Companies embrace consumer-centric strategies for future growth

Business growth plans now rely heavily on consumers and the offerings provided by the company.

Companies are increasingly focusing on meeting consumer needs and preferences to ensure future growth, according to Euromonitor International's Voice of the Industry Survey 2023.

The survey, conducted between August and November, revealed that over 40% of respondents identified enhancing consumer experience, fostering brand consistency, and adopting a consumer-centric approach as crucial developments in commerce.

Over the next five years, most businesses will prioritise 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,” the report noted.

Nearly three in five companies intend to refine their existing offerings to drive growth. Additionally, over half of the businesses surveyed are exploring opportunities to expand into new consumer segments or occasions, aiming to bolster market penetration and strengthen consumer loyalty.

For instance, TH Food Chain JSC's launch of TH True Milk Gold, Vietnam's first milk targeting older consumers, exemplifies this strategic approach to tap into emerging market needs.

To address the varied preferences of consumers, companies in 2023 also adopted a dual pricing strategy, offering both premium and lower-priced products. 

“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 report said.

Moreover, discounters and retail e-commerce are expected to gain market shares as consumers increasingly prioritise affordability and value. This reflects consumers' growing preference for cost-effective solutions and convenient shopping experiences. Conversely, traditional department stores may witness a decline in foot traffic as consumers seek alternative purchasing channels.

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Looking ahead, the impact of new technologies, particularly AI, is also expected to increase significantly over the next five years. 

“AI is the frontrunner, with 58% of respondents acknowledging its potential to shape businesses over the next half-decade,” the report noted.

AI's versatility is seen to present opportunities for businesses to revolutionise various aspects of their operations, from trend forecasting to quality control. 

Additionally, innovations like edge computing, autonomous vehicles, and RFID are anticipated to reshape the consumer experience by enabling personalised interactions and tailored services.