High-growth markets will drive long-term success for Canadian companies
TORONTO, Feb. 14, 2012 /CNW/ - More than two-thirds of financial
executives say they are increasing their budgets to support new product
development in preparation for market expansion, according to KPMG's
annual Consumer CFO Survey. Over 80 percent of all respondents believe
marketing to new middle class consumers in emerging high-growth markets
will drive long-term success.
"The overall goal among respondents is clearly one of growth," says Willy Kruh, KPMG, Global Head of Consumer Markets. "The strategies companies
pursue depends on the maturity of a given market. We're seeing that in
emerging markets, product innovation has the most potential as a growth
strategy. Most importantly, as many of our respondents have remarked,
it's always critical to determine how well an opportunity aligns with a
company's core competencies and if there's willingness to wait for the
KPMG's 2012 Consumer CFO Survey: Turning Global Risk into Opportunity surveyed 350 financial executives (34 from Canada) in the retail,
consumer goods manufacturing and luxury goods sectors. Key survey
Canada and the US expected to offer greatest growth potential in 2012
Supply chain efficiencies a priority for Canadian consumer companies
Leveraging the power of digital for consumer engagement a top trend
Sustainable practices evolve as a core business issue around the world
The KPMG Perspective
In our own Backyard
Even with growth projected to be slower in the US and Canada, 46 percent
of all respondents believe the two markets provide the greatest
opportunity, with China and Brazil ranking second and third,
"Surprisingly, globally, with the bulk of new consumers coming from
countries in Asia, and notwithstanding the fragile consumer confidence
in developed markets, the majority of respondents see North America as
a great growth opportunity, at least in the short-term," says Kruh.
"For Canadian companies, domestic growth will come by focusing on
consumer behaviour and price sensitivity and more importantly on
differentiating through innovation and new product development."
Supply chain management is the focus for Canadian companies this year
with over 50 percent of Canadian respondents saying they will work to
increase efficiencies to meet the product needs of emerging markets.
At home, Canadian consumer companies will place a higher priority (59
percent) on expanding sales activities for existing product lines to
meet the needs of consumers.
"The growth picture for consumer companies is quite divergent and this
year will be telltale for them," commented Kruh. "Those that invest
wisely between home and abroad, uphold their commitment to product and
service localization, and keep the consumer at the core of their
business should see their efforts rewarded this year."
Nearly 90 percent of Canadian respondents believe a solid digital
strategy is critical to delivering an integrated consumer engagement
program. This year, over a third of all respondents will use mobile
commerce to maximize sales followed closely by customer relationship
management (CRM) systems. The same CFOs expect their revenues to be
lower this year, but remain confident the investments will position
them for long-term success at home and abroad.
"Technology has changed the way brands and consumers interact," says
Kruh. "It's critical to be present in the conversation, leverage
technology to meet consumers' needs, and deliver content that's
relevant and meaningful."
Sustainability at the Core
Sustainability continues a steady climb up the corporate agenda with
nearly three quarters of global respondents seeing it as a tool for
competitive positioning, fostering innovation and strengthening brand
"Our study shows over half of all respondents see sustainability as more
than just about being a good corporate citizen, it's also having a
positive impact on their operating costs," states Kruh. "They recognize
the importance of the investment and are seeing the rewards across many
functional areas of their businesses."
About the Survey
Turning Global Risk into Opportunity is based in part on results from a survey of 350 businesses worldwide,
carried out in November 2011. The survey focused on senior finance
professionals in retail, consumer goods manufacturing and luxury goods
companies. More than 40% of respondents were chief financial officers.
Almost all companies in the survey have global revenues in excess of
US$500m annually and almost two-thirds of the total respondents have
revenues in excess of US$1bn. Respondents were spread evenly around key
regions of the world, including North America, Latin America,
Asia-Pacific, Europe, and the Middle East and Africa.
KPMG LLP, an Audit, Tax and Advisory firm (kpmg.ca) and a Canadian limited liability partnership established under the
laws of Ontario, is the Canadian member firm of KPMG International
Cooperative ("KPMG International"). KPMG member firms around the world
have 145,000 professionals, in 152 countries.
The independent member firms of the KPMG network are affiliated with
KPMG International, a Swiss entity. Each KPMG firm is a legally
distinct and separate entity, and describes itself as such.
SOURCE KPMG LLP
For further information:
Manager, Media Relations
KPMG in Canada