What’s keeping consumer marketers in China awake at night?

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What’s keeping consumer marketers in China awake at night?

At a recent forum, we hosted about 110 CxOs from over 65 fast-moving consumer goods companies as well as a handful of executives from the pharma, auto, and high tech sectors in China.  Both local and global companies were well represented.  To kick-off the event we asked the group 3 questions, responses in the charts below.  Contrasting the responses from local and global companies, I drew the following conclusions:

■ Everyone is facing increased competition, much of it coming from companies that had previously focused on a few categories broadening into adjacent areas

■ Multinationals are struggling with rising costs, in particular the rising cost of labor.  The approaches they take to raising productivity in more mature markets may not be working as well here

■ Multinationals have a tendency to blame the market slowdown much more than locals, for whom perhaps slightly slower growth is a chance to catch up organizationally and operationally

■ Local consumer companies are recognizing that they need to up their game on customer insights and channel management to stay competitive

■ A majority overall seem to believe they are distinctive in modern trade. Perhaps not.

■ Unsurprisingly, multi-channel strategy is seen as a major improvement area for locals and multinationals.  Advanced analytics has similar needs.  Both areas have emerged only recently and are developing so fast that few companies are on top of the implications

■ Local companies finally see the need to bring science to assortment optimization, rather than the traditional “put the product out there and let’s see who buys it”

■ Net net, there is an increasing convergence in understanding of what best practice in customer management is, and a convergence in the operational model to deliver it.  Competition is only going to get more intense

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By |October 21, 2013|Categories: Gordon's View|0 Comments

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