Durable goods

Navigating changing consumer preferences and sentiments as well as corresponding shifts in the channel and distribution landscape requires consumer-centric strategies and future-proof business models.

Durable goods companies today face changing consumer preferences around both the product and consumer journey. At the same time, consumer budgets are tight in an environment of elevated uncertainty and inflation.

In the last decade, substantial parts of the consumer journey have moved online – though for several industries the physical touchpoint remains highly relevant. Changing consumer preferences also affect retail, where concentration has increased and internationalized. Ecommerce players have captured significant market share and specialized channels are under pressure. As a result, many industry players have tried to build and strengthen their D2C approach to move closer to the consumer.

On the product side, there is mounting pressure for faster innovation to keep pace with shorter product lifecycles. In addition, the trend toward sustainability and circular economy models offers new opportunities and altered business paradigms. Companies must align offerings and value propositions with ever-changing sustainability preferences. Our experts provide solid implementation plans alongside monetization approaches for sustainable products.

A sound and comprehensive go-to-market approach is key to reach consumers in an efficient and effective way. Here it is crucial to define core structures, processes, and guardrails on where and how to focus and steer the business across countries, channels, and customers. We help our clients develop and implement these models across their organizations to tackle new business opportunities and deal with the adjusted distribution landscape.

Last but not least, establishing Revenue Growth Management (RGM) is a key enabler to build a future-proof business model. However, many durable companies are still lagging behind. Whereas RGM has successfully been established in most major FMCG companies, the footprint in consumer durables is still relatively weak. We work with consumer durables companies to establish a holistic view of the key growth levers (such as consumer pricing, promotion management, trade terms, in-store excellence, marketing spend etc.), based on a solid analytical backing. This helps to sustainably improve the top and bottom line.

Future-proof also implies reflecting the latest technological advancements offering new opportunities along the value chain – leave it too late and you won’t be able to catch up. We help durable goods companies use advanced analytics, tools, and technologies to enhance their business models and go-to-market strategies.