2015 Global Consumer Executive Top of Mind Survey

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To stand still is to fall behind

2015 Consumer Executive Top of Mind Survey

kpmg.com/CMsurvey


KPMG and the CGF recently asked 539 senior executives at global consumer companies what their top of mind priority was for the

coming year

Although talent, growth, consumers and data were the areas most often rated as ‘very’ or ‘critically’ important to success,

Global expansion and top line growth clearly emerged as executives’ topmost priority for 2015.


…The question is, how?

So – the goal is to grow…


THE DRIVERS, ENABLERS AND DERAILERS OF GROWTH:

Omni-channel and technology

Consumer trust

CSR and Sustainability

Data security

Supplychain

Consumer knowledge

Driver Driver DerailerEnabler Enabler Derailer


Consumer trust1 in 3 executives said building consumer trust would be

an area for increased investment over the next year. This is the top area of focus after growth.

Driver

$


“No matter how good your product

or service is, you will not be able to

grow without the trust of your

customers.”

Willy KruhGlobal Chair, Consumer MarketsKPMG International

Driver



Omni-channel and technology

The growing role of the Internet throughout the path to purchase continues to be critically important to companies’ ability to compete.

Yet this area remains a significant challenge for many executives.

25%said it’s a

top challenge

Driver


Just over half of the retailers surveyed offer a seamless shopping experience and slightly fewer

offer mobile shopping

Seamless shopping experience

Ability to shop from a mobile device

55% 52%

Driver


“Becoming ‘diagonal’ will help

consumer companies cut through

emerging technologies like smart

watches or new payment methods

that may be controlled by third

parties.”

Jeanne JohnsonHead of Omni-ChannelKPMG in the US

Driver



Consumer knowledgeThe possibilities of data and analytics have not yet been fully

absorbed and integrated by most companies.

Without deep insight into customer preferences and behaviors, success is far from guaranteed – creating a competitive edge for

those who can grasp it.

Enabler


1 in 5 respondents said that they

understand how their customers will actually behave

Enabler


“The competitive edge will go to

those companies who master

‘turning data into insight into value.’”

Thomas ErwinSenior Partner, Data & AnalyticsKPMG in Germany

Enabler



Supply chainThe move to digital and mobile shopping puts pressure for

efficiency on all aspects of supply.

As a result, this is one of the areas that is important to many who named it as an area for increased investment.

Enabler


24%of executives said they are

planning to increase investment in their supply chain

Enabler


“Regardless of whether companies

think supply chain and operations

improvements are needed to fuel

growth – they should ensure they’ve

got a cross-functional,

well-constructed supply chain

strategy.”

Andrew UnderwoodHead of Supply Chain forConsumer MarketsKPMG in the UK

Enabler



Data securityOver half of the respondents believe their company has the skills and technology to manage cyber security, indicating a possible

false sense of security.

Even executives who have already experienced a breach show no greater concern about the issue than those who have not.

Derailer


Derailer

Top 4most significant threats executives said they

feared as a result of a data breach

Reputational damage

and loss of consumer trust

Inability to deliver

products or services

Lost time due to crisis management

Loss of intellectual property


“Threats to companies’ data are

dynamic – they can [also] be

attacked by activists, government or

competitors.”

Anthony BuffomanteHead of Cyber Security for Consumer MarketsKPMG in the US

Derailer



CSR and SustainabilityWhen it comes to corporate social responsibility (CSR), food and

product safety ranked as companies’ top priority, area for investment, and greatest challenge.

As a key driver of consumer trust, this is not surprising.

Derailer


2 out of 3 executives said consumer trust

is the primary driver of their sustainable practices

Derailer


“Customers will leave if they

don’t feel like they can trust a

brand. Companies need to think

about what their brand stands

for, and how they can build

tangible trust.”

Julio Hernandez Global Head of KPMG’s Customer Center of Excellence

Derailer



IS YOUR COMPANY READY FOR GROWTH?

Is your company actively building consumer trust?

Is your omni-channel strategy as dynamic as your merchandising plan?

Do you understand the risks of a security breach? Are you prepared?

Do your customers understand and value your commitment to CSR and sustainability?

Are you leveraging the intelligence your customer data holds?

Is your supply chain agile and efficient enough to meet new and growing demand?

Customer trust

Omni-channel

Datasecurity

CSR & Sustain-ability

Customer knowledge

Supplychain


WHO WAS SURVEYED

Source: KPMG 2015 Consumer Executive Top of Mind Survey

TitleCEO/President: 16%Director/Board member: 9%Other C-suite: 50%Senior management: 22%Other: 2%

Company size (USD)Less than $500 million: 14%$500 million-$999 million: 25%$1 billion-$4.9 billion: 27%$5 billion-$19.9 billion: 19%$20 billion-$50 billion: 9%Over $50 billion: 6%

Primary businessManufacturer: 48%Retailer: 32%Distributor: 20%

SubsectorConsumer goods: 38%Food or beverages: 31%Clothing, apparel, or footwear: 16%Diversified: 8%Agribusiness: 2%Other: 5%

Company headquartersEurope and Russia

Latin America

Asia Pacific

Africa/Middle East

Northern America

28%

9%

13%

16%

34%


Willy KruhGlobal Chair, Consumer Markets

KPMG [email protected]

@WillyKruh_KPMG

Peter FreedmanManaging Director

The Consumer Goods [email protected]

@CGF_The_Forum

For more information on the report contact us or visit kpmg.com/cmsurvey


http://www.kpmg.com/cmsurvey

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© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firmsof the KPMG network of independent firms are affiliated with KPMG International. KPMGInternational provides no client services.

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2015 Global Consumer Executive Top of Mind Survey