Consumer-Packaged-Goods Companies Must Enhance Their Digital Capabilities to Capture US$340 Billion Growth in Booming Asian Markets, Accenture Report Finds
Report identifies ways for CPG companies to seize the growth opportunities and engage with the changing digital consumer
SINGAPORE; Feb. 25, 2016 - Consumer packaged goods (CPG) companies must fully embrace digital commerce or risk losing out to newer industry players in the battle for an estimated US$340 billion worth of market growth in Asia Pacific, according to Accenture. In a new report, 'The future is now: understanding the new Asian consumer ' Accenture estimates that the consumer goods and services industry will grow by as much as US$700 billion globally by 2020, with nearly 50 percent, or US$340 billion, of this growth coming from Asia - specifically China, Indonesia, India, Singapore and Thailand. China alone is expected to account for approximately US$200 billion, or 60 percent, of the growth in Asia. 'If CPG companies don't take action now, they risk losing out on the new generation of consumers. These companies must couple traditional models with new ones where consumer engagement is digital and one2one, social influence is perceived to be the trustworthy source and shopping is one click away,' said Fabio Vacirca, senior managing director in Accenture's Products operating group in Asia Pacific. 'The entire sales and marketing ecosystem is changing dramatically on the back of the new generation of consumers and pervasive digital technologies. In Asian markets the change is faster and in many cases it means leap frogging the traditional models.' The report estimates that retail sales across Asia Pacific's booming consumer markets are on course to top US$10 trillion by 2018, with approximately one-quarter of that amount coming from digital commerce. Yet despite the heavy influence from e-tailers and online marketplaces, the digital commerce market in Asia Pacific remains under-penetrated for CPG companies, particularly in the grocery-product category. In addition, using knowledge of consumer preferences and their evolving demands, leading disruptors in the market, such as Alibaba, have been adapting by reinventing and tailoring offerings to redefine the value chain and make the consumer their focal point. The report identifies a number of steps that established CPG companies could take to seize growth opportunities and counter the threat of the new players:
- Partnering with e-commerce platforms to reach new consumers/markets
- Maximize value from cross-border e-commerce
- Investing in brand building, with integrated marketing initiatives spanning online/offline
- Adopting a 'mobile first' approach
- Integrating e-commerce initiatives with social platforms to engage consumers and build trust
- Investigating opportunities for product testing and product development through crowd-sourcing
- Leveraging insights from big data to enhance and fine-tune customer interactions across multiple touchpoints.
Accenture Internet of Things Centre of Excellence The research was launched at the Accenture Internet of Things (IoT) Centre of Excellence in Singapore. The Centre brings market expertise, industry leading practices, leading-edge technologies, and consumer research together to create an experience that empowers businesses to think differently about the future - from digital transformation and corporate strategy, to IT, sales, and marketing reinvention. 'The next generation of digital commerce is here, and consumer empowerment enabled by smarter technologies will change how we shop and make purchases,' said Vacirca. 'From the virtual reality room to its next-generation experience space, the Accenture IoT Centre of Excellence in Singapore helps businesses take advantage of the unprecedented opportunities that exist in the rapidly evolving digital marketplace.'
Methodology Accenture carried out a range of qualitative and quantitative research for this report. It included the creation of 'online consumer communities' across China, Indonesia and Singapore to better understand e-commerce preferences, pain-points, and motivations in relation consumer goods and services purchases. The communities were active from December 2015 to January 2016. In addition, Accenture hosted interviews with a sample of senior level executives with a strong exposure to the CGP industry and desk research was used to complement this.
About Accenture Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions - underpinned by the world's largest delivery network - Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With approximately 373,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com.
# # #
Contacts: Hui Luen Lien Accenture + 65 6410 8790
hui.luen.lien@accenture.com Caroline Douglas Accenture + 35 3 87 680 0074
caroline.douglas@accenture.com
Accenture plc issued this content on 25 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 26 February 2016 04:25:58 UTC
Original Document: https://newsroom.accenture.com/news/consumer-packaged-goods-companies-must-enhance-their-digital-capabilities-to-capture-us-340-billion-growth-in-booming-asian-markets-accenture-report-finds.htm