15ª encuesta anual de CEOS Retail & Consumo
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15ª encuesta anual de CEOS Retail & Consumo



Encuesta a los CEOs de diversas empresas de retail quienes se muestran preocupados por el panorama de la economía global y su impacto en el consumo, y reflejan inseguridad sobre las previsiones de ...

Encuesta a los CEOs de diversas empresas de retail quienes se muestran preocupados por el panorama de la economía global y su impacto en el consumo, y reflejan inseguridad sobre las previsiones de crecimiento durante los próximos 12 meses.



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15ª encuesta anual de CEOS Retail & Consumo 15ª encuesta anual de CEOS Retail & Consumo Document Transcript

  • Delivering results Key findings in the Retail and Consumer industry15th Annual GlobalCEO SurveySector summary
  • Commitments to doing more business globally are accelerating in 2012 Consumers make the rulesdespite economic, regulatory and other uncertainties. CEOs see the When it comes to the theme of thisfundamentals for future growth still squarely in place. year’s survey—delivering growth— the fate of the retail and consumerTo understand how businesses are preparing for growth in their priority goods sector, more than any other, ismarkets, we surveyed 1,258 CEOs based in 60 different countries and inextricably linked with the fortunes oftalked to a further 38 CEOs face-to-face for our 15th Annual Global the individual consumer. Three global trends concerning the consumerCEO Survey. Delivering results: Growth and value in a volatile world currently stand out.explores CEOs’ confidence in prospects, and how they are building localcapabilities and creating new networks for new markets. The first is weak demand in the industrialised economies. This is inCEOs are adapting how they go to market, reconfiguring processes and at large part due to persistently high unemployment, the sovereign debt crisistimes entire operating models. They are also addressing risks that greater in the Eurozone and the huge fiscalintegration can amplify and are focused on making talent more strategic challenges that exist throughoutto pursue market opportunities. the West.This is a summary of the findings in the retail and consumer goods The second trend is the increasingsector, based on interviews with 114 CEOs from retail companies in buyer power of the developing-market consumer. The income disparity33 countries and 245 consumer goods CEOs in 45 countries. between the middle classes in the emerging and developed economies is rapidly shrinking. The ranks of the middle class in the emerging markets are simultaneously exploding, in direct contrast with what’s happening in the developed markets, where the middle class is diminishing. To deliver growth, then, global consumer goods companies “At the moment, the mature desperately need the opportunities inherent in the emerging markets. markets are slow-growing or in decline with respect to high The third trend is the rise of the ticket consumer durables. In digitally-empowered consumer in both North America, the housing the developed and emerging markets. Thanks to technology, today’s collapse and high unemployment consumers have a tremendous amount have combined to create one of of information at their fingertips; they the lowest levels of consumer can shop anytime, anywhere. confidence in decades—which All these trends are reshaping the means discretionary purchases environment in which retail and get postponed. There are similar consumer goods CEOs operate—and the consumer constraints in Western dire state of the industrialised countries Europe as a result of the banking has left them feeling particularly crisis and sovereign debt issues.” sombre. Only 8% of retail CEOs and 14% of consumer goods CEOs think the Keith McLoughlin President and CEO global economy will improve in 2012. AB Electrolux, Sweden The level of confidence they display has also dropped. Last year, 39% of retail CEOs and 49% of consumer goods CEOs were very confident they could boost their company’s revenues over the next 12 months. This year, the numbers have fallen to 28% and 40%, respectively.2  PwC 15th Annual Global CEO Survey 
  • Given that the emerging markets are Balancing global capabilities still growing about twice as fast as the and local opportunities developed markets, such pessimism Greater global integration is reshaping clearly reflects renewed concerns about the business landscape, but succeeding the situation in the US and Europe. in this new milieu isn’t just about Retail and consumer goods CEOs are making products cheaply in one place worried about how economic stag- and selling them in another. It’s about nation and persistent unemployment becoming ‘multi-local’—building the in both regions will affect consumers’ right model and infrastructure, forming behaviour. the right strategic alliances, offering the right products and services. That’s no Making it happen easy task. So what steps are retail and consumer Different markets inevitably have goods CEOs taking to deliver growth different needs, and bringing global in the ‘new normal’ era, as it’s been organisation to the local level is a dubbed? They’re looking further