Constant pressures from digital developments and disruptions have impacted the nature of the market in recent years. Today’s customers are shopping anywhere, anytime; and they expect retailers to keep up.
The digital world has broken through not only communication barriers, but geographical ones also. This results in fiercer competition than ever before, which requires companies to adapt in order to retain market share.
KPMG’s Retail & Consumer Markets develops deep industry insights from our global network of industry-focused professionals and assists in boosting competitiveness in three key areas:
- Strategy & management
- Consumer markets
- Disruption
The shifts in consumer preferences, the ever growing sphere of e-commerce and rapidly evolving market expectations all together represent challenges that must be answered on the strategy level. As a response to these challenges an ever increasing number of companies turn to new business lines, new business models and horizontal expansions. However, it is important to realize that these new business models require new competencies and market insights.
KPMG offers the following main services to assist growth:
- Identification of strategic growth areas
- Market expansion and/or entry
- Development of suboptimal revenue channels
- Business planning
- Competitor analysis
- Change management
For an increasing number of companies adding new business lines does not result in additional revenue: business can also be developed by optimizing current revenue channels. By reviewing the efficiency of current operations both transparency and cost reductions may be achieved.
KPMG offers tailored services for addressing and achieving operational excellence:
- Process due diligence
- Identification of duplications and cost saving opportunities
- Introducing global best practices, implementation
- Operational due diligence
Today’s consumers shop anywhere, anytime. Companies that use outdated segmentation practices that define broad consumer groups (or do not segment at all) are facing increasing challenges on the dynamically shifting markets of today mixed with the continuous expansion of the online sphere. The expansion of the online sphere has increased the reach of many companies to target a larger number of consumers, however it has also
made the competition fiercer.
KPMG offers its in-house consumer segmentation
and consumer persona development services readily available for deployment:
- Local and international market insights into
consumer trends - Identification of critical consumer segments
and personas - Development of consumer loyalty strategies
- Omni business model development
- Customer experience assessment
New generations of consumers are emerging ever faster: while those belonging to Generation X were born across the span of approximately 20 years, those of Generation Y only span across 13 years. And even since Generation Y, two new consumer generations have entered markets. The driving force behind the ever faster generational shifts is technology, which greatly impacts the expectations of consumers towards both products and services. Whilst Generation X constitutes the largest share of purchasing power in Hungary today, this is ever decreasing as digital native generations take over. Aligning business goals with generations is no longer avant-garde, as they already constitute the key consumers in certain industries. Being unprepared for consumers of a digital generation carries great risks; a single negative review on social media and the reputation of the brand and company can shift dramatically for many.
Dynamically shifting market expectations, emergence of new consumer generations and the expansion of the online sphere all put additional pressure on companies to transform. The main challenge of a digital transformation is not transitioning to digital from analogue or offline, but rather the organizational changes required to be successful. Additionally, customer experience can also be deeply impacted by botched attempts at digital transformation. In many cases, digital strategies do not take account of all the changes a transformation brings with it and result in internal pressure to transform. This is despite the greatest advantages of a digital transformation: new opportunities to capitalize on available resources within the company.
KPMG is a global leader in digital services that include the following offerings:
- Digital strategy
- Stakeholder mapping
- Digital maturity assessment
- Impact assessment for digital transformation
- Change management
Rapidly evolving digital solutions and consumer expectations have induces companies to take on innovation at the boardroom level. Corporate innovation is a straightforward concept, however actually harvesting innovative talent within the organization can be a huge challenge due to the number of individuals involved. KPMG has developed a unique solution for addressing this issue: the KPMG Innovation Factory. Innovation Factory allows for the collection and organization of innovation ideas across an organization, regardless of its size; after which KPMG Innovation Factory can be used to select ideas for implementation.
