CPG firms target AI to keep up with changing customer:
The ‘consumer packaged goods (CPG)’ industry is undergoing substantial disruption. Business models are expected to change significantly, with changing consumer demographics, increasing competition and the evolution of new distribution models.
To understand the perspectives of CPG firms at this transformative stage, Infosys conducted a global study of CPG firms by soliciting views from 502 business as well as IT users. The objective of this
study was to understand the factors influencing the business strategies of CPG firms, the solutions they see, the challenges they expect and their strategies to navigate through the rapidly evolving environment. This report, “CPG firms target AI to keep up with changing customer” serves as a guide for CPG companies trying to gauge the factors influencing the market, understand the challenges and equip themselves to lead in this constantly changing environment.
Some of the key trends that came across from the report are:
- Rapidly changing consumer demographics (32%), particularly urbanization, rise of middle class, and millennial spending.
- Rise in competition:
- Growth of hyperlocal players (30%)
- Emergence of new players with strong backing (30%)
- Rise of e-commerce firms with no physical presence (33%)
- Dynamic inventory management across different channels to respond to changing demands (30%).
- CPG brands opening retail outlets to target consumers directly (30%).
- Mergers and acquisitions to access new markets (30%).
- Shift from legacy to lifestyle based brands (29%).