The challenges for Retail and Consumer Product (R&C) companies are many in today's business environment as a confluence of market forces have created an extremely challenging climate. R&C Sector companies are constrained in their ability to grow and maintain profit margins, as a result of a competitive operating environment, market fragmentation, population growth, and more discerning but less loyal consumers. In addition, there are the immediate concerns of growing competitive pressures, an increase in the number of alternative sales channels, a blurring of roles between suppliers and retailers, and — particularly for consumer product manufacturers — a shift in the balance of power to the retailers.
The recent wave of business scandals and ethical lapses have heightened public, press, and investor scrutiny of companies, creating demand for a corporate culture of integrity-driven performance and a new corporate transparency. Management and Boards now feel compelled to ensure that proper governance processes are in place to protect corporate reputation, brand image and shareholder value. According to PwC's 8th Annual Global CEO Survey ( December 2004), 50% of R&C industry CEOs believe there is a strong relationship among all elements of governance, risk and compliance (“GRC”) and that effective governance can be a value driver and a benefit, versus a cost, to their companies.
Effective corporate governance requires management and Board involvement and accountability, accuracy in the reporting of financial results, stronger internal control documentation and a greater need for stronger risk management practices across the enterprise, embracing the processes, compliance and structure required to direct and manage the affairs of a corporation. Its overall goal is to ensure the financial viability of the enterprise and enhance shareholder value.
For the R&C industry, globalisation, which entails multinational operations, various financial reporting systems, and complex supply chains with wholesalers, distributors and multiple types of retailers, not to mention multiple brand portfolios and various types of outlets, provides significant rationale for management and Boards to develop an effective GRC program.
Retail & Consumer challenges
- Corporate Governance
- Market Value Recognition
- Globalisation/Consolidation
- Corporate/Brand Reputation and Corporate Social Responsibility
- Supply Chain Optimisation
- Influence of New Technology
- CRM/Consumer Centricism
- Brand Valuation and Management
- Enterprise Risk Management
- Marketing Effectiveness
How can PricewaterhouseCoopers Turkey help you?
For R&C companies across the globe, PricewaterhouseCoopers offers a strong and reliable network of dedicated industry experts via global and local R&C teams. Our mission is to help our clients:
- to extract value from their local and multinational operations,
- to develop a competitive advantage across the value chain, and
- to ensure that all corporate stakeholder expectations are recognised and met.
In sum, building brand trust through our Assurance Services, brand growth and brand effectiveness through our Advisory Services is the purpose of our practice.
As a demonstration of PwC’s know how in R&C sector, "From Beijing to Budapest" thought leadership study with the intensive involvement of PwC Turkey team, has been officially launched at the Global Retail & Consumer Business School in Barcelona in October 2005. The main objectives of this study are to provide a broad picture of the economic, social and cultural specificities of 20 transitional economies in Asia, Central and Eastern Europe and to highlight the challenges and opportunities for retail and consumer goods companies wishing to invest or already investing there. Business opportunities, key consumer targets and winning formats in each country – for both foreign and local investors – have been identified. The opportunities are illustrated with success stories from successful multinational and local players in terms of winning brands and winning formats. The updated regional Retail & Consumer Barometer 2005/2006 provides for each country the PwC point of view and recommendations in terms of investment for each country.
In this respect, seven countries, Turkey, China, India, Vietnam, Russia, Romania and Bulgaria, offer the strongest investment opportunities for retail and consumer companies according to the "From Beijing to Budapest: Winning Brands, Winning Formats" report. The report shows that while achieving a presence in these transitional markets can be challenging; companies that develop new products and new formats tuned to the quickly evolving tastes of customers will be successful.
