The report, entitled “Energizing Global Growth: Understanding the Changing Consumer,” concludes that companies able to capitalize on these changes with speed and agility could capture a portion of the trillions of dollars in growth that businesses globally are likely to see over the next few years as the result of changing consumer behaviors. Accenture estimates that just 20 sectors most associated with these changes are set to enjoy growth of US$2.4 trillion by 2016.
“Many companies expect to outgrow their national economic environments over the next few years,” said Mark Spelman, a managing director at Accenture. “To be able to achieve their expectations, companies should look not just to new markets, but also to how consumer behavior is changing and then put in place the capabilities necessary to capitalize on those changes.”
The report is based on four individual studies: an online survey of 10,000 consumers in 10 countries across five continents; a survey of 600 business executives in those same 10 countries; an assessment of the world’s top 3,000 listed companies by market capitalization and their revenue growth compared with the industry averages over various timeframes; and a macroeconomic analysis conducted in conjunction with Oxford Economics to assess the impact of changing consumer behavior.
Among the key changes in consumer behavior the report identified:
Accenture also found that while nearly three-quarters (73 percent) of business executives said that consumer behavior has changed markedly in the last three years, a similar proportion (74 percent) said they do not fully understand the consumer changes that are under way – and even more (80 percent) said they believe that their companies are not taking full advantage of the opportunities these changes present.
Recommendations for Capitalizing on Consumer Behavior Changes
The report makes recommendations on how companies can achieve growth and outperform competitors by effectively addressing changing consumer behavior, taking their lead from “growth leaders” in their industries:
“To achieve the necessary growth that leads to success in a slow-growth world while operating in the midst of widespread changes in consumer behavior, companies must strive to be become more agile – to connect the scale advantages of the large with the tailored approach of the small, the traditional benefits of the old and the cutting edge of the new,” Spelman said. “By achieving the right balance between sets of extremes, businesses can shape consumer change to their advantage – and help trigger higher levels of consumer expenditure, which, in turn, can energize global growth.”
Emerging Markets at the Center of Change
The report also shows that consumers in emerging markets have exhibited greater behavior change in the past few years than have consumers in developed markets. For example, consumers in emerging markets were at least twice as likely as those in mature markets to have increased their interaction with companies online over the past three years (62 percent vs. 25 percent) and to be increasingly considering the environmental and social impact of what they buy (64 percent vs. 32 percent).
At the same time, companies in emerging markets consider themselves better-prepared than those in developed markets to seize the opportunities of changing consumer behaviors. Executives in the emerging-market companies surveyed were more likely than those in developed-markets companies to say they completely understand how consumer behavior is changing (32 percent vs. 17 percent) – and also more likely to develop a response to these changes by investing more in consumer-facing activities such as advertising, marketing and retail channels (82 percent vs. 50 percent).
“Many of the opportunities generated by changing consumer behavior will replace, rather than add to, existing revenues,” Spelman said. “Proactive and agile companies look set to seize market share in slow-growth markets. Incumbent companies face a real risk of being displaced by these new competitive threats unless they focus on enhancing their understanding of consumer behavior.”
More information on the report – “Energizing Global Growth: Understanding the Changing Consumer” – can be found at www.accenture.com/globalgrowth.
Accenture is a global management consulting, technology services and outsourcing company, with approximately 259,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$27.9 billion for the fiscal year ended Aug. 31, 2012. Its home page is www.accenture.com.