While short-term market dynamics often grab attention, less visible, slower-moving, yet profound trends are fundamentally reshaping the consumer products market.
A recent study, State of Consumer Products Report: reclaiming relevance ©2025 Ernst & Young LLP, warns brand leaders of several critical areas where they must redouble their efforts to thrive and foster growth through deeper consumer engagement. The study’s premise is that many major brands are experiencing a continuous decline in relevance among their target audiences.
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What Makes a Brand Relevant? Importance. Significance. Indispensability.
Consumers today demand more than ever before. They are actively seeking tangible value, distinct brand identity, and genuine innovation from the products and services they choose.
The report reveals compelling statistics:
- 83% of consumers say they want better quality from brands;
- 78% prioritize better value;
- 67% say they expect brands to “offer something new”.
This sentiment signals a clear shift towards a consumer base that is discerning and expects brands to consistently deliver on their promises of quality, worth, and novelty.
The Need to Channel Customer Insights into Innovation
Meeting these elevated expectations necessitates a fundamental re-evaluation of product and service development strategies. Crucially, this involves the effective integration and utilization of customer data.
The EY report emphasizes that “A reset on innovation is critical. 76% of CP leaders agree that innovation is becoming more complex and increasingly requires analytics and artificial intelligence (AI) — but fewer than a third believe their AI, data and analytics capabilities give them a competitive edge.”
A Significant Gap
While leaders acknowledge the importance of innovation driven by data and AI, many are still lagging in their practical application. Furthermore, the analysis points out that “Despite growing investments in consumer data, only 43% of low-growth companies say they use that data to inform product strategy — compared with 61% of high-growth firms,” directly linking data-driven product strategy to business growth. Brands that effectively channel and leverage customer insights into their innovation processes are better positioned to meet consumer demands and differentiate themselves.
New Ways of Consumer Engagement
Beyond product and service innovation, brands must also adapt to the evolving demographics and behaviors of consumer groups. The generational transformation of consumer segments is opening new avenues for brands capable of forging more direct connections through novel outreach channels and leveraging the power of personalized marketing. Understanding the nuances of each generation’s preferences and communication styles is paramount for building lasting relationships.
Trending Places Where Consumers Discover Brands
Adding to these shifts, consumer habits around product discovery and purchasing are also undergoing significant changes. Social media platforms are increasingly challenging traditional search engines like Google as primary avenues for discovering products and seeking reviews. Platforms such as Reddit, TikTok, and Pinterest are becoming preferred starting points for shoppers, particularly among Gen Z.
More and more shoppers are willing to pay for entry into exclusive retail and product communities, like
- Mass-Market Retailer Premium Memberships, like Walmart+, Costco/Sam’s Club
- Luxury & Fashion Brand Loyalty Programs, like Swarovski Crystal Society, Prada Mode, My Gucci, Nike Membership
- Curated Subscription Boxes, or Styling Services, like CURATEUR, etc.
Shifts in Purchasing Habits
Significant spending is observed on platforms like Facebook Marketplace and the growing influence of social commerce and livestream shopping, especially on TikTok Live. The rise of generative and agentic AI marks a new trend where consumers are increasingly delegating purchase decisions to AI, moving beyond traditional search to allow AI agents to curate and even execute purchases on their behalf. This shift is prompting retailers to optimize their e-commerce platforms for AI search and develop their own AI-powered shopping assistants.
In Conclusion
Major brands are, of course, aware of the evolving consumer needs, yet many are only partially or slowly able to satisfy these new requirements. Strengthening relevance in this evolving landscape requires a multi-faceted approach. Brands must commit to delivering superior value and innovation, underpinned by robust data and AI capabilities.
Leveraging deep knowledge in strategic planning, sub-system integration, data strategy and analytics, technology implementation, and operational optimization in retail, Peakstride directly addresses many core issues identified in the report. This includes empowering brands to adopt personalized marketing strategies and adapt effectively to the shifting landscape of product discovery and purchasing on social media platforms.
Wherever you are in your journey, we are here to assist you from the initial concept to the implementation of retail innovations, with a special focus on digital transformation. The results simplify daily operations, transform data into a valuable corporate asset, and lay a solid foundation for informed decision-making and future developments.
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