Consumer Sector Insights

Consumer Products and ServicesThis paper presents one-on-one interviews and commentary from leading retained executive search consultants, all members of the Association of Executive Search Consultants (AESC), who specialize in placing executives in the consumer products and services sector worldwide.

Page 2-4: Expert Q&A* Tim Boerkoel, CTPartners

Page 5-7: Expert Q&A* Jonathan Holmes, Korn Ferry

Page 8-10:Expert Q&A* Alastair Paton, Signium International

Page 11-13: Focus on China* Charles Bien,Signium International

Page 14-15: Expert Q&A* Vikram Chhachhi,Heidrick & Struggles

Contents:

Page 16: Expert Q&A* Ulrich Ackermann,TRANSEARCH

Executive Search & Career Forecast

Expert Q&A - Focus on Consumer Products and Services

Tim Boerkoel, CTPartnersManaging Partner, Global Head of Consumer & Retail Practice

First of all, thank you for taking the time to speak with the AESC and BlueSteps about the consumer products and services sector trends in executive search. Would you share with us a bit about the work you do at CTPartners?

CTPartners is a leading performance-driven global executive search firm. Committed to a philosophy of partnering with our clients, we offer a proven track record across all business sectors in CEO, C-Suite, top executive and board searches, as well as expertise serving private equity and venture capital firms.

As Managing Partner and Global Head of the Consumer and Retail Practice, I oversee our worldwide network of professionals dedicated to these sectors, including Luxury, Specialty, Consumer Packaged Goods, Consumer Staples and Hospitality. I also maintain an active search practice specializing in the Retail and Luxury sectors.

What are some of the current trends you are witnessing in the consumer products and services sector? Where are you seeing the most growth and the least growth?

Challenges remain consistent this year within the consumer products and services sector. Companies continue to experiment with strategic and unique methods of engaging with their customer base while consumers become increasingly adept at new and emerging technologies. However, the recession’s effects still linger as economic uncertainty leads to frugal behavior and the inevitable erosion of brand loyalty. Consequently, consumers continue to look at private label offerings as acceptable replacements for their “must have” national brands.

Influenced by this lingering economic uncertainty, we are also seeing continued growth across emerging channels like online, club and dollar stores. In contrast to what I said earlier, the luxury sector has been strong, especially in apparel, accessories, cosmetics and automobiles. Consumers are investigating multiple channels to purchase their various consumer products. As a result, more traditional grocery and big box channels are adapting.

How has digital transformation impacted the consumer products and services sector? How are leaders in the industry managing these industry changes?

Looking back at historic advances in communication throughout history, we’ve often had decades to absorb and adapt to the latest technological marvel. Today, we have weeks or months. Consumers are engaging with digital content through more media devices than ever before; in fact, it was predicted that consumers would spend more time on mobile devices in 2014 than computers for the first time ever.

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AESC.org - BlueSteps.com

https://www.bluesteps.com/se/partners/n2094.asp


“CPG companies have not been aggressive enough in

prioritizing digitally inclined talent...Emerging from the recession/depression, the race for digitally savvy

contributors is on.”How can a candidate best present him or herself to get noticed by executive recruiters in today’s marketplace?

Executives should clearly illustrate their achievements, accomplishments and responsibilities. They should elaborate on multiple skill-sets, yet effectively summarize their best contributions to a business. Executives should also display their people leadership skills and succession planning commitment and experience.

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One area of particular interest is digital marketing effectiveness. According to eMarketer, one of the leading digital marketing research firms, total advertising budgets for CPG companies are increasing. Citing their annual report, “US CPG and Consumer Products Industry 2014: Digital Ad Spending Forecast and Trends,” eMarketer projects that digital ad spend for the industry will grow at an annual rate of 14.7 percent between 2013 and 2018. With current ad spend at $4.2 billion, eMarketer forecasts that marketers will top $7 billion by 2018, practically doubling the $3.55 billion spent in 2013.

