Consumer and Retail CEOs Brace for 2024, According to KPMG Survey

A recent KPMG survey has identified economic uncertainty, geopolitical instability, and the integration of Generative AI (Gen AI) as the three most significant challenges facing Consumer and Retail CEOs in 2024. The KPMG 2024 CEO Outlook highlighted that while 82% of sector leaders remain confident in their company’s growth trajectory, only 59% share similar optimism regarding the broader economic landscape.

Despite these hurdles, optimism within the sector appears to be growing. Confidence in industry growth has risen to 81%, up from 76% in 2023. The survey attributed this resilience to the Consumer and Retail sector’s role in providing essential goods and services, which maintain relevance even amid economic uncertainty.

The survey also revealed that 81% of CEOs see Gen AI as a critical investment focus, particularly in areas like sales and marketing. It noted a shift in strategy, with companies moving from experimental pilots to efforts aimed at achieving measurable returns. Over half of the CEOs expressed confidence that their investments in Gen AI would yield results within three to five years.

However, 61% of respondents identified ethical challenges as one of the toughest barriers to implementing AI solutions. Most CEOs also emphasized the importance of robust regulatory frameworks to address these concerns effectively.

Nikhil Sethi, Partner and Head of Consumer Goods at KPMG India remarked that while CEOs are navigating a complex and challenging environment, their confidence in the sector’s future is encouraging. He noted that leaders are balancing growth amid muted spending capacity, intense competition, inflationary pressures, and increasing regulatory demands. Sethi stressed that data and analytics, alongside Gen AI, are critical tools for managing these complexities. Organizations that successfully integrate these technologies into their operations, he added, are likely to gain a competitive edge.

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