The document discusses key trends in the global consumer industry and omni-business models from a UAE perspective. It summarizes insights from a survey of 400 consumer executives and 7,100 consumers in 19 countries. The survey found that consumer expectations are rising faster than companies can keep up. To succeed, companies need to become hyper customer-centric by using data and technology to customize experiences. They also must transform digitally and develop integrated omni-channel supply chains focused on customer experience. Differences between UAE and global company priorities are also noted.

1. Theomnibusinessmodel:
aUAEperspective
Earlier this year, KPMG International and the Consumer Goods
Forum (CGF) surveyed 400 senior consumer executives at the
world’s largest consumer and retail brands. 7,100 consumers in 19
countries were also asked about their shopping behaviors and
preferences to see how aligned executive strategies are with
consumer sentiment. In this perspective, we share insights and
leading strategies from some of the world’s most advanced omni
businesses, with a UAE perspective on five key trends.

2. Globally, it is clear that the consumer
industry has moved from facing disruption to
being disrupted. Supply chains have been
revolutionized. So have customer touch
points – to the extent that achieving
customer-centricity has become a
determinant of survival, rather than a
differentiator. But how accurately does this
apply in the UAE, with high consumption
levels and one of the world’s highest
smartphone penetrations? In our global
study – Seeking customer centricity: the
omni business model – we look at how
markets and competitive landscapes are
changing, creating significant opportunities
for agile, forward looking companies.
Globally, leading edge retailers and
manufacturers – and their supply chain
partners – are transforming their companies
into digital-first, customer-centric integrated
omni businesses. In this brief overview, we
look at how developments in the UAE reflect
changes in the global consumer
marketplace.
Businesses are transforming from omni-
channel to omni - moving from seamless
integration across sales channels to
seamless integration of all functions, enabled
by digital technology and centered on the
customer. Omni is no longer about
marketing – if it ever was. Consumer-facing
organizations must transform both their
experience design and their delivery
architecture, operating with experience
centricity from the inside-out and the
outside-in.
I am sure you will find our perspective
interesting and we would be pleased to
discuss it with you.
Our survey suggests that, unless tomorrow’s consumer
businesses are laser-focused on the consumer, using data
and analytics and technology to target, serve and
customize products and experiences for a highly
segmented customer base, they will fail. Companies need
a deeper, multi-dimensional understanding of their
customers. Advanced data analytics and smart
technologies can be used to track and anticipate customer
behavior in near real time. Personalized products and
experiences can be delivered when, where and how the
customer wants them. But – and it is a big but – keeping
up with fast-changing customer demand is not easy.
UAE data suggests that UAE consumers expect more –
and that consumer companies globally are lagging behind
customer expectations.
Becoming hyper customer-centric
Digital channels are already replacing bricks and mortar
outlets – both here in the UAE and globally. Digital
transformation offers both opportunities and challenges – if
done right, it should enable consumer companies to rethink
their strategies, operations and business models, generating
new levels of growth, efficiency, productivity and
competitiveness. However, as we have seen across the
economic landscape, digital is not easy – and it should not
be seen as a cure all.
Increasing use of social media and other new media and
attracting, developing, and retaining talent are seen as
top priorities globally and in the UAE. Expanding global
operations was more than twice as important for UAE
companies. Improving service and customer experience
and moving to a more integrated omni-channel model
barely registered for UAE companies, although cited by
approximately one in four of global consumer companies.
Developing a digital-first mindset
10%
20%
30%
40%
50%
60%
70%
80%
havebecomemoredistrustfulofbigbusiness/bigbrands
wanttocollaborateonnewproductdevelopment
makepurchasedecisionsbasedonethicaland
environmentalconsiderations
wantmoreoptionsforpickingup/returningproducts
demandlesswasteinproductionandpackaging
arelookingfornewwaystobuy,useorsharethegoodsand
serviceswesell
expectaseamless“omnichannel”experience
shoponlinetofindthelowestpricesandbestvalue
demanddetailedandtransparentproductinformation
wantbetterin-storeserviceandexperiences
Are UAE customers more demanding?
0% 10% 20% 30% 40% 50%
Expanding global operations
Improving service and customer experience
Moving to a more integrated omnichannel
model
Increasing use of social media and other new
media
Driving digital transformation throughout our
business
Making better use of data and analytics
Building and sustaining customer loyalty
Collaborating with customers and suppliers
Improving our mobile capabilities
Complying with global regulations
Different priorities for UAE consumer
companies
There are no easy ways to develop a digital-first mindset
but experience suggests that businesses should focus on
three leading practices – defining digital; developing a
multi-speed operating model; and making digital
everyone’s responsibility.
Anurag Bajpai
Partner | Head of Retail
KPMG in the Lower Gulf
Global
UAE
Global
UAE

