Organizational Agility in CPG - How technology will shape in-store experiences in 2025

The secret weapon that CPG brands are looking to stay competitive in 2025 has to be "organizational agility" as it is a strong Key Performance Indicator reflecting on the ability to adapt quickly to changes in market, customer needs, or to operational challenges. 

Here’s a look at key trends for 2025 and how technology is enabling agility:

Real-time inventory management - IoT enabled smart shelves and AI based forecasting will help minimize out of stock situations and overstocking. Forrester estimates these will drive efficiency improvements by 35%.

Dynamic pricing and promotions - Brands will adjust prices in real-time as a function of demand, competition, and inventory levels using "AI analytics" and "digital shelf labels". Gartner predicts that 50% of the major CPG companies will adopt dynamic pricing by 2025.

Agile Workforce Management - McKinsey predicts that "mobile apps" will equip store associates with real time inventory and customer data enabling them to be more productive by a factor of 25%, while "AI-driven tools" will optimize staffing based on customer flow and store needs.

Faster Product Launches - Forrester reports that "digital twins" and "advanced analytics" will speed up new product testing and placement, reducing the time to market by a factor of approximately 30%.

Customer-Centric Store Design - AI heatmaps and AR simulations will enable retailers to test, refine and optimize store layouts before making in-store changes. Gartner estimates that this will enable sales improvements by a factor of 15%.

The bottomline is, organizational agility will separate the leaders from the laggards in 2025 and beyond.

It will be very important to be one step ahead of customer demands, consumer expectations and market dynamics by leveraging technologies like AI, IoT, AR, etc.

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