Approximately one-third of that budget will focus on mobile. According to eMarketer’s report, “CPG marketers are particularly interested in using mobile’s geolocation tools to reach consumers when they are on the way to a store or in the aisle itself.” Precision marketing is on the rise.

A recent Forbes Insights study confirms that companies not taking advantage of digital technologies to improve marketing efforts are falling behind their competitors. Since digital transformation is becoming a wider issue, have CPG company hiring committees started seeking out board directors, CEOs and CFOs who are more focused on digital than they were traditionally?

CPG companies have not been aggressive enough in prioritizing digitally inclined talent. To be fair, the last five years have been an exercise in staying the course and seeking growth opportunities geographically (i.e. BRIC markets) verses functionally. However, emerging from the recession/depression, the race for digitally savvy contributors is on.

What trends are you witnessing in the consumer products and services sector as it relates to executive search? What searches are being conducted and what skills must candidates bring to the table to be considered for these opportunities?

We are seeing an increased emphasis placed on international experience. A cross-functional background with multi-industry exposure is also highly coveted. Companies look for executives who are willing to fully embrace their brand, marketing strategies and P&L responsibility, as well as operating and supply chain logistics.

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If you could offer one key piece of advice to today’s senior leaders, what would that be?

Executives need to be flexible and versatile while also demonstrating a clear, concise and balanced point of view. They also need to display strong leadership skills and embrace the next generation of talent.

Cybersecurity has become a major concern as more consumer products and services companies begin to collect data from customers and take advantage of the opportunities eCommerce has to offer. Are new executive opportunities being created to help organizations in this industry manage threats and deal with the consequences?

We are seeing two trends. First, existing roles are being modified, enhanced and expanded to include repercussions of advanced technology. For example, the CIO/CTO of 20 years ago did not consider the privacy or ethical issues of obtaining consumer data knowingly or unknowingly. Today’s leaders are required to anticipate and hold the moral compass of data collection and usage. Second, companies are seeking leaders who are better able to forecast needs based on emerging technology. As rapidly as technology and platforms change, those innovations offer new roles and skill-sets for organizations to adopt.

Consequently, from our research and hearing directly from our clients, we have seen an increased need for Chief Information Security Officers, or even Chief Information Officers with meaningful experience in developing security infrastructure in order to mitigate the substantial financial risks attached to potential security breaches. Best in-class companies such as SC Johnson, Procter & Gamble, Hershey, Harley-Davidson, Limited Brands and Tempur Sealy have either Chief Information Security Officers or high-level IT Security teams (Target announced the hiring of Brad Maiorino, Senior Vice President and Chief Information Security Officer, in June).

However, according to a 2013 KPMG study, only one-third of companies have a formal cyber incident response plan in place. And nearly three-quarters of participants described their company’s cyber maturity level as average or below.

In a retail environment that is both digital and global, potential threats can emerge from anywhere forcing consumer products and services companies to acknowledge the undeniable risks to their brands and the bottom-line.

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5 Expert Q&A - Focus on Consumer Products and Services

1993. After the merger, I broadened my practice to cover transnational search work across Northern Europe. I have served as a resident consultant and Country Manager/Managing Director in India, Russia and South Korea, and as a practice lead for ASEAN based in Singapore.

What are some current trends you are witnessing in the consumer products and services sector? Where are you seeing the most growth and the least growth?

In the consumer services sector, and assuming we include the hospitality & leisure area in this definition, the Middle East region, in pockets has seen tremendous growth. Led by Dubai, the hospitality sector has gone through a renaissance since the 2008 economic slowdown and has truly blossomed into a major component of the economy. Abu Dhabi has been fast developing in this space and has significant assets under development. Saudi is a strong growth market and its size means it represents a strategic market for all players. Qatar has also seen a lot of infrastructure built out in hospitality, partly to accommodate the economic growth in the country and partly to accommodate future events in the pipeline.

In consumer products we have seen an incremental

Jonathan Holmes, Korn FerryManaging Director, Middle East

First of all, thank you for taking the time to speak with the AESC and BlueSteps about the consumer products and services sector trends in executive search. Would you share with us a bit about the work you do at Korn Ferry?

