I caught up on some reading last weekend, which included JWT.com’s 100 things to watch in 2012. I pulled out a few for consumer product companies.
Smaller SKU’s
- What to watch: companies are rolling out with smaller packages to reach lower price points for price-sensitive consumers.
- What this means for consumer product companies: increased costs due to proliferating SKU’s and possibly, smaller more frequent shipments, raising shipping costs.
Rising Food Prices
- What to watch: food prices will continue to rise, outpacing inflation due to wacky weather worldwide.
- What this means for consumer product companies: more costs not just in actual raw materials, but possibly more personnel time to find and maintain several reliable suppliers.
Unwrapping the Process
- What to watch: companies are making their manufacturing operations more visible, making it easier for consumers to see how the products they purchase are made.
- What this means for consumer product companies: increased marketing costs to open the curtain
In summary, more costs that companies will have to absorb, unless they can pass those costs along to consumers, which is difficult to do, or cut costs elsewhere, which is also difficult to do.













