Operating Models for the Future of Consumption

The report argues that traditional linear value chains in consumer packaged goods (CPG) and retail are being disrupted by combinatorial technologies and empowered consumers. To survive, companies must shift to 'consumer-obsessed' operating models characterized by agility, ecosystem collaboration, and a liquid workforce. The document highlights a significant risk of automation, particularly for middle-skill workers, and calls for public-private partnerships to implement 'flexicurity' and radical reskilling to prevent widespread unemployment and inequality.

• Traditional consumer industry companies are facing high rates of obsolescence; 41% of S&P 500 Consumer Industry companies have been acquired or gone out of business since 2000, and 50% of current S&P 500 companies are predicted to face the same fate within ten years.
• Future operating models must embrace seven transformative characteristics: Human (purpose-driven), Living (agile), Enhanced (tech-augmented), Ecosystem (collaborative networks), Modular (plug-and-play capabilities), Liquid (flexible talent sourcing), and Enduring (sustainable and trusted).
• The report identifies a shift toward 'combinatorial technologies' where multiple innovations work together to lower barriers to entry and enable the repatriation of manufacturing by bringing production closer to consumers.
• Automation poses a severe risk to the US workforce in consumer industries, with 54% of CPG worker activities and 40% of retail worker activities potentially automatable. This displacement could effectively double the US unemployment rate if no new roles are created.
• Middle-skill workers—those requiring more than a high school diploma but less than a degree—are more vulnerable to automation than low-skill workers due to the high repetition and low need for critical thinking in their roles.
• To mitigate employment risks, the report advocates for 'flexicurity,' a model that ties social safety nets, pensions, and healthcare to the individual rather than the employer to support a liquid workforce and job mobility.
• There is a critical need for 'radical reskilling' as a cost-effective alternative to recruitment; for software engineers, this approach is 63% more cost-effective than traditional hiring over three years.
• Consumer trust is a primary barrier to data-driven success, with 57% of consumers concerned about how businesses use their information and 41% requiring greater transparency to have confidence in products.

APA

World Economic Forum (2018). Operating Models for the Future of Consumption. http://www3.weforum.org/docs/WEF_Operating_Models_for_the_Future_of_Consumption.pdf

Chicago

World Economic Forum. Operating Models for the Future of Consumption. 2018. http://www3.weforum.org/docs/WEF_Operating_Models_for_the_Future_of_Consumption.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Operating Models for the Future of Consumption |date=January 2018 |url=http://www3.weforum.org/docs/WEF_Operating_Models_for_the_Future_of_Consumption.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2018operating, author = {{World Economic Forum}}, title = {{Operating Models for the Future of Consumption}}, institution = {World Economic Forum}, year = {2018}, month = jan, url = {http://www3.weforum.org/docs/WEF_Operating_Models_for_the_Future_of_Consumption.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }