Megatrends

The trading sector operations are affected by several global megatrends ranging from the digital transition to climate change. By identifying the trends that affect the K-Group’s operations Kesko is able to effectively anticipate future challenges and opportunities and to respond to them ever better.

Global megatrends

Trends affecting the K-Group's operations

International trading groups concentrating on a single product line are challenging local operators

  • Intensification of price competition
  • Slow economic growth and decline in consumer demand
  • Affordable products are preferred for the shopping basket
  • Sales of own brand products are increasing

What we are doing

We concentrate on a more limited number of business operations
We operate more efficiently and at a higher quality level
We develop our own brand products further

 

Consumers' ability to make analytical buying decisions has increased

  • Transparency of selections, prices and availability
  • Importance of social media channels: access to information, exchange of experiences and interaction
  • Product origin and responsibility are important selection criteria
  • Quality and food healthiness

What we are doing

  • We make clear customer promises and deliver on them – service, quality, price
  • We provide comprehensive product, price and availability information on digital channels

 

Digital services play a key role

  • Ease of transactions
  • 24/7 availability of services irrespective of place
  • Targeted marketing based on customer data

What we are doing

  • We offer an ever better customer experience by making use of the possibilities of mobile services, online services and digital marketing

 

Changes in demographic structure coupled with the change in consumer behaviour make customer behaviour increasingly individual

  • Ageing of population
  • Growth in single households
  • Urbanisation
  • Increasing cultural diversity

What we are doing

  • We create new concepts and retailer models and make more extensive use of customer data

 

More than before, responsibility coupled with a strong identity and attractive brands is a prerequisite for operation in every line of business

  • Good corporate governance
  • Open communications
  • Responsible operating principles
  • Adaptation to climate change, energy efficiency and circular economy
  • Management of purchasing chains
  • Responsible investing

What we are doing

  • We take care that responsibility is realised in all our operations
  • We strengthen the corporate identity and the core brands

 

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Growth drivers

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