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Over the next five years, changing consumer behaviors and new technologies will transform the ways that consumer goods (CG) companies interact with their customers. In particular, web3, a decentralized approach to the Web, offers CG companies in the GCC a chance to update their business and operating models to serve consumers better, improve productivity, and future-proof their organizations. CG companies should adopt web3 technologies such as decentralization, blockchain, token-based economies, and extended reality with two main objectives: to enhance the customer experience and to improve supply chain performance.
It is imperative that organizations start their web3 journey now. CG organizations can begin with incremental improvements—both top-down and bottom-up—and iterate from there to achieve significant transformations.
As CG companies in the GCC strive to adapt to, and capitalize on, these shifts, they can find many opportunities in the distributed business models enabled by web3. Web3 is the latest phase of digital development. It incorporates technologies such as the distributed Web, artificial intelligence (AI), blockchain, extended reality, cognitive devices, and distributed apps. Collectively, these elements enable more immersive experiences than previous digital technologies. They empower users to control more of the content. The distributed business model of web3 gives content producer–owners the autonomy to plug their content into any constellation (a decentralized network) to maximize its utility, and to unplug if they wish to. In that sense, web3 is a move away from centralized entities.
“The estimated total global potential market for web3 is anticipated to grow to between us $2.6 trillion and $12.5 trillion over the next decade.”
Web3 offers the opportunity to create a richer consumer experience while protecting consumers’ data. As with their content, in distributed business models, data ownership stays with the content producers and resides on a distributed ledger. Each content producer–owner has the power to decide which aspects of their data they choose to share, with whom they are willing to share, and on which channels they wish to engage with the brand. Distributed AI models use this consumer- owned content to provide consumers with localized, contextualized, hyper-personalized, and omnichannel experiences.
Web3 technologies can build a “trustless” supply chain—i.e., a supply chain in which participants do not need to know or validate the other participants. Blockchain-based capabilities can make supply chains paperless, transparent, and high-speed. Using data science and AI-based capabilities, CG organizations can develop autonomous intelligent supply chains to predict consumer expectations, automate decision-
making, and more accurately meet consumers’ demands.
Launch structured top-down measures to maximize opportunities from distributed business models and web3:
Develop complementary, iterative, bottom-up pilots:
CG leaders in the GCC must transform how they operate to keep up with changes happening in the sector. A critical part of such efforts is the adoption of web3 technologies so that they future-proof their business models. If they act now, companies can create significant value by becoming more agile, resilient, and customer-centric.
Consumer goods (CG) companies in GCC countries are expected to undergo significant transformation due to changing consumer behaviours and emerging technologies. Web3 and the latest development of the internet, can help CG companies enhance the consumer experience, improve productivity and future-proof their business.