Consumer packaged goods and retail in the age of instinct
A global pandemic, changing consumer expectations, and sustainability concerns are redefining the consumer goods and retail landscape. We explore how CPG and retail companies must connect, predict, and adapt, using AI as their neural wiring to succeed in this changing world, as they shift from running supply chains to creating supply brains.
Trends changing CPG and retail
Driven by changing customer expectations, three trends are shaping CPG and retail organizations - and they must adapt to thrive.
1. Optimized reality
CPG and retail companies are using data and digital technologies to tailor experiences, services, products, and promotions to the individual and shift from maximizing supply chains to personalizing demand chains.
2. Ethical impact
In a world where consumers demand an ethics-driven approach from the brands they interact with, leading CPG manufacturers and retailers are encouraging healthier choices and supporting shared values across supply chains, shifting from growth at any cost to inclusive prosperity.
3. Whole-system planning
Shifting consumer expectations, environmental emergencies, and global health threats are forcing CPG and retail companies to move from linear production to regenerative, circular economies.
The instinctive enterprise
To navigate these macrotrends, CPG and retail companies must become instinctive enterprises – next-generation businesses that connect, predict, and adapt at speed, placing data at their core and embedding AI throughout.
Connect
Build connected ecosystems to break down siloes and embrace external partnerships.
Predict
Generate predictive insights by harnessing volumes of data and adopting advanced technologies.
Adapt
Nurture adaptive workforces of humans and machines aligned around a common purpose: the customer.