The challenges for the consumer goods market
The effects of the coronavirus pandemic have impacted the German consumer goods market in various ways. While the market segments for small electrical appliances, food and interior design, for example, recorded strong growth in 2021, areas such as clothing and jewelry can be seen as the losers of the switch to working from home. Many companies have also revised their online presence and expanded their e-commerce activities during this period in order to adapt to this changed market environment. Nevertheless, there is still considerable potential for investment in innovation, sustainability and resilience in the consumer goods market. At present, the sector's share of innovation expenditure in total sales is still far removed from the cross-sector leaders in the electrical, automotive and mechanical engineering industries. The fundamental change in customer segments due to demographic change will also pose a challenge for the consumer goods market in the future, requiring resilient and far-sighted management action. The speakers from the consumer goods market at the 30th Munich Management Colloquium will talk about how companies can react to these transformation processes and successfully position their company for the future in the long term.
The Perfumery Douglas GmbH is one of the best-known perfumery chains in Germany. The company has relied on a strong e-commerce strategy in recent years and was thus able to continuously increase sales in its own online store to almost 1.2 billion euros in the 2020/21 financial year. Together with the significant increase in demand in the stationary business, the company's total sales are once again noticeably above the level before the start of the coronavirus pandemic. Douglas is also investing heavily in the innovative further development of its business areas. With a "Fragrance Finder" based on artificial intelligence, customers will be able to enjoy a new personalized consulting experience when choosing perfumes and other fragrances. New opportunities for customer interaction are also being created in the company's newly opened flagship store through the use of modern technologies such as augmented reality.
The PUMA SE from Herzogenaurach is one of the four largest sporting goods manufacturers in the world. The company was able to robustly cushion the effects of the coronavirus pandemic and even increase its sales in 2021 significantly above the pre-crisis level of 2019. The company is also investing in sustainability and was able to significantly reduce its CO2 emissions despite its growth trajectory. For example, Puma is trying to increase the proportion of recycled polyester in production to 75% by 2025 and manufacture nine out of ten products with more sustainable materials. The RE:SUEDE experiment, for example, is developing a biodegradable shoe to help combat the generation of waste in the fashion industry. PUMA SE is also testing the possibilities of digitalization in the fashion industry. The "Black Station" experience at New York Fashion Week 2022 will combine blockchain innovations such as NFTs with physical sneakers, giving customers a new product experience.
Also with the Underberg AG has been driving forward a modernization strategy in recent years in order to position the company for the challenges of today's spirits market. To this end, an in-house team has been set up for social media activities relating to the Underberg brand and the product's market presence has been revamped. In the spirit of sustainability, the company switched to a plastic-free packaging box based on 100% recyclable cardboard made from FSC-certified material and modernized its product branding to mark its 175th anniversary. Furthermore, the e-commerce area was expanded and the internationalization of the company in key markets such as the USA was driven forward.
The Munich Management Colloquium in March 2023 offers the opportunity to learn solutions from the leading figures in the industry and to make a decisive contribution to Germany as a business location through the change processes presented and the associated innovations.
Among others, the following speakers from the consumer goods market will give talks on the necessary change processes:
- Tina Müller, CEO and Chairwoman of the Management Board, Parfümerie Douglas GmbH
- Arne Freundt, CCO, PUMA SE
- Dr. Hubertine Underberg-Ruder, President of the Board, Underberg AG