In 2023, companies were putting a brighter spotlight on consumers’ needs and wants, in order to compete effectively and grow in the future. Voice of the Industry Survey 2023 (fielded August to November 2023) revealed that over 40% of the respondents identified enhancing consumer experience, fostering consistency in brand interactions, and becoming consumer-centric as pivotal commerce-specific developments.
Business growth plans hinge on consumers and company offerings
For most businesses, the top priorities in the next five years are increasing profitability, market share and revenue. To achieve these goals, companies are anchoring their growth plans on two pivotal elements of corporate strategy – consumers and product portfolio.
As evidenced by the Voice of the Industry survey, nearly three in five businesses plan to grow by refining their existing product or service portfolio. Furthermore, over half of companies are keen to venture into new consumer segments or occasions with their current offerings, aiming to maximise market penetration and fortify their consumer base. For instance, TH Food Chain JSC launched TH True Milk Gold which is Vietnam’s first milk for older people. This launch was done to target the rapidly ageing population. These strategic focal points are instrumental in charting a sustainable trajectory for businesses, facilitating robust evaluation mechanisms to gauge success over the short and long term.
Diverse consumer needs impact pricing and retail channel performance
In 2023, companies employed a dual pricing strategy, offering both premium- and lower-priced products to meet diverse preferences. This strategic approach catered to quality-seeking consumers willing to pay a premium, while also addressing the needs of those seeking affordable solutions amidst the challenges of a rising cost of living and income constraints. The dualistic pricing strategy has emerged as a nuanced response by companies to the evolving landscape of consumer expectations.
65.2% of respondents agreed that discounters and retail e-commerce will gain share when asked about retail performance expectation in 2023
Source: Euromonitor Voice of the Consumer: Lifestyles Survey, fielded January to February 2023 (n=782)
As a result, it is expected that retail channels like discounters, retail e-commerce and online marketplaces will gain share. These channels fulfil consumers’ desire for cost effective solutions and ease of shopping. In contrast, department stores are likely to lose share as they witness dwindling footfall.
Technological developments enhance businesses’ offerings
AI is the frontrunner, with 58% of respondents acknowledging its potential to shape businesses over the next half-decade
Source: Euromonitor Voice of the Industry Survey, fielded August to November 2023 (n=833)
This consensus underscores AI’s versatility and its ability to revolutionise various aspects of the value chain, offering businesses unprecedented leverage. For example, in 2023, Koton, a well-established Turkish multinational apparel company, collaborated with Turkish influencer and digital creator, Rachel Araz, to create its AI-themed Rachel Araz x Koton: AI Collection. Moreover, AI is expected to further shape the fashion sector in areas such as trend forecasting, automated design tools, quality control and intelligent textiles.
While AI takes the spotlight, other innovations, like edge computing, autonomous vehicles and radio-frequency identification (RFID), are impactful too. These technological advancements are poised to profoundly reshape the consumer experience throughout the entire purchasing journey through higher focus on personalisation, iterative tailoring to suit the ever-changing consumer behaviour.
Consumer centric strategies and innovation needed for future growth
In 2023, businesses strategically prioritised consumer-centric approaches to drive future competitiveness and growth, as highlighted by survey insights. In future, companies will anchor their growth plans on consumers and product offerings, leveraging insights to refine existing portfolios and tap into new market segments. Innovation and technology will continue to play a crucial role in corporate strategies. These trends highlight the evolving consumer landscape and the need for businesses to adapt and innovate.
For more insights from professionals across the world, read our report, Voice of the Industry: Consumer Insights.