This is the first post in a five-part blog series focused on the consumer products industry.
This month’s blog series will provide an overview of the consumer product industry and its future outlook, and then we will analyze the industry by region: North America, South America, Asia, and Europe. By the end of this week, these blogs will offer you a thorough summary of what’s happening in the consumer product industry and emphasize the importance of the industry in the global market.
The consumer products are the practical products purchased by the average consumer, such as toiletries, appliances, electronics, beverage & food, and other generic household items. These are the final goods that consumers will see in stores and are generally divided into durable (e.g. furniture) and non-durable goods (e.g. toiletries). It is one of the most powerful industries and represents about 2/3 of the volume of trade in the world. Interestingly, the consumer product industry plays a role in other industries, especially in advertising and retail.
The future outlook for the industry looks bright, as emerging markets begin to play a bigger role in boosting demand for the consumer goods in the world. As in many industries, the role of advanced technology and the internet is becoming more important with time. Companies worldwide are utilizing customer relationship (CRM) programs to create a closer relationship with their consumers. They are also taking advantage of the various supply chain benefits of Radio-frequency identification (RFID) technology.
Experts believe that innovation will be a primary driver for growth in this industry. Companies are expected to take a more creative method to producing and testing the consumer goods, as compared to the tradition time-consuming methods. M&A activity also happens to be an attractive route for companies to grow internationally to boost their bottom line, as globalization will allow them to capitalize on the growth in emerging markets.