Pattern have published an analysis of the most common growth challenges facing consumer brand leaders and where they plan to invest in the near future. Among the major findings, the survey revealed executives plan to increase their financial investment in ecommerce by an average of 17% over the next 6-12 months, with 27% of brands reporting a planned increase of 25-100%. Just 10% of leaders surveyed plan to decrease their overall financial investment during the same period.
To compile the snapshot, Pattern conducted an in-depth survey of nearly 200 founders and ecommerce executives at brands in Europe across dozens of product categories—including Beauty & Personal Care, Sports & Outdoors, Home & Kitchen, Tools & Home Improvement, and more. Respondents represented consumer brands in 18 countries across Europe with revenues ranging from just a few million euros to billions of euros per year. Average yearly revenue for brands in the survey was 32 million GBP.
The findings shed light on a number of questions facing ecommerce executives, including:
- Are my peers experiencing the growth blockers I’m facing?
- How does our short-term growth strategy compare to others?
- What investments am I overlooking?
“Every brand is more successful when they can make data-driven decisions, but brands have historically not had access to good data on what’s impacting their peers and how they are planning for the future,” said Pattern Europe General Manager Torsten Schäfer. “This snapshot ensures that executives don’t have to rely on conjecture alone when making critical decisions about how to shift their strategy for 2024 and beyond.”
Some of the most commonly cited investment areas brand leaders cited:
- 42% of executives plan on increasing their investment in product imagery, video, and copy for online listings
- 41% are increasing in expansion to other online marketplaces and platforms
- 41% are set to increase their investment in international expansion
- 36% are upping their financial commitment for influencer marketing
The most commonly cited growth impediments include:
- 1 in 3 executives say rising shipping costs and an inability to maintain inventory levels are key impediments to their growth.
- 1 in 3 brand leaders are struggling to get unauthorised sellers and distributors under control — eroding their sales and wreaking havoc on their growth strategy
- 1 in 3 also say an inability to expand to recruit good talent is stymying their growth.
