Retail and consumer packaged goods (CPG) companies in the U.S. are adapting to evolving consumer demands, new technologies, and increasing regulations, according to a recent research report by Information Services Group (ISG), a leading global technology research and advisory firm.
The 2024 ISG Provider Lens™ Retail & CPG Services report highlights the need for data-driven agility and strategies to ensure competitiveness in these industries. With the rise of e-commerce, customers now have more options, making customer-centric approaches crucial for retail and CPG companies. These businesses are partnering with service providers to plan and execute strategies aimed at optimizing customer experiences while managing costs effectively.
“Retail and consumer products companies are finding that comprehensive, customer-centric strategies are essential,” said Sunder Pillai, ISG Retail & CPG practice leader. “They are partnering with providers to plan and execute these strategies while controlling costs.”
The report also notes that the mix of online and physical stores continues to shift post-pandemic, requiring companies to gather more data for accurate demand prediction, inventory management, and personalized customer experiences. Many businesses are migrating to cloud-based solutions to scale efficiently and manage costs.
U.S. retail and CPG firms are investing in integrated inventory management and order fulfillment systems to provide seamless customer experiences across online and in-store channels. They are also implementing customer data platforms powered by AI to personalize offerings. With extended reality (XR) consultants, brands are enhancing digital experiences using augmented and virtual reality, allowing customers to virtually try on products.
As fragmented U.S. data privacy laws converge into stronger national regulations, companies are adopting data governance platforms to ensure compliance. Additionally, workforce management tools are being used to adjust to changing labor regulations, while sustainability measures like eco-friendly packaging are increasingly tracked and reported.
Automation is driving operational efficiency through robotic assistants and generative AI (GenAI), though companies remain focused on maintaining a human touch. Learning management systems are helping employees adapt to the new tech-driven environment.
“GenAI is part of every conversation about the future of retail,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Companies seek providers to help them determine how GenAI will ultimately benefit their business.”
Other trends noted in the report include the rise of robotic process automation (RPA) and the growing use of workforce management tools for optimized employee scheduling.
For more insights into the challenges U.S. retail and CPG companies face, including continuous business improvements and responsible sourcing, the ISG Provider Lens™ Focal Points briefing offers further guidance.
The 2024 ISG Provider Lens™ Retail & CPG Services report evaluates 33 providers across four key service areas: Business Transformation, Digital Innovation, Platform Modernization, and Managed Services. Notable leaders in all categories include Accenture, Capgemini, Cognizant, Deloitte, HCLTech, Infosys, KPMG, TCS, and Wipro. Several other providers received recognition as Rising Stars for their promising service portfolios.
In customer experience, HCLTech was named the ISG CX Star Performer for 2024, earning top satisfaction scores in ISG’s Voice of the Customer survey.
The full report is available for subscribers or one-time purchase.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series combines data-driven research with real-world insights from ISG’s advisory team. These reports help enterprises select the right sourcing partners while guiding ISG’s market recommendations for clients.
About ISG
ISG (Information Services Group) is a global technology research and advisory firm, serving over 900 clients, including more than 75 of the world’s top 100 companies. Specializing in digital transformation, AI, cloud services, and data analytics, ISG is a trusted partner for corporations and public sector organizations. Founded in 2006, ISG employs over 1,600 professionals worldwide. For more information, visit www.isg-one.com.