My executive search career spans over 20 years and six countries, where I have undertaken general management searches across a range of geographies and industries, with a focus in the consumer sector. Prior to my current position as Managing Director for the Middle East region from 2011 (covering three offices & 26 people), I was the Managing Director for Korn Ferry’s Seoul office for 10 years.

Before Korn Ferry, I was a consultant with Carré, Orban & Partners which merged with Korn Ferry in


recovery from the 2008 period across nearly all categories and markets. Saudi remains the stand out market, again in large due to the size of this market. UAE is a sophisticated consumer market and continues to grow. Other GCC markets have seen steady development, with Levant continuing to see a little market instability due to external influences. Africa is becoming an increasingly important topic and more firms are using the UAE as a launch pad for their operations in Africa as a whole.

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How would you describe the outlook for the consumer products and services sector in Dubai and the UAE as a whole?

The UAE and Dubai will continue to experience growth. The modern trade continues to grow and this spurs opportunity for the consumer businesses from a products point of view and as we discussed earlier, the services sector in hospitality and leisure is truly prospering.


Have any new functional roles emerged due to digital transformation in the consumer products and services sector?

The impact is more around growth than functional diversification. Digital commerce in consumer businesses still falls as a subset of marketing; and for products companies, this continues to represent a channel for marketing rather than a way to deliver products to market. The global digital powerhouses are growing rapidly in the region based on the passion for digital media, entertainment and communication.

What is happening in consumer products and services right now in terms of executive opportunities? What particular roles and skills are in demand?

The skills demands in the region have varied little and leadership demand tracks growth and natural churn. There is relatively little functional innovation for doing business radically different and we would therefore see classical general management and functional leadership demands.


A trend that is new to the region, and reflects the evolution of both the region and the companies located here, is the development of a more sophisticated corporate governance. Companies are looking at the board structures and implementing enhanced board structures. As mostly non-fiducial boards, the groups created are often advisory boards constituted with true international experts in their fields.

Are there opportunities in consumer products and services for executives who have no previous

How has digital transformation impacted the consumer products and services sector? How are leaders in the industry managing these industry changes?

The digital wave is sweeping across the region, as it is everywhere; though its impact affects different components of the business in different ways. The GCC is very digitally savvy though more from an entertainment prospective. Digital commerce has not penetrated as far due to cultural reasons (shopping is a leisure/family experience in many GCC countries) and delivery infrastructure.



experience in that sector? If so, who is a likely candidate to make a successful career transition into consumer products and services?

The region has relatively little appetite for leadership adventure, preferring square pins for square holes. HR, finance, technology, etc. can be clear exceptions to this but sales, marketing and general management have little leeway for having backgrounds too off the mark in this sector. How can a candidate best present him or herself to get noticed by executive recruiters in today’s marketplace?

Search firms are one channel to market and for retained firms our ability to help any person at any one point in time is limited. For this reason, my advice is to develop relationships with search firms in good times and in bad. Do not first approach the search firm when you want a new role; you may be disappointed with the lack of success in the short term. Search firms receive a lot of unsolicited requests for help and rarely can the firm or person help immediately. Access is often best through a soft contact point – a person you know already in the firm and have that person make the introduction. Help search firms when they call for advice and sourcing – it will get you known to the firm, and most importantly, as someone who has been helpful in the past.

“Develop relationships with search firms in good times and in bad. Do not first approach the search firm when you

want a new role [or] you may be disappointed...”

Generally, getting noticed through speaking at conferences (it will show up to our researchers who scan the markets), associations, business groups, etc. can also be helpful.


Even if you believe you have effectively promoted yourself throughout your career, never miss an opportunity to practice selling yourself. This is especially true for executives who have been in one function, geography, industry or organization for a long time and who may be stuck in their ways no matter how “current” they think they are.

