Trust and transparency, in various forms, are important goals for consumer goods companies as they move into 2022, according to an annual survey by Deloitte.
The “Deloitte 2022 Consumer Products Outlook” study of 100 senior executives, in food and other consumer-goods companies, showed that nine in ten say “the industry must work harder to retain trust.” The leading reasons why consumer products companies lose trust include: “brands are not open and transparent” (named by 90% of respondents), “brands don’t meet consumer environmental, social and governance expectations” (chosen by 84%), “brands engage in ‘greenwashing,’” or phony environmental claims (82%).
Transparency was seen as a key element in building consumer trust. “Two-thirds of executives surveyed said that building trust was their company’s highest priority, and even more said it was their company’s most valuable asset,” the report says.
Sustainability was a high priority among the respondents. When asked what is the most important area for consumer protection in 2022, 54% said sustainability. That dwarfs all the other options; the next most popular, “entirely new products,” was chosen by only 10%.
Many executives of large companies are casting a nervous eye on upstart competitors. “Seventy-one percent of executives surveyed said challenger brands and new entrants will threaten their company’s own growth in the next one to three years if not already,” the report says.
Labor difficulties are getting attention. Just over half of respondents said they are experiencing increased “voluntary attrition” in their workforces. The overwhelming majority attributed it to the “Great Resignation,” in which much of the American workforce is reevaluating its options, especially with regard to relatively low-paying blue collar jobs. Only 15% cited “internal factors” such as dissatisfaction with company management.
