In a world where the definition of progress and success goes beyond growth and money, businesses will need to adapt. But there are opportunities to explore. By understanding what is likely to change consumer expectations and behavior, businesses can shape their own future.
1. Creating a new value pool
While some traditional value pools will continue to drive revenue and margins, others will contribute in other ways, creating a more holistic vision of what “good” looks like. A strong financial balance sheet alone will not create the value a company needs to win in the marketplace, especially if it comes at the expense of other factors. Companies will no longer be measured by how much or how much they sell, but by what services they can provide, what impact they can have, and what values and communities they can support.
2. Meet needs in new ways
Technology will enable consumer companies to do more with less by scaling AI, unlocking new manufacturing techniques and efficient operational structures, and enabling personalization with less cost and resource usage. Meeting consumer expectations will drive a shift to service-based models across categories and sectors, allowing consumers to share in value creation through peer-to-peer selling and brand collaborations. These will be underpinned by a new corporate purpose that meets expectations around well-being and impact by assessing real costs and benefits beyond those measured in monetary terms.
3. Rethinking contribution and impact
Retailers may be measured not only by the revenue their stores generate, but also by the role they play in their communities, their contributions to employee well-being, and the insights and data they give back to their brand. Consumer goods companies may find that their success depends not just on their ability to sell products, but also on their ability to improve consumer health or address systemic environmental issues.
Seeing long-term value
All these factors point to one business driver that dominates them all: long-term value. Intangible assets are becoming more prominent as value drivers, with social and environmental KPIs joining financial metrics. As connectivity increases stakeholder awareness and influence, new definitions of success will challenge the prioritization of growth and margins.
Today, growth and profits are seen as indicators of a consumer company's relative success in serving market needs. Tomorrow, companies will be directly responsible for how they serve the needs of people and the planet. The success a company achieves in the marketplace will depend on these factors.
