Consumer Packaged Goods

Moving from products to experiences

Megatrends in Consumer Packaged Goods: Challenging opportunities ahead

Rarely have times been so promising and threatening for the CPG industry. In spite of a sluggish economy, societal changes, the rise of new middle classes in Asia and emerging demographics offer many opportunities for growth. At the same time, increased globalized competition and changing market structures propelled by digital are progressively but intensely challenging incumbents.

Download the CPG Look Out 2020+ Paper
X2

the CPG industry will double in size in the next decade

37%

share of the CPG market will be in grocery in 2025

20%

of grocery sales will be online by 2025

36%

of customers are purchasing personalized products today

To succeed in an increasingly globalized and digital world, CPG players should not only accelerate Direct-to-Consumer initiatives; they should rethink their value proposition, moving from pure product sales to the supply of experiences.

Terry Lobel,

Senior Vice President CPG & Retail, Atos

Four transformation challenges and opportunities for the future of CPG

Shift
from products to 360° experiences

To succeed in an increasingly fragmented market landscape, CPG companies must master the latest Big Data sciences to gain a deep, real-time understanding of consumers’ expectations and what they are willing to pay for. What’s at stake: a shift from product to 360° experience thinking to engage clients in new ways and dramatically improve customer stickiness and loyalty. …

More here

Leverage
Lean & Industry 4.0 to gain agility

To succeed, incumbents need to completely rethink their operating models with initiatives in Industry 4.0, Lean programs, consolidation, D2C and new last mile delivery modes. The benefit of such initiatives is essential: reduce costs by up to 30% and increase agility…

More here

Expand
business models to accelerate growth

The digital world changes the very nature of the CPG industry. To succeed, CPG players need to reassess where they want to play. In a fast-changing world where today’s partners may well become competitors tomorrow – and vice versa – thinking globally will be vital…

More here

Make
trust & compliance a strategic priority

With the rise of fraudsters, hacktivists and crime organization, digitization just adds to these concerns. With the cost of cybercrime set to exceed $ 1 trillion, security is much more than a challenge for CPG: it’s a life or death necessity. For brands, it’s also a way to earn customer confidence…

More here

Take a look at the key technologies that will shape the future of CPG:

TRANSFORMATIONAL • ADOPT

Hybrid Cloud is reviving Cloud initiatives by enabling seamless integration of private and public Cloud platforms. With this model, organizations can exploit the benefits of public Cloud: pay-per-use, ‘infinite’ bursting resources, agility and innovation. CPG players must adapt their IT processes and prepare for related security implications.

TRANSFORMATIONAL • TRIAL

Flexible Manufacturing leverages the latest digital and Internet of Things (IoT) innovations to build fully-integrated, collaborative manufacturing systems that can respond in real time to changing market conditions and demand. CPG players should apply it in SCM, PLM and MES, and also in associated digital services.

HIGH • TRIAL

Data Management Platforms enable CPG players to analyze customer behavior and manage interaction across all channels and touchpoints. Well beyond marketing applications, they should consider making it a cornerstone for their next-generation digital service platforms, ultimately enabling ‘segment of one’ or ‘B2Me’ go-to-market.

LOW • TRIAL

Robotic Process Automation brings virtual workforces for managing repetitive tasks, reducing the cost of administrative and regulatory processes by at least 50% while improving quality and speed. CPG players should standardize processes to facilitate automation.

TRANSFORMATIONAL • ASSESS

Artificial Intelligence promises to second human cognitive capabilities with virtual assistants, chatbots, knowledge engineering, smart machines and autonomous vehicles. It will impact customer experience, business models and operations along the entire value chain. CPG players must prepare for the business, human and legal impacts.

HIGH • ASSESS

Blockchain is a potential game-changer for conducting business with parties without prior trust relationships. In CPG, it could revolutionize supply chain management, product traceability, automated contracting and the microservice economy.

MEDIUM • ASSESS

Prescriptive Security uses real-time dark web monitoring, AI and automation to detect potential threats and stop them before they strike. Applications range from cyber-protection to fraud management and compliance. CPG players should explore integrating it into their IT/OT Security Operation Centers.

LOW • ASSESS

Augmented and Virtual Reality are blurring real and virtual worlds, allowing customers, partners and employees to engage with digital services within the context of their current environment. CPG players should explore potential use cases on manufacturing shop floor, in sales or service gamification and in virtual or physical stores.

HIGH • EXPLORE

Smart Machines have the potential to accelerate and simplify logistics in the supply and delivery chain, with freight transportation and platooning, warehouse and shipment management and also last mile delivery. Autonomous roving vending machines and delivery drones are already being trialed in the field and may be considered by CPG players for Direct-to-Consumer Initiatives.

LOW • EXPLORE

Additive Manufacturing or ‘3D Printing’ does not just facilitate rapid prototyping but also enables low volume and fully personalized production in multiple domains. It is even being experimented with food, allowing unprecedented control of flavor, color, texture and nutritional content. CPG players should evaluate potential applications in their industry.

1Hybrid Cloud 2Flexible Manufacturing 3Data Management Platforms 4Robotic Process Automation 5Artificial Intelligence 6Blockchain 7Prescriptive Security 8Augmented Reality 9Smart Machines 103D Printing
  • Mainstream
  • Early Adoption
  • Adolescent
  • Emerging

Start your own journey & Connect with us

As the Trusted Partner for your Digital Journey, Atos can help. Meet our experts and stay one step ahead by getting hands-on experience of new disruptive technologies.

ENGAGE in a co-innovation workshop at one of our Business Technology & Innovation Centers.

Get off to a quick start with a personalized workshop. Ask for a meeting

atos.net/btic

EXPLORE how the latest technologies can boost your own practice.

Leverage our experts and labs to build POCs tailored to your business

atos.net/consumer-packaged-goods

STAY TUNED with the emerging trends and best practices in digital innovation.

Keep yourself informed. Follow the latest insights from our experts in the field:

atos.net/blog