Paris – A report published today by The Consumer Goods Forum (CGF), the global parity based network for the consumer goods industry, together with Capgemini calls for the consumer goods and retail industry to implement critical initiatives to safeguard the future and drive change across the industry. "Future Value Chain 2022: Industry Initiatives Address Challenges of the Digital World and the Fight for Resources" is the latest installment to be issued in the series and outlines a call to action to address the two megatrends identified: the challenge of today's Digital World and the ongoing Fight for Resources.
The Future Value Chain programme has been established over the past seven years with a focus on extensive industry research and analysis. More than 200 executives from some of the leading consumer goods and retail organisations worked together as part of the programme to focus on how, through a set of collaborative initiatives, the industry can continue to bring benefits to consumers. This effort was triggered by the significant changes taking place in society, consumer behaviour, the environment and technology.
“We identified the two key megatrends of ‘Digital World’ and ‘Fight for Resources’ as likely to have the greatest impact on the consumer goods and retail industry in the coming 5 to 20 years. Digitisation is changing consumers’ lives and shopping behaviour. At the same time, global demand for resources like food, water and energy is rising rapidly with the potential for demand to outstrip supply in the next decade,” said Thomas Storck, Member of the Management Board, Merchandising & Multi Channel Retailing Officer, Galeria Kaufhof (a subsidiary of Metro Group), and Co-Chair of The Consumer Goods Forum’s Emerging Trends Steering Committee. “The industry must work together to develop concrete milestones to respond to these megatrends and build an action plan to move these from theory to reality.”
"This is a historic moment. The thorough process across desk research, online surveys and crowdsourcing as well as a workshop has helped achieve a defined roadmap for us as an industry to follow and commit to deliver on the recommendations. This is an exciting time to be a consumer - they are in control. The next 10 years will mark a radical change in how products are sourced and purchased," said Peter Florenz, Corporate Vice President & Global Head of Governmental Relations and Public Affairs, Henkel AG & Co KGaA and Co-Chair of The Consumer Goods Forum’s Emerging Trends Steering Committee.
The collaborative exercise with the consumer goods and retail executives led to the selection of three initiatives that address the Digital World and Fight for Resources megatrends and highlight the need for swift action:
- Consumer Engagement Protocol: This initiative is designed to address the changes being witnessed in consumer behavior. The potential power of user-generated and social media technology platforms to disrupt established institutions and the associated brand equity is undeniable. However, there are opportunities to connect directly with consumers as shoppers look for improved transparency in digital channels. At the same time, there is an inherent need to mitigate risks from privacy invasion. Increasingly, companies recognise the requirement to be proactive vs. being regulated in this area, but currently there is no voluntary global commitment concerning this in the consumer goods and retail industry. The project is focused on establishing guidelines for digital engagement with consumers.
- Next-Generation Product Identification: Today, in a world of rapidly expanding online commerce solutions, barcodes are unable to provide companies and consumers with the rich digital product information they seek. Consumer barcodes do not uniquely identify product or package variations that carry the same product identifier, meaning minor product variations cannot be accurately disclosed. This initiative focuses on connecting the dots to improve supply chain transparency, efficiency and traceability. The goal is to provide the industry and the consumer with accurate product information by using new technology capabilities for product identification to replace the current barcode.
- Sustainable Packaging Coalition: This potential initiative is designed to establish a coalition of companies to work together on non-competitive topics to improve the sustainability of packaging across the different value chain stages. The focus of potential activities will be around the three R’s of packaging and packaging components: Redefine, Reduce and Reuse.
"The industry is at a critical tipping point and must ensure its future by implementing these initiatives to drive innovation. Success is hard to quantify but we must focus on collaboration and non-competitive improvements that will protect consumers and the vital components that will create one of the most innovative and forward-thinking sectors," said Sabine Ritter, Executive Vice President, Strategy, Industry Initiatives, Strategic Alliances at The Consumer Goods Forum. "Today we are also announcing that The Consumer Goods Forum’s Board of Directors has approved the action plans to move the proposed initiatives forward."
"The Future Value Chain programme has underpinned our industry's ethos in ensuring the consumer is at the heart of our thinking, every step of the way, no matter what region the purchase is being made in or where they fit into the wider ecosystem," said Kees Jacobs, Principal Consultant in the Consumer Products and Retail Global Sector at Capgemini. "The series of reports has been produced by the industry, for the industry."
To access the full report, please go to: www.capgemini.com/FutureValueChain
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