It is no secret that E-Commerce has been the main growth engine for consumer goods companies in recent years, but what is less clear, is how best to set up your organisations to react to this. China, as the largest and most complex digital environment, as well as the leading digital innovator, provides some valuable lessons on the types of options available.
In the last 10 years, China has evolved from being a simple “copier” of digital trends to a leading innovator. It is now the largest E-Commerce market in the world, worth US$ 700 BN
Examining top consumer goods companies in China, we can see that multiple organisation models are visible, and ultimately companies need to make key design choices around reporting lines, degree to which functions are dedicated to E-Commerce, and degree of outsourcing.
Choosing the “right” organisation model depends on several business contextual factors: how complex your business is, how mature your E-Commerce business is, and what type of culture you promote
Ultimately however, whilst organisation structure will help, it will not provide the whole answer, and companies will need to make sure they have the right talent, culture and ways of working in order to win.
This report examines different organisation models available to consumer goods companies and key factors to consider, through the lens of leading consumer goods companies in China.
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