
- Transactions: time to take off
M&A activity in the consumer products sector has declined recently in light of economic uncertainty in Europe, the US and other global markets.
Transactions are at their lowest level for three years. A surge in activity seems to be just around the corner, however, as the 20 leading consumer products companies have cash reserves of around USD 40 billion between them. Many of them are scouting out takeover targets and performing due diligence reviews.
A trend is emerging towards smaller transactions over the traditional M&A deals. Popular choices are joint ventures, alliances or cooperative arrangements which are often better suited to boosting profits and generating the value that stakeholders expect.
- Tailored solutions
Weak growth in saturated markets, challenges in emerging economies, increasingly complex routes to market and more demanding consumers - just some of the many challenges facing the retail and consumer products industry in today’s marketplace.
There is no single recipe for success in the retail and consumer products industry. A more effective approach is detailed segmentation, which we do by breaking the sector into product groups. Supported by our 15,000 strong global consumer products network, our dedicated subsector teams specialize in food, beverage, tobacco, household and personal care and are ready with tailored solutions for every company.
Our “Talking” series was launched with individual product groups in mind and serves as a platform for exchange between our clients and our dedicated professionals.
“Talking Brewing”, “Talking Food”, “Talking Personal Care” and “Talking Tobacco” are published every three to four weeks and offer you important insights into strategic developments in the sectors of interest to your company.
- Appetite for growth – assessing the critical success factors in the rapidly changing food sector (683 KB, 36 pages)
- Capturing recall costs: measuring and recovering the losses (620 KB, 60 pages)
- Working with the tobacco companies in the new normal (1 MB, 28 pages)
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Capital Insights magazine – issue 10
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