When uncertainty is the only constant, how can you plan for the future?

Australian consumer products companies are working hard on their plans for the future – but many are struggling to find the best way to move forward in the face of uncertainty. That’s my take after a fascinating week talking about the future consumer with some of the nation’s largest organisations in Sydney across consumer products, real estate, health and insurance.

 Envisioning the future

The week started with a 1 day ideation session, where we challenged local leaders to consider how 150 drivers of change will influence the nature of future consumer behaviour – and the ecosystems that might be required to deliver them.

All three groups at the event ended up chasing health and wellbeing from different angles. Some explored the potential for nutrient-rich, bespoke food tailored to an individual’s needs based on real-time biometric data. Others tore down the traditional norms of the corporate office, developing a cool concept where city buildings have a happiness (not an environmental) rating. This team mooted a future where connected buildings using feedback from neural sensors will optimise worker wellbeing and performance. Will we one day see ‘productivity ghettos’ at the heart of Australia’s CBDs?

Getting people out of their comfort zones

I spent the rest of the week meeting with individual companies to discuss how future trends will transform their markets – discussions I’ve had with consumer products leaders from around the world.

In my experience, these can be tough conversations that push people outside their comfort zones. In Australia, I’ve been struck by the level of appetite to embrace new ideas and new ways of thinking. No one is burying their head in the sand. Everyone I spoke to recognises the urgent need for change and is planning for a very different future – one where B2B organisations have direct relationships with their customers.

When it comes to figuring out what that future will look like, people are very clear on the importance of having a brand that stands for something. Australian executives get the power of purpose. But they’re less certain about who their future consumers will be.

Preparing for an unknowable future

This is entirely understandable. No one can tell you what the consumer goods market will look like in the next five – let alone the next 10 – years. New technologies, innovative business models and unexpected sources of competition are disrupting the consumer goods industry at a pace that can feel bewildering.

But, in my experience, the harder it becomes to imagine the future, the more advantage there is for those able to develop a long-term vision. And this is not as impossible as it sounds. You don’t have to predict exactly what’s coming. The value is in stepping out of the flow to see the direction of travel and adapt accordingly.

To able to flex whenever disruption hits, Australia’s consumer products companies need an immediate focus on three areas: 

1.  Fluidity – You don’t know who tomorrow’s consumers will be or where or how they’ll access your products. That means, fluidity is your recipe for success. Future winners won’t be the most efficient – they’ll be the most agile. Identify all the things that are stopping your organisation from responding quickly and make fixing them a priority. One current barrier may be your talent strategy. If you’re not hiring for and rewarding adaptive capabilities – start now.  Your future workforce must be happy to flex and comfortable with change. 
2.  Ecosystem – Few FMCG companies will be able to deliver to future consumers on their own. Understand where you can add value, where you can’t, and then fill the gaps by partnering with other organisations. Each member of your ecosystem should focus on what they can uniquely do – and nothing else. In particular, this means you don’t need to become a technology company. Yes, technology will underpin your business model. But there’s a massive shortage of tech talent – and no one is interested in moving into FMCG. Instead, leverage the scale and talent in technology companies to get the digital infrastructure you need in a flexible, subscription-based model.
3.  Data – This is one area where you do need new talent. Invest in people who can interpret your data, so you can truly understand the consumer and segment markets in a different way.

Be bold

I’m fascinated by the paradoxes in Australia. You have a large, futuristic segment of health and fitness-oriented consumers demanding authentic, environmentally friendly products – in a population with high levels of obesity. You have highly conservative regulation – in a culture that cherishes the outliers.

I think this creates a situation where there’s a danger local companies are clinging to a false sense of security about the speed of the coming change. It’s tempting to buy into the conservatism of some Australian consumers and believe change only needs to linear.

I guarantee it will be exponential.

Make no mistake, the consumer of tomorrow will be passionate and demanding. They aren’t going to accept products that are just good enough. If you try to be an everyman brand, you will end up being bland.

It’s time to start building the capabilities and connections that will allow you to walk boldly into – and adapt rapidly to – an unknown future.

For more information on EY’s FutureConsumer.Now program – click here

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