afield: delicate balancing act. It’s imperative, a full 60% of consumer goods CEOs for example, to match products with think the emerging markets now hold local demand while exploiting the more promise for their companies than advantages of global scale; to respond the developed markets, although only rapidly to changing local conditions 36% of retail CEOs think the same. while adhering to global processes and They’re working overtime to adapt their standards; and to accommodate cultural approaches to the demands of digitally- variations while remaining consistent empowered customers. And they’re with global expectations. focusing on making their companies more efficient. Stay home or head abroad? In short, retail and consumer goods Given all these obstacles, both retail CEOs are refashioning the way they do and consumer goods CEOs are business to cope with a world where the understandably wary about setting up risks and opportunities are increasingly overseas operations. Retail CEOs, in interconnected but the sources of particular, are placing most of their bets growth are often local. This presents on their existing markets: 43% plan to three related challenges: concentrate on the areas in which they already do business, while only 16% • Reconfiguring operations to meet plan to head abroad (see Figure 1). local market needs • Defending against micro risks that can become macro disruptions • Making talent strategicFigure 1: Retail and consumer goods CEOs are focusing on their existing marketsQ: Which one of these do you see as the main opportunity to grow your business over the next 12 months? Increased share in 43 32 existing markets 30 New products/service 18 27 development 28 New geographic 16 16 markets 18 Mergers and 15 12 acquisitions 12 New joint ventures and/or 5 11 strategic alliance 10 % Retail Consumer goods Total sampleBase: All respondents (Total sample, 1,258; Retail, 114; Consumer goods, 245)Source: PwC 15th Annual Global CEO Survey Key findings in the Retail and Consumer industry  3 
  • That’s probably because it’s especially tough for retailers to break into new territories. The most successful retailers forge a personal bond with customers— and it’s hard to make that connection in a totally different culture. Regulation is another hurdle. India has only just opened up the domestic market to allow 100% foreign ownership of single-brand stores, for example. Protectionism, inflation and sheer size have made Brazil a difficult market for global retailers as well. Luiza Helena value,” he says. Trajano Inácio Rodriguez, CEO of Brazilian electronics and furniture As for where those consumer goods retailer Magazine Luiza SA, points out CEOs with foreign forays in mind plan that foreign companies often take four to go, more than a quarter have their or five years to establish a strong sights set on China. The US comes next presence in the country. Ricardo Neves, on the list; it’s a top-three destination one of our local partners, agrees. for 22% of our sample, followed by “Brazil’s an economy that in some ways Brazil (18%), Germany (14%), Russia has been very closed, even when (10%) and India (9%). The lure of the compared to other emerging markets. BRIC economies is clear; consumer Historically, we’ve been bureaucratic goods CEOs are hoping to diversify their and put a lot revenues and hedge against the impact of fences around the internal markets,” of regional downturns. he explains. Serving digitally But, as Figure 1 shows, consumer goods empowered consumers CEOs are also putting more emphasis on But many retailers and consumer goods developing new products for existing CEOs don’t need to go offshore to markets than heading abroad. This is generate more business. Other research rather more surprising, since many large we’ve recently completed shows that the consumer brands have already proved way people shop is changing. More than very popular in the emerging economies half of all Internet shoppers expect to and most consumer goods CEOs believe spend more online in the future. And such markets offer the biggest opportu- their loyalties are shifting; strong nities. That said, 23% of consumer brands are becoming more important goods CEOs plan to form new strategic than the locations where the goods are alliances or complete mergers and for sale.1 acquisitions, some of which may involve foreign firms. That’s got two major implications. First, a retailer with an excellent Entering a new market by acquiring a reputation can sell its wares as easily local competitor provides immediate in Boston as in Bangalore—and vice access to local facilities and distribution versa. Second, a consumer goods networks. It’s certainly a strategy company with a first-rate brand can sell favoured by Erdal Karamercan, Presi- directly to consumers, a route many are dent and CEO of Turkey’s Eczacıbaşı now considering. Group A S. “We still invest in our own brands; but then we also acquire brands Customer expectations and attitudes are that are successful in their home changing dramatically, too. Thanks to countries/sectors to increase our added the Internet and a rapidly proliferating array of personal devices, consumers have more information and more choices than ever before. They’re also more vocal—and what they say carries more weight; sales can surge or slump in response to a campaign on Facebook or Twitter. 1 PwC, ‘Customers take control: How the multichannel shopper is changing the global retail landscape’ (2012),4  PwC 15th Annual Global CEO Survey 
