The 4 Trends Driving Change In The Consumer Products Industry

Mark Osborn

There are a variety of market forces converging to influence how consumer products companies consider everything from which markets to target for future growth opportunities, to how to Consumer Products Trends reach, engage and inspire consumers and how to ensure long-term sustainable availability of resources and materials required to ensure sufficient supply to meet consumer demand in an increasingly anytime, anywhere world.

The scale of this change is unprecedented, and it’s forcing consumer products companies to fundamentally reconsider how they organize and operate to meet consumers’ needs.

So, what are these trends driving so much change?  Let’s take a closer look, as well as consider steps consumer products companies are taking to address both the near-term challenges and longer-term opportunities associated with each.

Global demographic shifts: People are living differently

By 2030, 5 billion people – nearly two thirds of the global population  could be middle class. tweet-button

First, global consumer demographics are shifting fast.  Consumers are living closer together, longer and healthier, richer and with new and different lifestyles, preferences and values.  Urbanization, increasing life expectancy globally, increasing spending power from upwardly mobile middle and lower classes and evolving lifestyles all point to a new world of consumers that consumer products companies have to strive to serve in innovative and different ways in order to achieve near-term and long-term growth objectives.

Competition for scarce resources: Resources are increasingly in demand

884 million people lack access to fresh water.  By 2040 at least 3.5 billion people will run short of water.


Next, competition for resources is becoming increasingly acute.  Commodities, energy and other resources are increasingly constrained due to factors including global population growth, growing demand for key categories, and climate and weather variability.  These issues require consumer products companies to emphasize sustainability, corporate social responsibility, operational efficiency and supply chain resiliency.

Instability, volatility, and uncertainty: The new normal

The Top 5 risks with the highest likelihood are: Income disparity, fiscal imbalances, greenhouse gas, water supply and aging population.


Operating globally not only means facing increasing competition for scarce resources, it also means dealing with the added complexity of  economic volatility, political instability, unpredictable disruptions due to weather or natural disasters and ongoing global regulatory shifts.   Growth in the midst of this uncertainty means exploring contingencies, mitigating risks and promoting resiliency.

Technology adoption: An interconnected world

There are 5 billion mobile users worldwide.


Finally, consumers globally are increasingly online, mobile, social and interconnected with one another.  Enabling technologies are empowering consumers in new ways every day, putting the consumer in control of buying process.  Digital, mobile and social are all integral parts of the consumer path to purchase and consumers demand relevant, personal, and engaging experiences at every step along the way, challenging consumer products companies to leverage these same technologies to reach, engage and serve consumers via marketing, socializing and personalizing brand experiences

Staying ahead of the trends

Consumer products companies have big challenges ahead of them due to the mega-trends in the industry. The best companies will embrace the change and think in new and innovative ways to better reach, engage, and serve consumers because where there is challenge, there is also opportunity.

Learn more about how the trends are impacting the consumer products industry at the Consumer Goods Sales and Marketing Summit June 9-11th to discover and explore strategies focused on digital marketing, big data, mobile, trade promotions, consumer insights and much more! Follow the conversation on Twitter with #cgsm14!

For more information on the consumer products industry, explore the Enabling the Consumer-Driven Enterprise Virtual Event  for on-demand webcast replays and much more! 


About Mark Osborn

Mark Osborn is the Global Lead for Consumer Products Integrated Marketing and Communications with SAP.

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13 Scary Statistics On Employee Engagement [INFOGRAPHIC]

Jacob Shriar

There is a serious problem with the way we work.

Most employees are disengaged and not passionate about the work they do. This is costing companies a ton of money in lost productivity, absenteeism, and turnover. It’s also harmful to employees, because they’re more stressed out than ever.

The thing that bothers me the most about it, is that it’s all so easy to fix. I can’t figure out why managers aren’t more proactive about this. Besides the human element of caring for our employees, it’s costing them money, so they should care more about fixing it. Something as simple as saying thank you to your employees can have a huge effect on their engagement, not to mention it’s good for your level of happiness.

The infographic that we put together has some pretty shocking statistics in it, but there are a few common themes. Employees feel overworked, overwhelmed, and they don’t like what they do. Companies are noticing it, with 75% of them saying they can’t attract the right talent, and 83% of them feeling that their employer brand isn’t compelling. Companies that want to fix this need to be smart, and patient. This doesn’t happen overnight, but like I mentioned, it’s easy to do. Being patient might be the hardest thing for companies, and I understand how frustrating it can be not to see results right away, but it’s important that you invest in this, because the ROI of employee engagement is huge.

Here are 4 simple (and free) things you can do to get that passion back into employees. These are all based on research from Deloitte.

1.  Encourage side projects

Employees feel overworked and underappreciated, so as leaders, we need to stop overloading them to the point where they can’t handle the workload. Let them explore their own passions and interests, and work on side projects. Ideally, they wouldn’t have to be related to the company, but if you’re worried about them wasting time, you can set that boundary that it has to be related to the company. What this does, is give them autonomy, and let them improve on their skills (mastery), two of the biggest motivators for work.

