In the last article, I looked at how FMCS (Fast Moving Consumer Shifts) are forcing a significant supply chain realignment for manufacturers and retailers (brick-and-mortar and online), opening potential opportunities for print service providers and converters. In this article, I’ll look at some of dynamics that are driving those shifts, as well as where opportunities will exist.

McKinsey & Company has been following the impact of historic and recent events on consumer purchasing performance and found some interesting statistics: “From 2017 to 2019, large brands (more than $750 million in revenue) in the US lost volume at the rate of 1.5 percent a year. At the same time, small brands grew 1.7 percent, and private label grew 4.3 percent.” In fact, between 2018 and 2019, small brands grew four times faster than large brands. So, the shift away from the big brands had already started before 2020. The pandemic only accelerated that shift and forced consumers to move out of their comfort zone and take a closer look at alternative purchasing channels and brands. And it is anticipated that the majority of consumers won’t go back to the “old ways.”

As a part of that change, consumers also started to take a closer look at their existing brand loyalties. They are focusing on not just what they are buying, but who is making it, as well as how and where to ensure that it aligns with the consumers’ own cultural beliefs. And this is not just a passing phenomenon, but a trend that impacts the largest growing consumer segment. McKinsey found that “Millennials are four times more likely than older consumers to say that they resist buying mass brands” if they don’t align with their beliefs. But it’s not just millennials that are taking a closer look and holding the brands accountable. In a recent Deloitte report, they identified that “Nearly nine in 10 consumers say the pandemic is an opportunity for large companies to hit ‘reset’ and focus on doing right by their workers, consumers, communities, and the environment.”