  • Figure 2: Customer demand, uncertain growth and competitive threats top the strategic agendaQ: Which of the following factors influence your anticipated need to change strategy? 68 Customer demand 64 65 Uncertain economic 69 61 growth 66 56 Competitive threats 56 56 36 Changes in regulation 38 41 37 industry disruption 36 39 % Retail Consumer goods Total sampleBase: All respondents who stated that they are changing their strategy (Total sample, 888; Retail, 87; Consumer goods, 169)Source: PwC 15th Annual Global CEO SurveyNote: Top five drivers of change listed So it makes sense that customer demand Resilience to macro disruptions“In a globalised world, even and competitive threats should be two and micro riskslocalised crises end up having of the three main reasons retail and Globalisation and digitisation are consumer goods CEOs cite for changing creating new opportunities, then, butan impact on all economies.” their strategies (see Figure 2). They they’re also creating new risks—risksLuiza Helena Trajano Inácio Rodriguez know they’ve got to stay abreast of that can turn from local problems intoCEO changing customer expectations by macro disruptions. The sovereignMagazine Luiza SA, Brazil enhancing their digital commerce debt crisis in the Eurozone is one such offerings, integrating the channels they example. It’s played a large part in use and investing in powerful analytics depressing customer demand in the programmes to better understand developed economies, as CEOs in the their customers. sector are acutely aware: 40% of retail CEOs and 50% of consumer goods CEOs Only by doing that can they fend off the say it’s directly affected their companies. rapidly increasing competition. For retailers, it’s rival retailers in other So how are they responding? Most of countries and consumer goods compa- them are making their businesses more nies selling directly to consumers that efficient: 77% of retail CEOs and 76% of represent the biggest dangers. For consumer goods CEOs have implement- consumer goods companies, it’s the ed a cost-cutting initiative in the past private-label brands to which consumers year, and nearly as many plan to do so are turning as they tighten their belts. again in the next 12 months. But they’re not just cutting costs; this desire for more efficiency extends to the innova- tion process as well. Key findings in the Retail and Consumer industry  5 
  • Three-quarters of consumer goods CEOs intend to change their R&D and innovation facilities, for example, and a quarter of them have ‘major’ alterations in mind. More than two-thirds are focusing on developing new products and services, as distinct from new business models. Clearly, they’re hoping that new products will awaken developed-market consumers out of their spending slumber. Retail CEOs are less interested in changing their companies’ R&D. Even That explains why almost 50% of retail so, 61% still plan to make alterations in and consumer goods CEOs are worried this area, probably because they about the security of their supply chains, recognise that innovation can help compared to just 34% of the total companies forge a stronger link with sample. It also accounts for the concerns customers. “Innovation is not just about they express about exchange rate technology,” Luiza Helena Trajano volatility. A full 64% of retail CEOs and Inácio Rodriguez remarks. “It means 71% of consumer goods CEOs are having different ways of providing good worried about the potential for dramatic customer service, because delivering fluctuations in exchange rates, and their what the customer wants is your impact on product prices, which is obligation. This means that surprising markedly higher than the overall your customers by doing things average of 58%. differently from your competitors is what makes a difference. The same goes The talent challenge for customer service: it doesn’t matter Many CEOs say that lack of the right how many processes you invent or how talent in the right place is the single many written procedures you have in biggest problem they face in trying to place, your relationship with the person expand their companies. Retail CEOs— you are serving is paramount.” particularly the former—are much more positive on this front. Only 22% think Building a presence in the emerging it’s become harder to hire workers in“Companies with the best talent markets also brings a wide range of their sector (compared to the overall risks, including government instability,win. So the question is how do average of 43%). And only 46% are civil unrest, natural disasters, corrup-you attract, develop and retain somewhat or seriously concerned about tion and fraud. Indeed, it’s not eventhe best talent? You have to adjust being able to recruit people with the necessary to have a physical presence in skills they need (versus 53% of theand make sure that your job such countries to be exposed to some of total sample).offers are tailored to meet these these