Disruptions to the global supply chain and rising inflation are squeezing profit margins at Consumer Packaged Goods companies just as they look to recover from the impact of the COVID-19 pandemic. The higher costs to procure materials and manufacture goods is combining with a talent shortage caused by the Great Resignation. And CPG companies are feeling the pressure.
In the midst of all this, the customer remains priority number one.
In 2022, CPG leaders will need to focus on creating a consistent and frictionless customer experience. Selling products on their own is no longer enough. CPG – like retail – will expand the way they deliver and bundle products with great customer experience. They should prepare to invest in improving the online presence and using data and predictive analytics as a catalyst to grow market share.
The coming year also will require simplified supply chains built for resilience and a push for subscription-based service models. Look for opportunities to use a context-driven shopping approach and build sustainability principles into packaging and manufacturing processes.
ISG helps CPG companies navigate a changing market. Contact us to find out how we can help.