Therefore, whether you are actively looking for a job or not, use every encounter with new people to repeat your pitch aloud. This may lead you to discover new ways of positioning yourself to create a buzz. Doing so will help you clearly define and attract what you ultimately want and give you feedback on areas where your approach may not resonate.

Cybersecurity has become a major concern as more consumer products and services companies begin to collect data from customers and take advantage of the opportunities eCommerce has to offer. Are new executive opportunities being created to help organizations in this industry manage threats and deal with the consequences?

Cybersecurity tops the list for many firms. In the UAE, we do not see great focus from the corporate sector, though firms are using cybersecurity consultants to help identify risk and to plug the gaps. Cybersecurity also touches into national security, which is also an area where there is an increased level of focus.




Alastair Paton, Signium InternationalManaging Partner UK and Regional Director, EMEA


First of all, thank you for taking the time to speak with the AESC and BlueSteps about the consumer products and services sector trends in executive search. Would you share with us a bit about the work you do at Signium International?

I am one of three Managing Partners at Signium International’s UK partner, Snowdon Tate. Signium now has over 50 offices around the world and is very well represented globally in the consumer area, with more than a quarter of global revenue coming from this practice area. We have a thriving consumer practice group, which meets face to face twice a year and uses regular conference calls, projects and joint assignments to develop common direction and ethos. I lead the global consumer practice on behalf of Signium.

What are some current trends you are witnessing in the consumer products and services sector? Where are you seeing the most growth and the least growth?

It is a mixed picture, and it is difficult to define consistent global trends. Three I would highlight that we see and recognize are:

1) A genuine and growing emphasis on sustainable development. Some of the largest and most

“The best businesses recognize that they cannot just preach to an audience. They need engaged consumers, which

means marketers and others must create a whole brand

experience...”

successful businesses, such as Unilever, are embedding sustainable practices in what they do. They believe this investment will make them more successful in the long term, while also helping them attract the best talent. Today, this talent often chooses where to work based on how able they are to engage with the company’s values.

2) Further consolidation in many sectors. The larger consumer businesses are getting larger and continuing to look for acquisitions and merger opportunities, despite the fact that these activities often have a poor track record of creating real value. A significant group of smaller, more agile challenger businesses are thriving around the world, taking advantage of the slower moving giants that mergers have created. A lot of innovation and creativity is coming from these businesses and they are highly attractive to talented individuals.

3) Customer and brand experience is now a primary focus. We are seeing the best businesses recognize that they cannot just preach to an audience. They need engaged consumers, which means marketers and others must create a whole brand experience and focus particularly on their digital presence, how they recognize consumer communities, how authentic the brand looks, feels and sounds through different media and, again, the social purpose of the company and brand.

4) Increasing conservatism in decision-making. Post-recession we should be seeing a positive attitude towards grasping emerging opportunities, but we are not always seeing this. We are seeing incremental




rather than brave decision making. Perhaps controversially, I would suggest the fact that we are seeing more senior finance people move into general management roles could be a factor influencing the attitude to risk. Where is the senior commercial talent that should be ready and willing to take on key leadership roles?’

How would you describe the outlook for the consumer products and services sector in the United Kingdom and Europe as a whole?

The retail environment in the UK is extremely difficult at present, which makes it hard for many businesses to invest in creating brands and delivering growth. Many traditional fast moving consumer goods (FMCG) markets are saturated, which has made it a challenge for companies to create anything new and exciting that consumers want to buy. This is also true to a lesser degree across Europe, which is also suffering in some countries from weak or no growth. There is optimism, however, when we see companies, often under private ownership, who have products and brands that offer something new and are able to focus and deliver consistently. The food service sector seems particularly exciting at the moment, with anticipated growth more towards US levels of home consumption in Europe. How has digital transformation impacted the consumer products and services sector? How are leaders in the industry managing these industry changes?

