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Global conflict, inflation, supply chain problems: Can consumer companies still grow?

On Point

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Edited by Seth Stevenson
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Winning over consumers

In the news

•

Curbs = your enthusiasm. Retailers keen to retain shoppers during a potential economic slowdown are leaning hard into improving the consumer experience, and curbside pickup appears to be one pandemic consumer trend that’s sticking around. In the US, 33% of adults younger than 50 who started using curbside pickup during the pandemic plan to keep up the habit, according to a recent study. People with children find it a particularly convenient shopping method since there’s no need to wrestle kids in and out of car seats. [WaPo]

•

Souring on stuff. Consumers clamored for everything from cooking supplies to gardening gear as online shopping surged for the first two years of the COVID-19 pandemic. But these days, as inflation climbs, shoppers are spending more on services and less on goods, leaving retailers caught off guard. In the UK, purchases of household goods have dropped below 2019 levels. Some retailers are getting stuck with excess inventory, while some businesses that provide services are suddenly scrambling to meet increased demand. [FT]

Companies that are able to move into new geographies successfully are 22% more likely to achieve above-market growth.

On McKinsey.com

•

Growth is elusive. Very few consumer companies can sustain rapid growth over long time periods. Fewer still can do it while maintaining or increasing earnings. From 2009 to 2019, consumer companies grew an average of 3%, while the largest companies grew at only 2.4% over the same period, find McKinsey senior partners Simon Land, Duncan Miller, and colleagues. However, brands that can grow quickly and profitably offer shareholder returns more than double those of their peers.

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The growth triathlon. McKinsey sifted through the data to figure out what really drives success in the consumer sector and discovered that pursuing a single winning strategy simply isn’t enough. Instead, companies must focus on three proven pathways to growth in the consumer sector, much like a champion triathlete who trains to be a great swimmer, cyclist, and runner. See our analysis of what drives consumer sector growth, including examples of companies that are winning the growth triathlon.

Three ways to ignite growth

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by "McKinsey On Point" <publishing@email.mckinsey.com> - 10:07 - 11 Sep 2022

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Global conflict, inflation, supply chain problems: Can consumer companies still grow?

Winning over consumers

In the news

Companies that are able to move into new geographies successfully are 22% more likely to achieve above-market growth.

On McKinsey.com

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Adobe MAX 2022 Lineup Revealed!

A leader’s guide to finding growth opportunities

Global conflict, inflation, supply chain problems: Can consumer companies still grow?

Winning over consumers

In the news

Companies that are able to move into new geographies successfully are 22% more likely to achieve above-market growth.﻿

On McKinsey.com﻿

Companies that are able to move into new geographies successfully are 22% more likely to achieve above-market growth.

On McKinsey.com