Top priorities for consumer executives in the UAE - growth, consumer trust and omni channel strategy and technology
Dubai, July 2015: KPMG’s third annual ‘Top of Mind’ consumer survey, in conjunction with the Consumer Goods Forum (CGF), has found that growth and top-line expansion, consumer trust and a sound omni-channel strategy are the top priorities for consumer company executives - both globally and in the UAE.
KPMG and CGF surveyed close to 550 senior consumer, manufacturing and retail executives globally to gain insight into the economy, the impact of competition, and critical disrupters for the consumer industry. For the first time, respondents to the survey included key decision makers from consumer businesses based in the UAE.
47% of UAE consumer companies reported that income had increased by more than 10% in 2014 – far outstripping the global trend where only 15% had seen similar growth. Perhaps recognizing this, all of the UAE respondents said that expansion and top line growth are going to be critically or very important to success over the next 1-2 years – compared to a global response of just three-quarters.
Anurag Bajpai, a partner with KPMG Lower Gulf and the leader of its retail practice said: “While growth and expansion have traditionally been top three issues for senior management, executives globally and in the UAE have identified this as their top focus for 2015. The focus on omni-channel echoes the exceptionally strong annual growth in e-commerce globally, as well as the increased role of the internet throughout the customer's path to purchase and the supply chain. However, delivering on omni-channel potential is widely recognized as a challenge. At the same time, 70% of UAE respondents feel that protecting customer and company data is going to be important to company success over the next 24 months.”
Willy Kruh, the global chairman of KPMG’s consumer markets practice said: “With topline expansion and growth being this year’s top priority as well as the top challenge, the survey data clearly shows that a new battleground is emerging—how to understand and win over customers.
“There are some hard choices to be made to build or maintain a competitive advantage. Companies must be aware of - and proactively address - potential disruptors—the optimal time is usually long before you think it’s the optimal time.”
Having established that top line growth is a – if not the – key goal for almost everyone in the industry, the survey identifies six specific levers that are likely to exert the most influence on a company’s ability to grow revenue – grouped as drivers (consumer trust and omni-channel), enablers (consumer knowledge and supply chain), and derailers (data security and sustainability and corporate social responsibility).
About the research
• The survey was conducted during the first quarter of 2015.
• 539 senior executives from large consumer goods companies around the world were surveyed for the study.
• Companies surveyed are from the consumer manufacturing and retail sector, with at least $250 million in revenues.
• Three quarters of the respondents are C-suite or above, with influence or insight into their company’s global strategy.
KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 155 countries and have more than 174,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
KPMG’s Global Consumer Markets practice encompasses the food, drink and consumer goods and retail sectors, and comprises an international network of professionals with deep industry experience. This industry-focused network enables KPMG member firm professionals to provide consistent services and thought leadership to our clients globally, while maintaining a strong knowledge of local issues and markets.
About The Consumer Goods Forum
The Consumer Goods Forum (CGF) is a global, parity-based industry network that is driven by its members to encourage the global adoption of practices and standards that serves the consumer goods industry worldwide. It brings together the CEOs and senior management of some 400 retailers, manufacturers, service providers, and other stakeholders across 70 countries, and it reflects the diversity of the industry in geography, size, product category and format. Its member companies have combined sales of EUR 2.5 trillion and directly employ nearly 10 million people, with a further 90 million related jobs estimated along the value chain. It is governed by its Board of Directors, which comprises 50 manufacturer and retailer CEOs.
For more information, please visit: www.theconsumergoodsforum.com
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The views and opinions expressed herein are the personal opinions of the interviewees and authors based on their personal experience working as Auditors in the industry and do not necessarily represent the views or opinions of KPMG International or any KPMG member firm.