Bangkok, 29 November 2023. At an exclusive seminar organized by EY Corporate Services Limited (EY Thailand), speakers at the event entitled “Getting ahead of the changing consumer and disruption” highlighted the need for consumer products and retail (CPR) players to redefine their strategy to better serve consumers. CPR companies need to look at the business through non-traditional lens and embrace new-age models to stay ahead of the pack in the market.
The event saw the attendance of about 40 participants from various CPR organizations engaging in an insightful discussion led by the following EY spokespersons: Olivier Gergele, EY Asean Consumer Products & Retail Leader; Fabrice Imparato, EY-Parthenon Partner, Consumer Products & Retail; Patrick Bertalanffy, EY-Parthenon Partner, Consumer Products & Retail; Saifon Inkaew, Partner, Assurance Leader and Consumer Products & Retail Leader at EY Thailand; and Dan Feldman, EY-Parthenon Director, Digital & Tech Innovation.
The EY spokespersons highlighted that businesses today are in the midst of a paradigm shift, which is driven by global geopolitical and technological disruptions, and leads to evolving consumer behavior. With this, a new generation of digital consumers have surfaced, prompting leading CPR players to rethink how best to serve this target group.
According to the latest edition of EY Future Consumer Index, two-thirds of Thai consumer respondents (66%) rely on technology to manage their daily lives. This growing reliance on technology is shaping purchase decisions and consumption behavior. In fact, over the next three years, 63% of Thai respondents plan to shop online more and only visit stores that provide great experiences.
Olivier Gergele, EY Asean Consumer Products & Retail Leader, said:
"Rapidly shifting consumer attitudes and technological progress will continue to disrupt the CPR industry at an accelerated pace. It is imperative that boards and C-suite executives get ahead of those changes by looking at the business from non-traditional lens, and addressing the broader consumer journey to capture opportunities through the orchestration of digital ecosystems.”
GenAI looks to transform CPR operations
One of the disruptive technologies currently reshaping the traditional practices and the way business is done in the CPR sector is generative artificial intelligence (GenAI). GenAI is a step beyond traditional artificial intelligence (AI), and uses advanced algorithms and deep learning techniques to analyze existing data to create new outputs. This emerging technology is being embedded in the operations of CPR businesses to generate efficiency at a rapid pace, and can help to automate and augment consumer journey, increase back-office efficiency, and revolutionize sales and marketing.
Gergele says: “GenAI has the potential to truly accelerate disruption of the consumer industry. It specifically represents a unique opportunity for leading players to strengthen their omni-channel play, significantly stepping-up consumer experience and engagement.”
Apart from AI, the EY spokespersons also highlight that businesses should leverage data to unlock consumer insights that could be converted to commercial opportunities for the organization. However, this does not mean that companies must have advanced or sophisticated data analytics investments or tools. Instead, companies should seek to build data literacy at-scale in their organization, so leaders and employees can better appreciate the data, and work more effectively with internal stakeholders and external data specialists to turn the information into insights that will give the business a competitive advantage.
Altered consumer lifestyle and behavior in Thailand
The EY spokespersons also shared that they have also observed altered behavior and expectations among Thailand’s consumers given the rapid changes in the landscape due to global geopolitics and digital disruption. For example, the consumers in Thailand are becoming more digitally savvy with increased internet and smartphone usage. As a result, there is increased use of online shopping and food delivery services, as well as heightened demand for personalized experience.
While consumer confidence remains strong in Thailand, the EY spokespersons highlight that it is imperative for CPR companies to continue to engage with their consumers, adapt to their evolving preferences and anticipate disruptions to remain competitive in the market. Hence, CPR players need to continue investing in omnichannel capabilities to provide an experience for consumers.
Saifon Inkaew, Partner, Assurance Leader and Consumer Products & Retail Leader, EY Thailand says:
“In response to changes in lifestyle and consumer behavior today, particularly the popular use of internet and smartphone for purchases, many CPR companies in Thailand have redesigned their business strategies by expanding their consumer outreach channels. They are doing so through developing their own application platforms, collaborating with other business partners, as well as adopting AI to increase service efficiency.
“Technology will continue to reshape consumer behavior in the future, and businesses must create value propositions that will allow them to remain relevant and attractive to consumers. CPR companies need to stay ahead of the next wave of technological disruption. They can do so by identifying the purpose and consumer journey that they would like the company to address, and subsequently orchestrate the digital ecosystem to allow them to best serve consumers along their entire journey.”
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