3. Trust is the best way to maintain customer loyalty in a
digital world where consumers have access to huge
amounts of information – not all of which may be accurate.
In emerging markets, where consumer protection
standards can be relatively weak, building trust is even
more important.
The optimal supply chain structure in today’s omni
business environment is fully integrated with the front-
end of the business and is flexible and agile enough to
react to constantly changing customer needs and
market dynamics. Supply chains need to balance cost
with keeping customers happy and providing a better
consumer experience – a level of sophistication that
very few companies have been able to provide.
Companies are approaching this challenge by making
better use of data and analytics, which is also being
used to improve coordination with supply chain
partners.
The top three priorities for UAE companies – while they
generally reflect global priorities – suggest that UAE
consumer companies understand there is something of
a gap between current and leading practice - and that
they need to catch up. More than half of UAE
respondents said that improving distribution speed and
efficiency was a top supply chain priority. At the other
end of the scale, optimizing tax impacts got relatively
few mentions – although this may change as the
imposition of VAT gets closer.
Creating a supply chain fit for
purpose
Our survey suggests that building an omni business model
will be vital to win in tomorrow’s consumer industry.
Experience suggests that there are a number of critical
success factors and challenges:
Again, there are marked differences between UAE and
global responses. Globally, consumer executives saw
technology and culture as the two most important
challenges – both of which ranked relatively lowly with UAE
executives. Measurement and understanding of ROI and an
agile supply chain were significantly more important to global
executives than to their UAE peers.
Building a world-class omni business
0% 10% 20% 30% 40% 50% 60%
Improving distribution speed and efficiency
Aligning front and back-end operations
Ensuring quality and adherence to standards
Expand global business and sourcing
Improving inventory and resource tracking
Supply chain priorities
0% 20% 40% 60%
Monitor and eliminate bribery, fraud and other forms of
corruption
Go to market through new brands
Eliminate product complexity/phase out certain products
Promote worker safety and integrity in our supply chain
Empower workers and suppliers through training
Protect customer data and ensure secure transactions
Collaborate with companies, government agencies and
key stakeholders
Reduce waste by changing processes, product design,
and business models
Create corporate social responsibility programs
Ensure food and product safety
Use audits and third-party specialists to verify
compliance
Improve communications around ethics, integrity and
safety
Promote consumer health and wellness
Communicate clearly what our brand represents
What are companies doing – and what do
consumers think they should be doing?
% of consumers said they think it is where companies need to
focus to build trust
% of UAE execs who said it would be a top 5 tactic to build
trust
% of global execs who said it would be a top 5 tactic to build
trust
Our survey suggests two things – that worker
empowerment is seen as more important in the UAE than
it is globally and – more importantly – that there is a
significant gap between what companies say they are
doing and what consumers think they should be doing to
build consumer trust.
0% 10% 20% 30% 40%
Measurement and understanding of
omnichannel ROI
Agile, demand-driven supply chain
Full integration between front and back end
systems
Right pricing strategy across channels
Ability to drive digital innovation
Top five success factors
0% 10% 20% 30% 40%
Appropriate technology
Culture that embraces innovation and
collaboration
Full integration between front and back end
systems
Integrated distribution and logistics
capabilities
Right new business partners
Top five challenges
UAE Global
Becoming hyper customer-centric
UAE Global

4. Contactus:
kpmg.com/AE/en/industry/Consumer-and-Industrial-Markets/Pages/default.aspx
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accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No
one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
© 2016 KPMG Lower Gulf Limited, a limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
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Recent consumer industry-focused thought leadership:
Anurag Bajpai
Partner
Head of Retail
+971 50 553 6117
abajpai@kpmg.com
Anurag is recognized as a subject matter
expert in the consumer market sector,
having worked on a number of
engagements for international franchises –
both franchisees and franchisers – and
principals. Anurag has advised C-suites and
boards at a number of UAE-based family
businesses and leading global
multinationals.
Rahul Jain
Senior Manager
+971 4 3569710
rjain4@kpmg.com
Rahul is a Senior Manager in our Consumer
and Industrial Markets department. He has
significant retail, automotive, real estate,
trading and manufacturing experience,
having worked with a number of major UAE
companies.
An audit partner based out of our Abu
Dhabi office, Akil’s portfolio of clients
includes large local and multinational
consumer and industrial market clients in
the luxury retail, automotive and food and
beverage sectors. He advises C-suites and
client boards of directors.
Akil Vanthliwala
Partner
+971 56 683 3245
avanthliwala@kpmg.com