perils. Many retailers and consum-new expectations.” er goods companies that don’t have Yet talent constraints are already taking global ambitions still rely on global their toll on a significant number ofKeith McLoughlin supply chains to stock their shelves or retailers and consumer goods com-President and CEO provide the components they need. panies: 35% of retail CEOs and 43% ofAB Electrolux, Sweden consumer goods CEOs have seen their company’s labour costs rise more than expected in the past 12 months. Similarly, 22% of retail CEOs and 29% of consumer goods CEOs say their company’s ability to innovate has been impaired. And nearly a quarter have had to delay a key strategic initiative. Can technology help? Consumer goods CEOs certainly think so. Over the next three years, 44% plan to invest in new6  PwC 15th Annual Global CEO Survey 
  • technologies specifically to circumvent Making talent strategic activities—which are also criticalskills shortages. One obvious step is to Adopting a more creative and flexible benchmarks. And even those whoautomate key processes, but technology approach to the talent challenge is only measure everything that matters don’tcan also play a valuable role in R&D— part of the answer, though. The other is get the whole story. More than half ofwhere, for example, idea management getting the information required to retail CEOs would like to get moresystems can be used to help engineers make the right decisions in the first information on five of the six keybecome more productive. Retail CEOs place. Almost all retail and consumer pointers listed in Figure 3a. And, asare more doubtful; only 27% plan goods companies track traditional Figure 3b shows, more than half ofto invest in new labour-saving indicators like productivity and labour consumer goods CEOs would like totechnologies, although many are costs. But they’re less likely to measure get more information on all of them.actively investing in a stronger digital the cost of losing talent or the returncommerce infrastructure. they get on training and other such Figure 3a: Retail CEOs want more information on key talent measures Q: When making decisions, how important is it to have information on each of the following talent-related areas? 100% 96% 73% 80 89% 90% 89% 89% 60 30% 33% 40 52% 19% 20 23% 25% 0 Staff productivity Employees’ views Labour costs Assessments Return on Costs of and needs of internal investment on employee advancement human capital turnover Retail CEOs who rate as important or very important Retail CEOs who receive comprehensive information Base: All respondents (Total sample, 1258; Retail 114) Source: PwC 15th Annual Global CEO Survey Figure 3b: Consumer goods CEOs are also dissatisfied with the quality of the information they Q: When making decisions, how important is it to have information on each of the following talent-related areas? 100% 88% 84% 77% 74% 80 94% 91% 60 46% 40 29% 28% 31% 21% 19% 20 0 Staff productivity Employees’ views Labour costs Assessments Return on Costs of and needs of internal investment on employee advancement human capital turnover Consumer goods CEOs who rate as important or very important Consumer goods CEOs who receive comprehensive information Base: All respondents (Total sample, 1258; Consumer goods 245) Source: PwC 15th Annual Global CEO Survey Key findings in the Retail and Consumer industry  7 
  • What’s next? We’ve distilled eight key questions 4. Are your innovations creating 7. Where are the biggest from the feedback CEOs have given v alue for your customers—or opportunities for business us in this year’s CEO Survey: just novelty? and government to coordinate better? 1. How local is your global 5. Do your strategic plans account growth strategy? f or the macro impact of 8. Does your governance model micro risks? account for the ways in 2. How are you balancing global which organisations’ and capabilities with 6. Are you responding to the needs people’s expectations local opportunities? and constraints of the are changing? communities in which 3. Is your talent strategy fit you operate? for growth?ContactsJohn Maxwell Michael Brewster Susan EggletonGlobal Retail and Consumer Leader Global Retail and Consumer Marketing Global Retail and Consumer Marketingjohn.g.maxwell@us.pwc.com michael.j.brewster@us.pwc.com susan.eggleton@us.pwc.comAcknowledgementsPwC gratefully acknowledges the Download the main report, access the resultscontribution to Delivering results: and explore the CEO interviews from ourKey findings in the Retail and 15th Annual Global CEO Survey online atConsumer industry provided by: www.pwc.com/ceosurvey.Keith McLoughlinPresident and CEOAB Electrolux, SwedenLuiza Helena Trajano InácioRodriguezCEOMagazine Luiza SA, BrazilErdal KaramercanPresident and CEOEczacıbaşı Group A S, Turkeywww.pwc.com/ceosurveyPwC firms help organisations and individuals create the value they’re looking for. We’re a network of firms in 158 countries with close to 169,000 people who arecommitted to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at http://www.pwc.com/.This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.© 2012 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see http://www.pwc.com/structure for further details. NY-12-0524