Relatively speaking, the consumer packaged goods industry is believed to have weathered the storm and fared better in the recent economic times than most other industries. The notion that the global economy is on the verge of recovery has, however, not yet completely translated into improved consumer spending or consumer confidence – certainly not in the developed world. In the U.S., consumers remain cautious. Shifts to private label brands continued at a strong pace over 2009 while consumers shopped less frequently and spent less per trip. On the other hand, consumers in the emerging countries – Brazil, India and China – have been more optimistic and this has translated into more frequent shopping trips and higher sales, in both volume and value terms.

For players in the CPG space, the economic downturn has brought with it various challenges such as intense competition, slow growth in developed markets, rising costs, growth in private label brands, price sensitivity, “consumer down-grades” to cheaper products, changing consumer preferences and shift in power to the retailer.

While these challenges need to be met with, in order to remain competitive in today's changing world, consumer packaged goods companies also need to ensure that they remain quick in adapting to evolving trends such as shifting consumer demographics, changes in household disposable income, changing purchase behavior, the increasing influence of digital media on brand information and value decisions, and the importance of corporate social responsibility. It is this tension – the continued, competition-driven emphasis on driving topline growth while simultaneously managing costs and protecting margins – that will be critical to industry success going forward.

At the Smart Cube, we help clients manage this tension through the in-depth research and analytic services we provide across their businesses. We provide insights to help enhance their top line through market entry assessments, new business and product strategies, consumer-level analytics as well as competitive landscaping and brand and media analytics. We also work closely with CPG clients to realize the margin management goals through dedicated supply chain research support, from spend analytics to LCC sourcing to strategic sourcing research, supplier risk mitigation and beyond. To learn more about our offerings in CPG space, please contact us.