In today’s rapidly evolving marketplace, consumer products (CP) firms are at a pivotal moment. The convergence of artificial intelligence (AI), direct-to-consumer (D2C) business models, and unified data platforms is fundamentally reshaping how CP companies engage with consumers, drive growth, and build brand loyalty. Yet, the journey toward true data maturity is uniquely complex for CP firms, marked by fragmented data landscapes, the rise of D2C, and the ongoing challenge of operationalizing AI for real business impact. Drawing on research from Publicis Sapient and Adobe, this deep dive explores the state of data transformation in the CP sector, the hurdles firms face, and the best practices that are setting industry leaders apart.
While more than half of CP firms describe themselves as “partially” or “mostly” digital, only a small fraction have fully mastered advanced data and analytics platforms. In fact, just 8% of CP organizations report being completely digital or having fully realized the potential of their data and analytics capabilities. Despite 71% of CP leaders believing they are ahead of competitors in AI adoption, nearly half still struggle to monetize these investments and achieve meaningful ROI.
The COVID-19 pandemic accelerated digital transformation across the sector, pushing brands to rapidly launch D2C experiences, experiment with subscription models, and reallocate resources to meet new consumer demands. However, as digital disruptors and mature incumbents raise the bar, CP firms must move beyond incremental improvements to achieve true data-driven customer centricity.
CP firms often operate across multiple brands, product lines, and geographies, resulting in data silos that hinder a unified view of the customer. While many organizations actively collect first-party data from e-commerce, D2C partners, and social channels, less than half are enriching this data with second- and third-party sources. This fragmentation limits the ability to deliver personalized experiences and slows innovation.
The shift to D2C is both an opportunity and a challenge. Owned digital channels and subscription models are gaining traction, enabling brands to build direct relationships with consumers and collect valuable first-party data. However, many CP firms are still learning how to operationalize these models at scale, integrate D2C data with legacy systems, and avoid channel conflict with traditional retail partners.
While 65% of CP firms have initiated multiple AI projects and 81% have defined significant AI initiatives, nearly half struggle to move beyond experimentation. The most valuable use cases—such as automating insight generation, personalizing marketing, optimizing product recommendations, and improving demand forecasting—are often deployed in pockets rather than at scale. Key barriers include a shortage of AI-specific skills, lack of employee adoption, and limited understanding of AI’s role in evolving D2C programs.
Leading CP firms are embracing several best practices to maximize the value of their data and technology investments:
Managing data and analytics under a single platform is essential for mapping the customer journey across the business. Unified data platforms, such as customer data platforms (CDPs), enable CP firms to integrate data from multiple sources—including e-commerce, retail partners, and IoT devices—capture and structure first-party data for real-time insights, and enable cross-functional access to customer intelligence. This holistic approach fuels more relevant and timely engagement across all touchpoints.
Actively collecting first-party data from owned and partner D2C channels, and enriching it with second- and third-party insights, equips CP firms to better understand consumers, predict demand, and provide more contextual experiences. Less than half of CPs are currently enriching their first-party data, representing a significant opportunity for differentiation.
Moving beyond pilots to embed AI in core business processes is critical. This includes automating insight generation, personalizing campaigns, optimizing pricing and inventory, and enhancing service through chatbots and virtual agents. Firms that foster a culture of experimentation and continuous learning—supported by leadership engagement and transparent communication—are better positioned to adapt quickly and build trust with both consumers and employees.
The shortage of AI-specific skills, lack of employee adoption, and poor understanding of AI among leadership are top cultural roadblocks. Successful CP firms are addressing these gaps through a mix of internal upskilling, strategic partnerships, and offshore capability building. Agile, cross-functional teams are essential for supporting new ways of working and driving innovation across the enterprise.
Nearly all CP firms recognize the need for continuous innovation. Fostering organizational change requires a deep understanding of both process and people. Leadership should involve stakeholders in setting KPIs for AI projects, establish a test-and-learn environment, and use analytics to monitor AI effectiveness. Transparent communication about the successes and roadblocks of AI implementation helps build trust and acceptance.
Publicis Sapient’s partnership with Adobe exemplifies the power of combining industry-leading technology with deep sector expertise. Together, we help CP firms transform their operations and customer experiences through:
Our proprietary methodologies, combined with the Adobe Experience Cloud and Adobe Experience Platform, empower CP brands to build meaningful relationships with customers, drive e-commerce growth, and stay ahead in an ever-disruptive marketplace.
The horizon for customer experience innovation in the consumer products industry is bright. As technology continues to evolve, CP firms that invest in unified data, AI, and a culture of agility will be best positioned to deliver the personalized, context-driven experiences that today’s consumers demand. By overcoming data silos, operationalizing AI, and embracing a test-and-learn mindset, CP brands can unlock new sources of growth, deepen customer loyalty, and secure their place as leaders in the digital economy.
Ready to transform your customer experience? Discover how Publicis Sapient and Adobe can help your organization build the data-driven foundation for sustainable, scalable growth in the consumer products sector.