The Rethinking Gap

The products we use form a large part of who we are. What phone do you use? Do you swear by a specific brand of toothpaste? Is it protein shakes or an organic acai bowl for breakfast? These items shape our daily lives, and the companies who define those products are among the most recognized and successful in the world.

However, consumer demands are only growing more complex. Today’s consumers expect products to be sustainable, ethical and personal: these qualities are non-negotiables for successful products, and reflective of both consumers personal values, and the values of a changing world.

Technology too is an ever-present factor; from the tech that powers products to the behind-the-scenes innovations that transform how companies design, manufacture and deliver those products. Given the pace and unpredictability of our current world, embracing this requires more than business-as-usual. Leading consumer products companies must also be great rethinkers, adapting to change with agility and delivering new products at the speed the market demands.

Yet when it comes to action, most companies aren’t where they should be. In our report, 79% of companies said that consumers are changing faster than they can keep up.

In our report, we examine the responses of 500 senior decision-makers across the consumer goods sector as they reveal the challenges they face and the solutions they are pursuing to stay ahead of the curve. It’s telling that 72% of respondents said that increasing the speed of innovation is either a critical or high priority for their company in the next 12 months – but it’s not all about new products.

After all, 76% of respondents either agree or strongly agree that consumers expect organizations to enhance existing products or services rather than frequently introducing new ones.

Finding the right balance between investment in new goods and services and improving the quality and performance of existing products is key to closing that gap. And technologies that aid innovation but also correct human misalignment in design, production and management are a vital part of maintaining that equilibrium.

In our report, developed with research and analysis firm Forrester, 500+ key decision-makers at a range of consumer goods companies were asked to assess the factors impacting their business, the challenges they are struggling with, and the solutions they are pursuing. These include respondents from industries that range from cosmetics, household products, fashion and homewares to luxury goods, fitness, toys, and pet care, representing Management to C-Suite levels, from the US, UK, Germany, France and Japan.