It is a revolution of course, that touches everyone. There are some businesses that seem to continue to see digital simply as an executional tool for marketers, but the best leaders are looking at opportunities to review and reinvent business processes using digital tools. Some obvious examples we see are in creating better consumer engagement by building virtual communities to educate, inform, share and review, and the opportunity some businesses are taking to look differently at the supply chain for example with “click and collect” models that bring online and traditional retail together. The best leaders are raising the level of digital expertise across their business and embracing opportunities to challenge how they operate, rather than simply appointing a team of experts who sit within one functional area.


Yes, but it varies. Some companies are appointing a senior individual to lead digital and will have them reporting in at a leadership level. Others are looking for enhanced digital awareness and skills within senior leaders in all functions. Within some marketing departments new specialist roles are emerging and many businesses will also look at e-commerce expertise as well within their supply chains. As supply chains evolve and the route to the consumer becomes more direct in many cases, we are seeing the elevation of supply chain as a function and the development of a new function, Customer Experience.

What is happening in consumer products and services right now in terms of executive opportunities? What particular roles and skills are in demand?

The key areas we are seeing are:1) Global mindset: Whether just a domestic business looking to source or sell internationally, or a major multinational, executives with a global mindset who can see the opportunities that exist beyond their borders are in demand. They need to be able to work with and lead different nationalities and also recognize the differences in pace and process in a developing country compared to a developed economy.




2) Commercial excellence: The recession and its effects have made all businesses more aware of the need to watch cash and to be adaptable and flexible. Leaders have to be more commercially savvy, irrespective of their functional background.3) Digital appreciation: As mentioned above.


Executive search is evolving. Clients are demanding that we offer more; it is no longer enough just to know the sector and have good people and process. We now must be able to tell them things they don’t know and offer advice. Search consultants have to look at finding candidates who are the best fit for the company and opportunity, not just those who have the best skills and experience. The best candidates are those that are externally orientated and know about what is happening outside the bubble of their company; they have to be prepared to take the time to engage with opportunities and really understand how a new role may fit in their longer term career plan. They need to be active on social media and well networked. And they of course need to work with us during the process, being open and honest throughout! Are there opportunities in consumer products and services for executives who have no previous experience in that sector? If so, who is a likely candidate to make a successful career transition into consumer products and services?

It’s not likely to be a popular answer, but in my view, this isn’t an easy thing to do. Since the recession, many businesses have become more risk averse. At senior levels, the desire to bring in new thinking is balanced by the feeling that assessing candidates from different backgrounds can be more difficult as you have fewer points of common reference and that candidates from outside the sector will lack the “feel” for how things are done that can be so critical to successful decision making. There are exceptions but this is often the reality.

How can a candidate best present him or herself to get noticed by executive recruiters in today’s marketplace?

It’s a crowded marketplace with many candidates and there are large numbers of recruiters. It can seem like a minefield. Don’t panic! Spend time thinking about your personal brand: What do you stand for? Why have you been successful? What do you enjoy? What is unique and different about you? Get advice to help you to get a presence in social media (LinkedIn), and to get your CV prepared. Get out and network, with a plan. Talk to colleagues, agencies, consultancies and recruiters and share with them who and what you are. Listen, listen, listen. Be authentic.


Networking is not just about social media – get out there and talk to people. Deepen your understanding of your market sectors, of what trends there are, of what younger people are thinking, of what agencies, consultancies etc. think is important. Build and nurture a trusted network you can use before you need to use it.




Successfully entering the consumer market in China is the dream of every company in the consumer sector. Whether you are in vehicles, food and drink, electronics, fast food or any other business selling to individuals, the thought of 1.6 billion consumers all readily approachable within one country is mouth-watering. But of course, nothing in business (or in life itself!) is straightforward; China is unlike any other market in the world.

I recently spoke to a number of senior people at the top of several large and well-known consumer businesses. Several themes have emerged from these discussions about what strategies can make the difference between success and failure. For obvious reasons, some names have been changed, but I have used direct quotes about their experiences.

Freeman H. Shen, Chairman of Volvo China, personally conducted the negotiations between Geely (the now owners of Volvo worldwide) and Ford Motor Company for purchasing the Volvo Car Corporation in Sweden. This purchase by Geely was the first deal of its kind between a western and a Chinese company in the motor vehicle industry.

