Huge economic shifts between, and within, countries are resulting in equally momentous changes in consumption patterns.
CEOs face three key challenges in this new environment. They have to chase a moving target, as consumers evolve in different ways in different markets. They have to address the needs of more diverse – and demanding – customer segments. And they have to fight off increasingly intense competition. It’s no wonder that more than half of CEOs are concerned about changes in consumer spending and behaviours, and that nearly half of all CEOs are worried about new market entrants.
To respond to these challenges, CEOs are keeping their eye on emerging markets, which make up six of the ten overseas markets in which they expect to generate most growth over the coming year.
More than 90% also want to change customer growth and retention strategies, while over 90% say the same for channels to market. But fewer have actually made changes in these areas, and many don’t think the customer-facing parts of their business are well-prepared to carry out such changes. But some CEOs are only too aware of the need for action. They’re looking to better serve distinct demographic segments, like older consumers. Some are also targeting the world’s poorest populations. And, in a shared economy, more companies are offering customers different ways to consume other than permanent ownership.
CEO & Chairman of Navios Group of Companies
CEO of GrainCorp
Founder and Group Chief Executive of The Abraaj Group
CEO of Svenska Cellulosa AB (SCA)
Michael I. Roth
Chairman and Chief Executive Officer of Interpublic Group
Dr. Paul E. Jacobs
Chairman and Chief Executive Officer of Qualcomm Incorporated
Managing Director of Apollo Hospitals