Efficiency has become a priority

A TOP of Mind survey has been conducted by CIES among 600 leading officers from the FMCG sectors of 54 countries about what they expect to be the issues of top priority in 2009. Manufacturers and retailers in the FMCG need to face the difficulties caused by the financial crisis world-wide. Consumers want lower prices than ever before and stocks prices are also falling.. Material and energy costs are rising. Adapting to the changes in economic climate and in consumer requirements is the top priority this year. Issues related to food safety have been one of the top priorities for two years. Last year’s number one, corporate responsibility has dropped to third place this year. Continuous monitoring of competitors was placed 9th in 2008, but has become the 4th top priority in 2009. Shrinking purchasing power has forced retail chains to reduce some of their prices to that of discounts. Relations between retailers and manufacturers are in 5th place, made tense by pressure from consumers and the increasing use of publicity. The growing assortment of private labels is not good news for manufacturers either. The survey also shows that the only way out of the price competition generated by private labels is quality and added value, which requires spending on communication and brand building. Supplying consumers with healthier products is less important for companies than it was in 2008. Marketing is regarded important even during recession, ranking 8th this year. Development of technology and of the supply chain ranks 9th. Demand for the development of local supply chains is growing.