Introduction

Dear reader,

We are proud to present you with the 11th edition of our Retail and Consumer Journal, with a selection of Oliver Wyman insights on the most pressing top management issues in the global retail and consumer goods sector. Among others, the Journal delves into these critical topics:

Operating model resilience is more important than ever

As geopolitical tensions rise, protectionist policies gain traction, and technological advancements accelerate, company leaders are increasingly compelled to balance growth with effective risk management. Our recent insights reveal that leaders are addressing immediate concerns such as inflation and regulation and strategically investing in technologies like artificial intelligence (AI) to enhance operational resilience and adapt supply chains to new realities.

Social commerce is redefining consumer engagement

The rise of social commerce and the impact of nano-influencers are significantly altering marketing strategies, compelling brands to rethink their engagement models and explore innovative commercial approaches. In markets like China, where e-commerce is rapidly advancing, brands are urged to target their content to high-value consumers and leverage popular platforms for optimal reach. The remarkable growth of discount variety retail offers fast-moving consumer goods brands a unique opportunity to expand their market presence. At the same time, the competition from private labels necessitates a renewed emphasis on brand differentiation and consumer loyalty.

Striking the right customer experience balance is critical

Despite recognizing the importance of exceptional customer experiences, many companies struggle to deliver them. A shift towards customer-centric pricing strategies is essential, focusing on consumer perceptions and needs rather than solely on product features. Furthermore, generative AI is poised to revolutionize retail operations, enhancing personalization and optimizing supply chain management.

Stronger stakeholder ecosystems drive competitive advantage

Collaboration between retailers and suppliers is also essential in this dynamic environment, necessitating updated terms and conditions reflecting current market dynamics and fostering strong partnerships. As key trends such as digitalization, sustainability, and changing consumer behaviors drive retail transformation, companies must embrace innovation and agility to thrive.

Addressing these questions correctly is vital to industry leaders’ efforts to meet the challenges and opportunities that lie ahead. We aim to provide advice to help you navigate this tumultuous landscape and leverage the potential for growth within every challenge.

We hope you find this exploration both enlightening and inspiring.