Home Research KPMG Study: Is it zero hour for consumer packaged goods companies?

KPMG Study: Is it zero hour for consumer packaged goods companies?


(CPGs) companies can no longer count on continued success based on the historic formula of mass production to mass distribution to mass marketing ('mass-to-mass-to-mass').

Geographical entry points are dwindling, and stores are now closing faster than they are opening. The ability to make new markets with product innovation (i.e., new flavor, features, or technology) has been largely co-opted by new brands with specific, differentiated attributes. As a result, the core of competitive advantage is shifting.

The benefits of growth, influence, and market share are quickly transitioning from traditional CPGs and retailers to a combination of online start-ups and platform companies. These new powerhouses are investing heavily in understanding the modern consumer and offering tailored propositions to meet specific needs.

The implications? The retail landscape has already watched dozens of brand names like Blockbuster become a distant memory. This new threat is real and the time to act is now. With once impenetrable business models exposed and at risk, CPGs must get ahead of the full-scale disruption curve and invest in robust digital and social platforms and channels that will enable them to effectively engage with consumers…

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