Snapshot: Trends in Small and Medium Consumer Goods

By now it’s clear the pandemic affected every industry in one way or another — and there’s no question consumer goods were hit especially hard. Supply chain disruptions caused worldwide issues, leaving businesses scrambling to reevaluate products, services, and revenue targets. Some sectors — cleaning supplies, anyone? — saw dramatic increases in sales, while others saw devastating drops in foot traffic and sales. Every business had to lean on flexibility and accelerate the move to digital.

Data from a survey conducted by the Harris Poll in the fifth edition of our “Small and Medium Business Trends Report” shows that growing businesses are building resilience in new ways. We dove deep into the fifth edition of the report’s numbers and found that growing businesses in the consumer goods space are pushing forward along several trends. Let’s take a look.

The world has undergone immense adversity in the last two years, and empathy has emerged as a way to combat the anxiety and suffering brought on by the pandemic; a leader’s ability tо соmmunісаtе and undеrѕtаnd the emotions of those on their team is key to mаіntаіnіng a trusting relationship.

Leaders in the consumer goods space have learned to put themselves in the mindsets of others to understand their feelings and stress. When asked about the personal characteristics that will be the most important for running a successful business over the next year, these leaders leaned toward the soft-skill side.

As consumers adapt to their own changing circumstances, consumer goods businesses must adapt and change alongside them. Small and medium consumer goods companies are resegmenting to capture evolving attitudes and behaviors.

Consumer goods businesses are investing in online infrastructures that value personalization and customer engagement; they are adapting and planning for a future that is not business as usual. In fact, 89% of consumer goods leaders surveyed say they’ve increased their online presence over the past year via channels like websites, social media, email, and online ads. In a move to be more customer-centric, 70% of these leaders say they plan to offer online shopping options permanently, and 56% have expanded the ways customers can reach them. Underscoring the need for data and security solutions, 40% have added cloud-based technologies to store and back up their company and customer data.

About two-thirds of growing-business leaders across all sectors report that community support (70%) and government support (70%) have been important to their company’s survival in the last year. For consumer goods, it’s a clear majority: 79% of leaders say that government support — like business stabilization packages, tax relief, easing regulations, and incentivizing customers — was at least somewhat important to their pandemic survival. Eighty-three percent say the same of community support, like donations, positive online reviews, and referrals.

Around 73% of small and midsize businesses in consumer goods applied for some type of financial support — federal aid, small business loans, regional aid, and/or private grants — during the pandemic, and many received it. This tactical aid, combined with the myriad ways communities came together to support businesses, kept the lights on for many consumer goods companies during the pandemic.

Companies continue to rely on community and customer support. Fifty-two percent of consumer goods businesses have added a CRM system in the last two years, signaling that these businesses want to continue to curate and engage with their communities.

As we start thinking about life post-pandemic, consumer goods companies that have had to shut down, lay off or furlough employees, or shrink budgets and salaries may have an opportunity to rebuild. Recreating a high-performing team and business starts with easing any hesitations and rebuilding lost trust.

Satisfied employees are the leading driver of your company’s performance, recruiting, and culture, and leaders are wisely focusing on them first. According to the individuals we surveyed, rebuilding that trust starts with empathy and open communication.

Fifty percent of these companies have accelerated their investment in technology, with several companies citing the new tools and platforms like Slack that help them stay connected, respond quickly to employee needs, and collaborate remotely.

Consumer goods leaders continue to find ways to adjust to our new normal. Their resilience and perseverance over the past two years will certainly serve them well in the years to come. But while many of them have successfully adapted, most of them plan to return to the office, at least in part.

Forty-five percent expect their employees will be working mostly in person long term, while 38% plan on a hybrid model involving both in-person and remote work. Just 12% plan to stay fully remote, and 5% have not yet finalized their plans.

Looking for more insights? Download the full “Small and Medium Business Trends Report” for a deeper look at the current perceptions of growing-business leaders and how they’ve changed.