Retailers and consumer packaged goods (CPG) companies could unlock US$2.95 trillion in value for the industry and consumers over the next decade by accelerating digital transformation, according to a new report by Accenture Strategy.
Accenture Strategy’s Painting the Digital Future of Retail and Consumer Goods Companies report found that investments in new, digitally driven business models will give consumers greater choice around how they purchase goods and services, and enable companies to deliver profitable, differentiated experiences.
“The next decade will be a golden age for consumers, with technological innovation creating a variety of shopping experiences that will give consumers the simplicity, convenience or excitement they crave,” said Chris Donnelly, senior managing director and global retail lead at Accenture Strategy. “Out of the US$2.95 trillion in value the report identified, consumers have the most to gain – just over US$2 trillion – through cost and time savings. The success of retailers and consumer goods companies to unlock value will be dependent on their ability to gain a deep understanding of consumers, embrace disruptive technologies and adopt innovative business models.”
According to the study, 37% of US consumers would allow companies to collect their personal data via intelligent devices if it meant they would have a better shopping experience or get a financial reward. Another 37% would subscribe to a service that constantly looks for the best pricing deals on their behalf, and actively recommends which company to switch to, and when.
More than 26% of US consumers would use sensor-based digital services that pre-emptively address their needs without human intervention. Another 24% would subscribe to brands that analyse their shopping history to select products for them, and orders them automatically.
“The retail and consumer goods industries will change more in the next 10 years than they have over the past 40,” said Oliver Wright, managing director, global consumer goods lead, Accenture Strategy. “As expectations around cost, choice, convenience and experience continue to increase, consumers will challenge the industry to evolve and innovate which will drive huge growth in digital commerce.”
Business leaders and policymakers must focus on accelerating reskilling their workforce to use new and emerging technologies. They should also create partnerships with educational institutions, and influencing public policy to meet the needs of the future workforce.
“To thrive in the next decade, organisations must aggressively pursue innovation and be willing to disrupt themselves,” said Donnelly. “The winners will be those organisations that prioritise adopting a partnership mindset to offer customers new value, innovatively meet consumer demand for new services, and implement advanced data sciences to derive deeper customer insight to enable better decision making.”
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