The Future of Consumption System Initiative of the World Economic Forum explores how rapid pace of technological advancement can drive enhanced models of consumption with sustainable benefits for business and society, across developed and emerging markets. Over the next decade, the shifting global forces, the one billion first-time consumers and the Fourth Industrial Revolution will continue to change the landscape of consumption in fast-growth consumer markets that are leap-frogging: China, India, and the ASEAN region. In 2017, the WEF launched a multi-year project "Future of Consumption in Fast-Growth Consumer Markets" endorsed by cross-industry CEOs and Board of Stewards. Its purpose: to develop a 10-year perspective of what consumption in each focus market will look like, including potential scenarios and relevant calls to action for consideration by business and policy leaders to ensure sustainable business and inclusive societies.
Bain & Company was invited to collaborate with the WEF on this project. Kicking off with a focus on China, the second largest economy in the world poised to become number one by the year 2030, the effort is led by Bain partners Bruno Lannes, Greater China head of Consumer Product & Retail, Richard Hatherall, Head of AP Customer Strategy & Marketing, and Mike Booker, Head of AP Consumer Product & Retail.
Building on the global overlay of post globalization and the Fourth Industrial Revolution, the 2017 research Future of Consumption in Fast-Growth Consumer Markets (China Module) builds on the four major local forces that will influence the future of consumption in China:
- Continued economic growth
- Key generational demographic shifts
- The enabling innovation & technology environment
- The evolution of consumer attitudes
The research has identified the 10 big headlines of the base case vision which combined will define China's consumer market by 2027. Two alternative scenarios have also been developed, taking into considering the underlying uncertainties of each of those forces.
The report will highlight four major capabilities required for business to thrive in the China consumer market over the next decade, the four key societal challenges that need to be overcome through public-private cooperation, as well as possible actions to build the future business capability and overcome societal challenges. The findings will be presented in a closed-door session at the Future of Consumption System Initiative Stewards meeting during the Annual Meeting in Davos of the World Economic Forum in January 2018.