Employees feel overworked and underappreciated, so as leaders, we need to stop overloading them to the point where they can’t handle the workload.

2.  Encourage workers to engage with customers

At Wistia, a video hosting company, they make everyone in the company do customer support during their onboarding, and they often rotate people into customer support. When I asked Chris, their CEO, why they do this, he mentioned to me that it’s so every single person in the company understands how their customers are using their product. What pains they’re having, what they like about it, it gets everyone on the same page. It keeps all employees in the loop, and can really motivate you to work when you’re talking directly with customers.

3.  Encourage workers to work cross-functionally

Both Apple and Google have created common areas in their offices, specifically and strategically located, so that different workers that don’t normally interact with each other can have a chance to chat.

This isn’t a coincidence. It’s meant for that collaborative learning, and building those relationships with your colleagues.

4.  Encourage networking in their industry

This is similar to number 2 on the list, but it’s important for employees to grow and learn more about what they do. It helps them build that passion for their industry. It’s important to go to networking events, and encourage your employees to participate in these things. Websites like Eventbrite or Meetup have lots of great resources, and most of the events on there are free.

13 Disturbing Facts About Employee Engagement [Infographic]

What do you do to increase employee engagement? Let me know your thoughts in the comments!

Did you like today’s post? If so you’ll love our frequent newsletter! Sign up here and receive The Switch and Shift Change Playbook, by Shawn Murphy, as our thanks to you!

This infographic was crafted with love by Officevibe, the employee survey tool that helps companies improve their corporate wellness, and have a better organizational culture.


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Supply Chain Fraud: The Threat from Within

Lindsey LaManna

Supply chain fraud – whether perpetrated by suppliers, subcontractors, employees, or some combination of those – can take many forms. Among the most common are:

  • Falsified labor
  • Inflated bills or expense accounts
  • Bribery and corruption
  • Phantom vendor accounts or invoices
  • Bid rigging
  • Grey markets (counterfeit or knockoff products)
  • Failure to meet specifications (resulting in substandard or dangerous goods)
  • Unauthorized disbursements

LSAP_Smart Supply Chains_graphics_briefook inside

Perhaps the most damaging sources of supply chain fraud are internal, especially collusion between an employee and a supplier. Such partnerships help fraudsters evade independent checks and other controls, enabling them to steal larger amounts. The median loss from fraud committed
by a single thief was US$80,000, according to the Association of Certified Fraud Examiners (ACFE).

Costs increase along with the number of perpetrators involved. Fraud involving two thieves had a median loss of US$200,000; fraud involving three people had a median loss of US$355,000; and fraud with four or more had a median loss of more than US$500,000, according to ACFE.

Build a culture to fight fraud

The most effective method to fight internal supply chain theft is to create a culture dedicated to fighting it. Here are a few ways to do it:

  • Make sure the board and C-level executives understand the critical nature of the supply chain and the risk of fraud throughout the procurement lifecycle.
  • Market the organization’s supply chain policies internally and among contractors.
  • Institute policies that prohibit conflicts of interest, and cross-check employee and supplier data to uncover potential conflicts.
  • Define the rules for accepting gifts from suppliers and insist that all gifts be documented.
  • Require two employees to sign off on any proposed changes to suppliers.
  • Watch for staff defections to suppliers, and pay close attention to any supplier that has recently poached an employee.

About Lindsey LaManna

Lindsey LaManna is Social and Reporting Manager for the Digitalist Magazine by SAP Global Marketing. Follow @LindseyLaManna on Twitter, on LinkedIn or Google+.


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Zhena’s Gypsy Tea Brews Sustainable Growth On Cloud ERP

David Trites

Recently I had the pleasure of hosting a podcast with Paula Muesse, COO and CFO of Zhena’s Gypsy Tea, a small, organic, fair-trade tea company based in California, and Ursula Ringham from SAP. We talked about some of the business challenges Zhena’s faces and how the company’s ERP solution helped spur growth and digital transformation.

Small but complex business

~ERP helped Zhena’s sustain growthZhena’s has grown from one person (Zhena Muzyka) selling hand-packed tea from a cart, into a thriving small business that puts quality, sustainability, and fair trade first. And although the company is small its business is complex.

For starters, tea isn’t grown in the United States, so Zhena’s has to maintain and import inventory from multiple warehouses around the world. Some of their tea blends have up to 14 ingredients, and each one has a different lead time. That makes demand-planning difficult. In addition, the FDA and US Customs require designated ingredients be traced and treated a certain way to comply with regulations.

Being organic and fair trade also makes things more complicated. Zhena’s has to pass an annual organic compliance audit for all products and processing facilities. And all products need to be traceable back to the farms where the tea was grown and picked to ensure the workers (mostly women) are paid fair wages.

