In the age of the digital consumer, we can no longer refer to the “consumer products” industry – it is now the “consumer outcomes” industry. By 2020, the world’s population will grow to 7.7 billion people,1 and everyone on earth will have one thing in common – they will all be digital consumers.Billions of new consumers are joining the global middle class, bringing trillions in net-new spending power. Demand for water, natural resources, and key food categories may outstrip supply. Consumers are living longer, healthier, and differently. They are increasingly urban, hyper local, and “always on,” connected to one another and to the world around them in real time.
Despite decades of process improvement investments for efficiency and scale, complexity and cost continue to grow. “Personalization,” such as SKU proliferation, shorter product life cycles, and more channels, only challenges service delivery, increases inventory, and drives cost.