The global recession and falling demand have hit the consumer goods sector harder than other industries. Except in China and a handful of smaller economies, retail sales fell dramatically in 2009 throughout the Americas, Europe and most of Asia. According to an Economist Intelligence Unit survey of the sales, marketing and customer service practices of consumer goods companies, respondents cite the global economic downturn as the biggest issue facing their industry.
The economy is one of several factors—including changing consumer needs, emerging new competitors and evolving requirements among retailers and distributors—that is beyond the control of consumer goods companies. Despite these challenges, survey respondents say they have strengthened customer relationships during the past year. They also say they are more engaged in developing products and services collaboratively with retailers and distributors.
Consumer goods manufacturers need to satisfy two tiers of customers in order to succeed. The fi rst is the retailer or product distributor; the second is the consumer who ultimately buys the product from the retailer or distributor. Manufacturers have to play to both audiences successfully. The majority of survey respondents say they are doing better than ever managing the fi rst relationship, ie, with retailers and distributors. The second one, with consumers, is more problematic.