“It took a really long time to put the deal together,” says Freeman. “And when we took over, Volvo employed about 20 people selling around 27,000 cars a year in China. The Swedish executives did not believe we could make a success of selling more cars in China in very short period of time but we are now approaching 90,000 sales a year only four years later. Meanwhile, China is the most profitable market for Volvo today; and we have two factories in China to produce cars locally.”

Freeman considers Volvo China’s success to be due to three factors: “You must get the product right, the sales and distribution channels right and, in China especially, you must have the right team.”

No doubt many companies operating successfully around the world would give similar advice. But James, who has led a beverage company, agrees that China is so different from elsewhere. “You must live in the country to know it and understand it,” he emphasized. “This beverage company had been using distributors to sell its product.”

The beverage company had a long history in China, but its core brand was old and tired.

“My first task was to identify the right markets and to define a clear strategy for each of our brands,” said James. “Then we had to understand the consumers in each of our markets.” This comes as a surprise to many people – China is not one market. It is many and very diverse. Tier One cities as they are known (Beijing, Shanghai and Guangzhou for example) are more sophisticated and knowledgeable than the Tier Two and Three cities, let alone Tiers Four and Five. “You simply cannot expect a consumer in, say, Chongqing or Wuhan to have the same view of your product as someone in Beijing,” he says.

This is also true of the car industry, says Freeman. “People in Harbin (one of the most northern cities in the PRC) look for very different options in their Volvo from those in southern cities. I guess it’s the same between, say, Helsinki and Rome also.” But the differences between European and Chinese markets for cars go beyond that. “In Europe they like pale colored interiors – maybe it’s because the atmosphere is dark so often. But in China, no matter where you live, dark colors mean prestige. Pale colored upholstery simply will not sell.”

Focus on China: A Unique Consumer MarketBy: Charles Bien, Signium International, Managing Partner, Greater China




Ben Jones, an executive from the technology and consumer electronics sectors, also emphasizes that understanding customers in different parts of China is critical. “I think the differences between the cities and regions is greater here than almost anywhere else in the world, including both Eastern and Western Europe,” he says firmly. “In Tier Five cities, they use bicycles to shop; e-commerce is unknown yet. In Tier One cities, your products, for example mobile phones, need to be far more sophisticated and can sell for higher margins. In lower tier cities, phones need to just work and they must be cheap.”

Distribution channels are even more critical and complicated for the electronics sector. “During my time in the mobile phone industry, we had endless complications and delays with the huge and powerful network operators who have different technical standards from each other and from the rest of the world. You cannot survive without a very strong product.”

Distribution for most companies means taking control of your sales and marketing instead of leaving it to third parties. “Along with almost every other company, we are looking at e-commerce,” say both James and Jones.

I am also adamant that companies don’t underestimate the power of e-Commerce in the consumer sector. It’s the typical big leap forward in China, like the explosive growth of mobile phones. Everyone is looking to B2C e-commerce and it is highly likely it will surpass traditional trade soon.

“There is a very high demand for talent but only a limited supply of capable people. While other sectors may still go for talent with general knowledge of their industry, the consumer sector

always looks for executives with specific industrial and product

knowledge and experience.

Indeed, all of my correspondents emphasise not only the rapid changes occurring almost monthly but the increasing competence and confidence of local competitors.

“Some of the household names in China are vast and powerful competitors,” reiterates James. “But most people outside China have never heard of them. They produce quality goods equal to and sometimes better than foreign companies at a fraction of the price.”

Ben agrees: “They also know exactly how to deliver these to consumers in the different markets; and have information it can take a foreign company years to find out.”

If understanding the many local markets is critical and arranging the most effective distribution of your products is another and essential success factor, what about people?

Kasper Cheung, Signium China’s Managing Director in Shanghai, is positive about the shortage of talent: “There is a very high demand for talent but only a limited supply of capable people. While other sectors may still go for talent with general knowledge of their industry, the consumer sector always looks for executives with specific industrial and product knowledge and experience. And there is not enough of this talent to go around.”




