Whilst Executives Navigate Uncertainties, They Remain Optimistic About Future Growth in Consumer Goods and Retail Sectors

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<li><a href="/en-gb/">United Kingdom</a></li> </ul> <ul class="locator-regions"> <li><h3>Global</h3></li> <li><a href="/global/">Headquarters</a></li> </ul> </div> <svg class="icon icon-close close-locator"> <use xmlns:xlink="http://www.w3.org/1999/xlink" xlink:href="/UI/assets/svg/symbol-defs.svg#icon-cross"></use> </svg> </div> </div> </section> </header> <main> <section class="Hero -thin-height"> <div class="Hero-item -no-marker black-overlay" style="background-image: url(/globalassets/articles/hero_newui_survey_executive-barometer.jpg)"> <div class="Hero-content -thin"> <h1 class="Hero-contentHeading Heading -default-hero -half-mb"> Whilst Executives Navigate Uncertainties, They Remain Optimistic About Future Growth in Consumer Goods and Retail Sectors </h1> <h3 class="Hero-contentSecondary Heading -tiny -static"> </h3> </div> </div> </section> <div class="Wrapper article-container"> <section class="MainContent"> <section class="content-container"> <div class="display-authors-short"> By <span>Brigitta Berger</span> </div> <hr /> </section> <div class="intro-content"> <p><strong><span data-contrast="none">MU Consumer Practice</span></strong><span data-contrast="none">, in collaboration with </span><strong><span data-contrast="none">IPSOS</span></strong><span data-contrast="none">, has conducted a comprehensive study focused on the market and leadership challenges within the consumer goods, and retail sectors. The survey targeted organisations within these sectors, uncovering a mix of optimism and caution as they navigate current economic uncertainties.</span><span data-ccp-props="{"201341983":2,"335559740":240}"> </span></p> </div> <p><strong><span data-contrast="none">Stockholm – June 4, 2024 – A new study by Ipsos, conducted on behalf of MU, reveals a prevailing optimism among executives in the consumer goods, and retail sectors, despite ongoing economic uncertainties. The study, which surveyed executives, highlights the dynamic landscape of these industries as they adapt to changing consumer behaviours and market conditions.</span></strong><span data-ccp-props="{"201341983":2,"335559740":240}"> </span></p> <p><span data-contrast="none">The study shows that leadership development is imperative for long-term success in these sectors.</span><span data-ccp-props="{"201341983":2,"335559740":240}"> </span><span data-contrast="none">But worryingly, the perceived preparedness of the leadership team to take advantage of opportunities is seen as moderate (mean 6,2 on a scale from 1-10). The top 5 key competencies for shaping the leaders of tomorrow, and bringing future success are Communication, Vision, Strategy, Agility and Leadership.</span><span data-ccp-props="{"201341983":2,"335559740":240}"> </span></p> <p><span data-contrast="none">The research identifies key opportunities driving growth, including product innovation (48%), diversification of product portfolio (38%), and a growing focus on sustainability practices (37%). However, executives also acknowledge significant challenges, such as price pressures (44%), geopolitical instability (42%), and the ongoing challenge of attracting and retaining top talent (40%). </span><span data-ccp-props="{"201341983":2,"335559740":240}"> </span></p> <p><span data-contrast="none">"<em>Despite these hurdles, businesses are responding with strategic initiatives, including investments in innovation, talent development, and exploring new markets</em>", noted Alexander Zeh, Research Director at Ipsos. "<em>A majority of respondents (75%) anticipate revenue growth in the coming year, indicating a cautiously optimistic outlook for the consumer and retail sectors.</em>"</span><span data-ccp-props="{"201341983":2,"335559740":240}"> </span></p> <p><span data-contrast="none">The study also underscores the crucial role of leadership in navigating these complex times. Communication, Vision, Strategy, Agility, and strong Leadership are identified as the top competencies needed to drive future success.</span><span data-ccp-props="{"201341983":2,"335559740":240}"> </span></p> <p><span data-contrast="none">Executives perceive that leadership effectiveness has improved in recent times, although they still desire further development to address all challenges. However, there is no clear idea of how to achieve this, and bridging this competency gap is vital for ensuring the long-term success of organisations within these sectors.