Sustainable growth

Prior to implementing its new ERP system, Zhena’s was using a mix of tools like QuickBooks, Excel, and paper to manage the business. But to sustain growth and ensure future success, the company had to make some changes. Zhena’s needed an integrated software solution that could handle all facets of the business. It needed a tool that could help with cost control and profitability analysis and facilitate complex reporting and regulatory requirements.

The SAP Business ByDesign solution was the perfect choice. The cloud-based ERP solution reduced both business and IT costs, simplified processes from demand planning to accounting, and enabled mobile access and real-time reporting.

Check out the podcast to hear more about how Zhena’s successfully transformed its business by moving to SAP Business ByDesign.

 This article originally appeared on SAP Business Trends.

Building a successful company is hard work. SAP’s affordable solutions for small and midsize companies are designed to make it easier. Simple to install and use, SAP SME Solutions help you automate and integrate your business processes to give real-time, actionable insights. So you can make decisions on the spot. Find out how Run Simple can work for you. Visit


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Create A Culture That Doesn’t Fear Failure

JP George

A fear of failure could be holding back your business.

If the people on your team are worrying about being ridiculed or blamed for independent creativity or the downfall of an entire project, they are likely to hold back their ideas and stick to completing projects in the same way over and over again. In comparison, people who work in an office culture with no fear of failure feel free to bounce ideas around, which helps generate new practices, keep up with the times, push projects along, and can “wow” customers with innovation.

Changing the way your office works won’t happen overnight, but these five tips could begin to implement positive changes to help steer your team toward a working environment that is good for the staff and good for the business.

1. Recognize and reward

Employee recognition is the key to not fearing failure. When an employee or team member goes above and beyond; make sure they know that their hard work is appreciated and that an efficient system for providing employee recognition awards is in place. Even small things like suggesting a new way to carry out a particular process should be celebrated. If an employee, colleague, or team member has a suggestion that isn’t quite on-point, find the positive; for example, you might say, “You’re on the right lines, your idea will help speed the process up, but…” Always make sure to offer positive feedback first, then mention the thing that needs changing, and end with encouragement: “Once that’s ironed out, we can implement this — great work!”

2. Adopt a team mentality

Seems straightforward and fairly obvious for a first step, but so many companies do not know how to really generate a feeling of teamwork and inclusivity, and instead put up a front of “togetherness” while retaining the bad practices that divide a workforce. Start by calling a team meeting and setting some ground rules together. Yes, it’s a basic ice-breaking activity in almost all training sessions, but it also helps each person to display respect and hear the opinions of other members of the group. Suggest from the start that the team use “we” rather than individual pronouns when discussing projects, as it helps to dispel blame culture and reminds each person that they are all responsible for any successes and downfalls of the team.

3. Say “yes” more

When staff members and colleagues approach you with ideas and innovation, are you more likely to think “straying from the status quo is dangerous,” or are you willing to hear the person out and let their creative juices flow? Even if the first suggestion they offer is horrible, try not to say “no” outright or make the person feel bad for sharing. Try to find a way in which their idea can be incorporated, even if it has to be altered to fit the project. Saying “yes” to the inspiration and thoughts generated by staff and colleagues means that they will be likely to offer more ideas in the future, and without that openness, you might miss the next great innovation in your industry.

4. Blame less

Similarly, try to incorporate policies that encourage employee recognition rather than shame for sharing concepts. If failure does occur, do not publicly belittle the person deemed responsible, even in jest. This creates tension within the office or team and can make the person receiving the blame less likely to contribute in the future, and may even affect their personal well-being. Instead of blaming and shaming, discuss what went wrong as a group, and try to enforce the group mentality of “we could have done…” rather than “I/they/she/he did…”

5. Look for the positives

If, for any reason, your team does experience failure—and you should, otherwise you’re just not aiming high enough—try to see the positives, and discuss the issue as a group — not in cliques of us vs. them, but together discuss what the group could have done better. If a majority insist on blaming one or two people, move onto analyzing how communication channels could be opened up and ask members how inclusivity could be improved. After all, if only a few people are responsible for a project failing, the responsibility was obviously not being shared in an equal manner while the project was underway. There are positives to every situation, even if it is just the ability to improve your team dynamic.

The changes won’t happen immediately, but once the systems are in place and your staff, colleagues, and team members start to understand the goals within both the office and working environment as a whole, your employees’ creativity should start flowing and you will start hearing new suggestions regularly. Even if some don’t work well, remember to recognize employees and enjoy the rewards of your newly open and trusting workforce.

Want more employee engagement tips? See Boost Productivity With These 4 Brain Breaks.


About JP George

JP George grew up in a small town in Washington. After receiving a Master's degree in Public Relations, JP has worked in a variety of positions, from agencies to corporations all across the globe. Experience has made JP an expert in topics relating to leadership, talent management, and organizational business.

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