Retail and consumer packaged goods (CPG) executives are overwhelmed by the pace of change, according to a new study released by Genpact and HFS Research.
“Retail and CPG companies struggle to balance the macroeconomic ‘slowdown’ with the ‘big hurry’ to innovate,” says Saurabh Gupta, president, research and advisory services at HFS Research. “Most companies are not investing across all the areas they need to meet. Beyond survival, they must take a balanced approach to their people, processes, sustainability initiatives and technology to thrive.”
“The pace will only pick up, especially with the explosion of generative AI,” says BK Kalra, global leader of retail and consumer goods at Genpact. “Our research underscores that companies need to transform their operations, invest in AI and data, and develop new business models in a digital-first world.”
From PR Newswire:
- The study reveals that more than 60% of retail and CPG executives feel challenged to keep pace with the changing nature of demand, among the myriad of pressures in the post-pandemic world. Inflation, cybersecurity and supply chain disruption are the Top 3 concerns.
- Yet, only 6% of retail and CPG companies executives say their companies are investing across the three Horizons and focused on all the right initiatives to lead in the future.
- Only 22% feel they have successfully modernized their order management operations.
- The pandemic shock on supply chains is something with which 70% of retail and CPG executives still grapple, and 75% say their companies are responding to by transitioning from traditional linear to autonomous supply networks.
- Over 70% of CPG executives state that their companies are investing in direct-to-consumer (DTC) models for growth.
- Only 60% of retail and CPG executives say their companies have appointed a chief sustainability officer, developed frameworks for front-line employees to be more aware of their impact on the planet/sustainability, and are engaged a third-party services provider to help achieve sustainability goals.