There is a massive shortage of capable talent in the consumer products industry in China, Freeman, James and Ben all agree. Training is a vital way to make the most of the people you have taken so much time and effort to recruit, especially if you are working in the Tier Three and Four cities.

“It is harder to find good experienced people in the lower Tier cities,” agrees Cheung. “All the best executives are in Tier One and Two cities.” Another issue arises between foreign companies and local workers. “Europeans tend to be somewhat socialistic and democratic; in China, management needs to be more directive to move faster.” The different cultural styles give rise to endless problems between expatriates and locals in China and between Headquarters in other countries and the local office on the ground in China. “The more sophisticated companies and people are getting better at this,” comments Freeman, “but there is still a long way to go.”

Cheung sees this vividly: “There have been many spectacular failures from large companies entering the China market without doing enough homework.” He gives examples of some well-known household names. “The worst thing you can do is to import a HQ culture and expect it to work in China. You have to understand and respect the local way of doing things, and hire the best local people at the top, or you will never succeed in China.”

In summary, the golden rules are:• Do your research and identify the regions/cities most relevant for your products.• Understand the market – all the markets in China where you think you can best operate.• Be prepared to modify your products to suit the various markets you have identified.• If possible, develop your own sales, marketing and distribution facilities, taking into account the e-commerce potential.• Make sure you recruit the right local executives at the top and pay attention to them, especially engaging them in HQ relationships.

Above all, recognize, at the highest levels of your organization, that China is truly different; you cannot do “what you do everywhere else” and expect to succeed.



Vikram Chhachhi, Heidrick & StrugglesPrincipal, Global Consumer Markets

In our 2014 BlueSteps Executive Outlook Report, 51% of executives reported a positive outlook for the executive job market (an increase of 15% compared to 2013). How would you describe your outlook for the global consumer products and services sector?

I would say that the outlook for the Consumer Products & Services sector is positive and we see it improve markedly from about a year ago.

How would you describe the outlook for the consumer products and services sector in India?

I would say the same for consumer products and services in India, barring some sectors, like retail in particular, which have larger structural and regulatory issues to deal with and will take more time to rebound. Having said that, few individual retailers that have identified India as a key potential growth market are pulling out all the stops. These are, for example, IKEA, GAP, H&M, Starbucks and the various brands and franchises of the Inditex Group.

Geographically, which markets or regions are particularly strong for consumer products and services this year?

In India – across the board. Pretty much as similar to Asia, with growth surges coming from South East Asia, Indonesia, the Philippines and Indo-China. Comparatively, India and China seem to be headed for medium to medium-high growth, considering they have massive potential and sizes.


Two that come to mind straight away are the Chief Digital Officer (CDO) and the Chief Experience Officer (CXO).


We are increasingly engaged with searches at the board and CXO levels and there seems to be sustained growth for such leaders. The consumer sector by itself is under pressure for talent since other sectors (digital, eCommerce, consumer financial services, etc.) also draw from this talent pool. In terms of skills and experience, these leaders must definitely have global experience – multi-country or regional.





They are also required to have had strong exposure to a successful start-up experience, a successful turnaround experience and/or a successful scale-up experience of a medium business to a US $1 billion+ business. Of the three, the last is the most in need and the hardest to find. In addition to business skills and acumen, leaders who have successfully planned succession, led critical diversity initiatives, as well as led governance and compliance issues at the board level are in high demand.

“The consumer sector by itself is under pressure for talent since

other sectors also draw from this talent pool. In terms of skills and experience, these leaders must

definitely have global experience – multi-country or regional.”

Are there opportunities in consumer products and services for executives who have no previous experience in that sector? If so, who is a likely candidate to make a successful career transition into consumer products and services?

