Overview of the Retail Industry
The global retail industry is marked by rising GDP growth, burgeoning population, greater disposable income, and increasing consumer spending. The retail industry at large comprises of establishments who are involved in selling merchandise for household consumption. With the rising middle-class population, the Asia-Pacific region is a market leader in this space, representing 35% of the global market. The recent shift toward a consumer-centric environment will contribute to the growth of the retail space as consumers’ are preferring online shopping over conventional in-store shopping. Although the consumer goods space will witness promising growth owing to the growth of e-commerce platforms, many other factors will influence this industry’s growth over the next couple of years:
Adhering to changing consumer demands: Today, with the altering preferences of the consumers, the consumer goods space needs to refine their existing models and shift toward healthier and sustainable options. The fluctuations in demand for products among the consumers are forcing consumer goods manufacturers to introduce new production techniques and reduce time-to-market for the products offered. Also, with the economic volatility, manufacturers are facing pressures to offer low-cost consumer goods to meet their demands.
Shrinking operational margins: In this world of relentless competition, leading consumer goods manufacturers are facing challenges while offering high-quality products and finding innovative ways to curtail their additional expenditure. Also, businesses should consider the factors such as oil prices and their effect on transportation costs to meet their operational expenses.
Compliance pressures: The global regulations are dynamic, and with the changing regulations imposed by the government, companies are facing immense pressure to mitigate operational risks and manage non-conformances.
To address such challenges and increase their market presence, leading procurement organizations are utilizing category market intelligence solutions.
The Business Challenge and Journey
A prominent consumer goods manufacturer, offering a wide array of products, wanted to understand the market landscape and gain a detailed description of the market’s performance. The client wanted to understand the competitive landscape and assess current market trends, developments, and the potential drivers and opportunities. With the help of the category market intelligence solution, the client wanted to gain an overview of the market players and the supply chain and information related to the supplier’s pricing, cost structure, and price model analysis. The primary concern for the client was to assess the potential bottlenecks and compliance and regulatory issues in the consumer goods space.
To profile the right target market and cater to the business requirements, SpendEdge’s category market intelligence experts personalized a comprehensive research methodology. The extensive research comprised of qualitative and quantitative research techniques with the prominent players in the consumer goods space.
During the course of the category market intelligence engagement, the client was offered a SWOT analysis to identify the barriers, opportunities, and market trends. The solution also helped the client achieve operational efficiency while emphasizing on technologies to support their product innovations. Moreover, the solution assisted the consumer goods manufacturer to regulate costs associated with compliance and better manage their relationship with the suppliers.
Fundamental questions answered in this category market intelligence study include:
The category market intelligence solution offered by SpendEdge shed light on the fundamental drivers and the supply chain to address the supplier diversity for the products offered in the market. The engagement also focused on the potential ways to streamline their operations through a quick win analysis strategy. The engagement also brought into limelight the procurement best practices that assisted the client in refining their product offerings by gaining adequate buyer insights.