The consumer packaged goods (CPG) industry faces numerous challenges in today’s dynamic marketplace.
Here are 10 common issues that CPG companies in Mexico encounter, along with expert insights on how to tackle them:
1. Increased Competition
More brands and products are competing for limited shelf space and consumer attention.
- Solution: Focus on product differentiation and building emotional connections with customers through branding and marketing. Develop unique selling propositions and invest in targeted advertising to stand out from the crowd.
2. Changing Consumer Preferences
Consumers want greater transparency, sustainability, and health-conscious options.
- Solution: Adapt products and messaging to align with evolving preferences. Invest in R&D for product innovations and prioritize eco-friendly and health-conscious initiatives.
3. Rising Costs
Inflation, supply chain issues, and labor shortages are driving up costs.
- Solution: Pursue operational efficiencies, consolidate suppliers, and reevaluate pricing strategies. Implement cost-saving measures and explore alternative sourcing options to mitigate the impact of rising costs.
4. Omnichannel Complexity
Managing sales across brick-and-mortar, e-commerce, mobile, and social channels is challenging.
- Solution: Take an omnichannel approach with integrated systems and consistent branding across channels. Invest in technology and data analytics to optimize customer experiences and streamline operations.
5. Data Overload
The volume of data from various touchpoints and sources is overwhelming.
- Solution: Focus analytics on the metrics that matter most. Implement advanced data analytics tools and techniques to generate actionable consumer insights and drive decision-making.
6. Regulatory Pressures
Regulations around safety, labeling, privacy, and sustainability are proliferating.
- Solution: Maintain rigorous compliance programs and processes. Stay informed about regulatory changes and proactively adapt to new requirements.
7. Talent Shortages
It’s difficult to recruit and retain top talent, especially for digital roles.
- Solution: Offer competitive compensation, training, and career development opportunities. Foster a positive work culture and invest in employee engagement initiatives to attract and retain the best talent.
8. Supply Chain Disruptions
Global events, disasters, and trade issues frequently disrupt supply chains.
- Solution: Diversify sourcing, improve visibility, and build supply chain resilience. Implement risk management strategies and collaborate with suppliers to minimize disruptions.
9. Marketing Technology Sprawl
The Martech landscape is fragmented, with thousands of vendors and solutions.
- Solution: Take an integrated approach to martech, with clear business objectives guiding adoption. Evaluate and consolidate technology solutions to streamline marketing efforts and improve efficiency.
10. Sustainability Demands
Consumers and stakeholders want businesses to prioritize environmental sustainability.
- Solution: Set and work toward measurable sustainability goals, like reducing waste and carbon emissions. Communicate sustainability efforts to stakeholders and consumers to build trust and brand reputation.
In the face of these obstacles, CPG companies must stay agile and proactive. While challenges abound, so do opportunities to adapt to the evolving CPG landscape. Companies able to leverage data, optimize operations, understand consumers, and innovate boldly will thrive.
To get expert guidance on overcoming these CPG industry challenges, consider partnering with Delphus Consulting, which has deep expertise in supply chain, logistics, and strategy consulting for the food, beverage, and CPG industries across Latin America.
