This article is drawn from a report on Retail Analysis. It covers the short to medium term global outlook from manufacturers and suppliers. Ray Leung answers some of our clients most important questions; how they can improve, what’s happening in other countries and how they are compare to their peers.
Our clients are keen to understand the outlook across a number of business activities.
Survey respondents and executive summary
We surveyed 126 clients of various sizes, representing a broad range of categories from around the world.
Changes to the customer base and messaging
On average, 63% of companies expect their customer base to concentrate, this is higher in developing markets than developed ones.
Also, globally above the line (ATL) and below the line (BTL) spending is expected to decline. Only 22% of respondents expect to maintain spending on messaging.
Brand share and equity growth is uncertain
A large proportion of companies are uncertain if they will see brand share and equity growth in the next six to twelve months. This has implications for suppliers.
New product development (NPD)
There is global uncertainty around new product development. 46% of companies globally expect to maintain their NPD pipeline for the next six to twelve months with small and medium companies more positive about their NPD pipeline.
Distribution gains and range rationalisation
There is broad uncertainty about distribution gains across all company sizes and active rationalisation of range is expected globally.
Supply chains and sourcing raw materials
The outlook for sourcing raw materials and global supply chain resilience are both broadly positive. That said, 30% of large companies think they will have some challenges in sourcing raw materials in the next six to twelve months. However, 70% of small companies think their supply chains are resilient to spikes in demand.
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