</span><span data-ccp-props="{"201341983":2,"335559740":240}"> </span></p> <p style="text-align: center;"><span data-contrast="none">"</span><em>Following a record response rate, we have seen that the outlook in the Retail and Consumer sector is extremely positive and optimism levels are far better than expected. At the same time, we found out that leaders don’t feel prepared to leverage certain opportunities. T</em><span data-contrast="none"><em>here's a clear need to further develop these competencies within their organisations to fully capitalise on emerging opportunities,</em>" added Brigitta Berger, Partner & MU Consumer Practice Leader</span><span data-ccp-props="{"201341983":2,"335559740":240}"> </span></p> <p><span data-contrast="none">This study provides valuable insights for businesses seeking to thrive in the evolving consumer and retail landscape. By understanding the key challenges, opportunities, and leadership imperatives shaping these sectors, organisations can make informed decisions to drive sustainable growth in the years to come. </span><span data-ccp-props="{"201341983":2,"335559740":240}"> </span></p> <h2>Key Findings in a Nutshell </h2> <ul> <li data-leveltext="" data-font="Wingdings" data-listid="28" data-list-defn-props="{"335552541":1,"335559685":720,"335559991":360,"469769226":"Wingdings","469769242":[9642],"469777803":"left","469777804":"","469777815":"hybridMultilevel"}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1"><span data-contrast="none">Consumer goods, FMCG, and retail organisations are ready to seize growth and innovation opportunities.</span><span data-ccp-props="{"201341983":2,"335559740":240}"> </span></li> <li data-leveltext="" data-font="Wingdings" data-listid="28" data-list-defn-props="{"335552541":1,"335559685":720,"335559991":360,"469769226":"Wingdings","469769242":[9642],"469777803":"left","469777804":"","469777815":"hybridMultilevel"}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1"><span data-contrast="none">A strong optimism exists among executives regarding the future growth and success of their organisations. Specifically, 54% rated their optimism at level 7 or 8 on a scale from 1 to 10.</span><span data-ccp-props="{"201341983":2,"335559740":240}"> </span></li> <li data-leveltext="" data-font="Wingdings" data-listid="28" data-list-defn-props="{"335552541":1,"335559685":720,"335559991":360,"469769226":"Wingdings","469769242":[9642],"469777803":"left","469777804":"","469777815":"hybridMultilevel"}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1"><span data-contrast="none">Despite promising opportunities, these sectors face significant challenges that demand strategic action.</span><span data-ccp-props="{"201341983":2,"335559740":240}"> </span></li> <li data-leveltext="" data-font="Wingdings" data-listid="28" data-list-defn-props="{"335552541":1,"335559685":720,"335559991":360,"469769226":"Wingdings","469769242":[9642],"469777803":"left","469777804":"","469777815":"hybridMultilevel"}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1"><span data-contrast="none">Price increases (44%) and geopolitical uncertainties (42%) were highlighted as major challenges.</span><span data-ccp-props="{"201341983":2,"335559740":240}"> </span></li> <li data-leveltext="" data-font="Wingdings" data-listid="28" data-list-defn-props="{"335552541":1,"335559685":720,"335559991":360,"469769226":"Wingdings","469769242":[9642],"469777803":"left","469777804":"","469777815":"hybridMultilevel"}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1"><span data-contrast="none">Shortage of skilled workers and retaining top talent are also significant concerns, with 40% of respondents identifying these as major issues.</span><span data-ccp-props="{"201341983":2,"335559740":240}"> </span></li> <li data-leveltext="" data-font="Wingdings" data-listid="28" data-list-defn-props="{"335552541":1,"335559685":720,"335559991":360,"469769226":"Wingdings","469769242":[9642],"469777803":"left","469777804":"","469777815":"hybridMultilevel"}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1"><span data-contrast="none">A majority of respondents (75%) anticipate revenue growth, reflecting cautious optimism about the future.</span><span data-ccp-props="{"201341983":2,"335559740":240}"> </span></li> <li data-leveltext="" data-font="Wingdings" data-listid="28" data-list-defn-props="{"335552541":1,"335559685":720,"335559991":360,"469769226":"Wingdings","469769242":[9642],"469777803":"left","469777804":"","469777815":"hybridMultilevel"}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1"><span data-contrast="none">Strategic initiatives, like investing in innovation and talent, are key to navigating challenges and capitalise on opportunities.</span><span data-ccp-props="{"201341983":2,"335559740":240}"> </span></li> <li data-leveltext="" data-font="Wingdings" data-listid="28" data-list-defn-props="{"335552541":1,"335559685":720,"335559991":360,"469769226":"Wingdings","469769242":[9642],"469777803":"left","469777804":"","469777815":"hybridMultilevel"}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1"><span data-contrast="none">Organisations priorities are on reducing operating costs (26%), diversifying products and services (15%), and entering new markets (17%).</span><span data-ccp-props="{"201341983":2,"335559740":240}"> </span></li> </ul> <h2>Executive Summary and MU Expertise Insights </h2> <p><span data-contrast="none">In the dynamic landscape of consumer goods, FMCG, and retail sectors, opportunities for growth and innovation thrive. Companies are proactively seeking to meet evolving consumer demands through product innovation. Additionally, expanding product lines and venturing into new markets are recognised as vital strategies for sustainable growth.</span><span data-ccp-props="{"201341983":2,"335559740":240}"> </span></p> <p><span data-contrast="none">O</span><span data-contrast="none">rganisations generally feel prepared to capitalise on opportunities, but there's a recognised need to enhance preparedness, especially at the leadership level.