FOCUS 4
WINNING IN EUROPE
How to succeed in the “new normal”
T
he current trading environment for CPG companies in Europe is challenging and this current reality is the ‘new normal’. Bold leadership and fundamental operating model
changes are required to drive agility, increase simplicity and enable focus on the pursuit of an aggressive growth agenda.
by MONA BITAR, NEIL DOBBINS & SIMON HARDEN
Market challenges in Europe are driving the need for radical change across the consumer goods industry. The fi nancial crisis and subsequent recession in Europe has created a challenging trading environment with slower growth, lowered consumer confi dence, consumers ‘trading down’ to economy offerings and increased penetration of own brand and local market products, all of which is putting pressure on margins. Even the historic growth engine of Eastern Europe has now levelled meaning that at a time when agitated shareholders are demanding improvements to both the top and bottom line, the opportunities for European CPGs to deliver are becoming ever more limited. The perpetual challenge of beating revenue growth expectations whilst at the same time delivering margin expansion becomes ever more critical.
© 2013 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member fi rm of the KPMG network of independent member fi rms affi liated with KPMG International Cooperative, a Swiss entity. All rights reserved.
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NEW NORMAL
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