Challenges for retail and consumer product (R&C) companies are many in today's business environment as a confluence of market forces have created an extremely difficult climate.
In mature markets, R&C sector companies are constrained in their ability to grow and maintain profit margins as a result of a slowing population growth and more discerning but less loyal consumers. There are also the immediate concerns of growing competitive pressures, an increase in the number of alternative sales channels, a blurring of roles between suppliers and retailers, and — particularly for consumer product manufacturers — a shift in the balance of power to the retailers.
As a consequence, the strategic focus of the sector is moving towards the emerging economies and expanding consumer markets of Asia and Central & Eastern Europe — China and India in particular — which offer new opportunities for growth through global sourcing, off-shoring and the development of modern retailing.
In addition, the retail & consumer industry is also experiencing heightened regulatory pressures. These imply greater accountability and accuracy in the reporting of financial results under IFRS, increased levels of corporate governance and Board involvement, stronger internal control documentation and a greater need for stronger risk management practices across the enterprise.
Retail & consumer challenges
How PricewaterhouseCoopers can help you
For R&C companies across the globe, PricewaterhouseCoopers offers a strong and reliable network of dedicated industry professionals. Our mission is to help our clients extract value from their operations, to develop a competitive advantage across the value chain, and to ensure that all corporate stakeholder expectations are recognised and met. Building brand trust, brand growth, and brand effectiveness is the focus of our practice.