</span><span data-ccp-props="{"201341983":0,"335559740":240}"> </span></p> <p><span data-contrast="none">Sustainability practices are gaining traction, driven by a growing emphasis on attracting eco-conscious consumers and meeting regulatory standards. These survey findings are strengthened by similar insights from <a href="/en-at/our-services/expert-practices/esg/">MU’s ESG Practice</a>. While 70% of leaders believe their company is ready for the sustainability transition, only 25% have had a strategy in place for over 3 years and 40% do not have a strategy in place at all.</span><span data-ccp-props="{"201341983":2,"335559740":240}"> </span></p> <p><span data-contrast="none">Embracing technological advancements is also deemed essential for enhancing operational efficiency and customer engagement.</span><span data-ccp-props="{"201341983":2,"335559740":240}"> </span></p> <p><span data-contrast="none">Yet, amid these opportunities, significant challenges loom. Rising costs put pressure on profit margins, while geopolitical uncertainties and trade disruptions add complexity. Talent retention remains a critical issue in the face of intensifying competition for skilled professionals.</span><span data-ccp-props="{"201341983":2,"335559740":240}"> </span></p> <p><span data-contrast="none">To navigate these challenges and capitalise on growth opportunities, organisations are taking a wide variety of strategic initiatives. Heavy investments in innovation aim to keep them ahead of the curve, while robust talent strategies seek to attract and retain top performers. But the shortage of workers remains one of the top 3 challenges.</span><span data-ccp-props="{"201341983":2,"335559740":240}"> </span></p> <p><span data-contrast="none">Optimism is present, with a majority of respondents anticipating revenue growth in the coming year. This positive outlook underscores the necessity for continued strategic investments and adaptations to thrive in a fiercely competitive market.</span><span data-ccp-props="{"201341983":2,"335559740":240}"> </span></p> <p><span data-contrast="none">To mitigate potential risks, companies are implementing proactive measures such as cost reduction, innovative go-to-market strategies, and market diversification.</span><span data-ccp-props="{"201341983":2,"335559740":240}"> </span></p> <p><span data-contrast="none">Moreover, the survey underscores a critical need to close the competency gap. The most relevant competencies are Communication, Leadership, Vision, Agility and Strategic Thinking – and there is a need for improvement especially in the last two mentioned. </span><span data-ccp-props="{"201341983":2,"335559740":240}"> </span></p> <p><span data-contrast="none">Executives perceive that leadership effectiveness has improved in recent times, although they still desire further development to address all challenges. However, there is no clear idea of how to achieve this, and bridging this competency gap is vital for ensuring the long-term success of organisations within these sectors.</span><span data-ccp-props="{"201341983":2,"335559740":240}"> </span></p> <p style="text-align: center;"><em><span data-contrast="none">"Leadership matters at every level—from Leadership Teams to CEOs and Boards. Their effectiveness shapes organisational success and individual fulfilment at work. While the cost of failure is extraordinary, the opportunities unlocked by effective leadership are immense. Success demands context-specific leadership tailored to the unique needs of each organisation—it's never 'one size fits all.'" — </span></em>Mieke Weijenberg, Global Practice Lead, MU Board & CEO Practice.<span data-ccp-props="{"201341983":2,"335559740":240}"> </span></p> <p><span data-ccp-props="{"201341983":2,"335559740":240}"> </span></p> <h5><a href="/globalassets/articles/mu-executive-barometer.pdf" target="_blank" rel="noopener"><strong><span data-contrast="none">Explore the full report for deeper insights into these dynamic sectors.</span></strong></a></h5> <p><span data-contrast="none">Here you can learn more about</span> <span data-contrast="none">our </span><a href="/en-at/our-services/leadership-advisory/"><span data-contrast="none">Leadership Development service</span></a><span data-contrast="none">, and learn more about our </span><a href="/en-at/our-services/expert-practices/board--ceo/"><span data-contrast="none">Board & CEO Practice</span></a><span data-contrast="none">, and our <a href="/en-at/our-services/expert-practices/esg/">ESG Practice</a>.</span><span data-ccp-props="{"201341983":2,"335559740":240}"> </span></p> <section class="content-container"> <hr /> <div class="tag-list-container"> </div> <div class="social-share"> <h3>Share this article</h3> <ul class="ShareList social-list -left"> <li class="ShareList-item"> <a target="_blank" href="https://www.facebook.com/dialog/share?app_id=1956258051284105&display=popup&href=http%3a%2f%2fwww.mercuriurval.com%2fen-at%2finstitute%2finsights%2fwhilst-executives-navigate-uncertainties-they-remain-optimistic-about-future-growth-in-consumer-goods-and-retail-sectors%2f"> <svg class="icon"> <use xmlns:xlink="http://www.w3.org/1999/xlink" xlink:href="/UI/assets/svg/symbol-defs.svg#icon-facebook"></use> </svg> </a> </li> <li class="ShareList-item"> <a target="_blank" 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Whilst Executives Navigate Uncertainties, They Remain Optimistic About Future Growth in Consumer Goods and Retail Sectors - Mercuri Urval