There are opportunities, but few. Successful and very strong P&L leaders, with strong capabilities and track record in creating a world-class enterprise would be a critical asset. However, they should have some grasp of consumer behavior. A classic example of one such company that is not in the strict sense a consumer company, but understands consumers well since its customers are all leading consumer companies is Tetra Pak.

Another would be the erstwhile Johnson Diversey (Diversey Inc., now owned by Sealed Air).

How can a candidate best present him or herself to get noticed by executive recruiters in today’s marketplace?

Predominantly from his or her work at their company and business; presence in the market and as an industry leader; selectively through media; and through social media. However, it is important for the individual to be recognized for their contribution and what impact they have made to businesses and someone who is looked up to as an expert. They need to remember that at the highest levels a lot of the homework has already been done to try to learn about these individuals even before they get that first call.


Just like they need to do for their business, these individuals need to remain engaged with all their stakeholders (people) internally in the company, as well as externally – industry, market, media and the capital markets/stock exchanges. And they need to be reasonably accessible. That does not mean they need to do so in a flamboyant/high profile manner but in a studied fashion. A lot of the unshackling and learning tends to happen in real-time today and leaders stay connected to reality and people. Being distanced and removed is the single largest malaise that afflicts the corner room. A lot of leaders tend to get filtered out as feedback on them comes in patterns like: “hands-off,” “too-delegatory,” “not a peoples’ person,” “reserved” or “believes in a single/straight line of communication – top down.”



Ulrich Ackermann, TRANSEARCH InternationalManaging Partner


First of all, thank you for taking the time to speak with the AESC and BlueSteps about the consumer products and services sector trends in executive search. Would you share with us a bit about the work you do at TRANSEARCH? At TRANSEARCH we do about 15% of our business in consumer goods and retail and related services. Business was slightly positive in 2013 and we are seeing a slight increase as well for 2014. In our 2014 BlueSteps Executive Outlook Report, 51% of executives reported a positive outlook for the executive job market (an increase of 15% compared to 2013). How would you describe your outlook for the global consumer products and services sector? Globally we see a slight increase here. Internet sales will increase while traditional trade will be rather stable or declining. How would you describe the outlook for the consumer products and services sector in Germany and Europe as a whole? In Germany, we’re seeing mediocre, single-digit increases; whereas in the rest of Europe, growth will be flat. The main reason other markets in Europe will not see a major increase is due to the stagnant economy outside of Germany. Germany might still be better off, but it will not be able to stand against the lower demand in these countries in the midterm. A recent Forbes Insights study confirms that companies not taking advantage of digital technologies to improve marketing efforts are falling behind their competitors. Since digital transformation is becoming a wider issue, have CPG company hiring committees started seeking out board directors, CEOs and CFOs who are more focused on digital than they were traditionally? The need for Chief Digital Officers, or generally speaking people who implement digital tasks in their career, is strongly increasing as is the need for Chief Information Officers with a digital background. What trends are you witnessing in the consumer products and services sector as it relates to executive search? What searches are being conducted and what skills must candidates bring to the table to be considered for these opportunities? Candidates need stronger multichannel expertise in marketing, good understanding about CRM tools and have to be more and more international. How can a candidate best present him or herself to get noticed by executive recruiters in today’s marketplace? Speak in high-level forums and strive to attain good results that show that he or she is a great candidate. If you could offer one key piece of advice to today’s senior leaders, what would that be? Be a good networker and get recommendations from well-respected people.




Tim Boerkoel, CTPartnersManaging Partner, Global Head of Consumer & Retail Practice Timothy Boerkoel is a Managing Partner and Global Head of the Consumer & Retail Practice of CTPartners. In his leadership role, Tim oversees the activities of the worldwide network of professionals dedicated to these sectors, and he provides strategic management and thought leadership guidance.

Tim maintains an active search practice within the retail and luxury sectors. His search experience has spanned department and specialty stores, apparel, home, accessories, and footwear. He has recruited senior general management for publicly and privately held clients ranging from emerging companies to established global leaders. Jonathan Holmes, Korn FerryManaging Director, Middle East Jonathan Holmes is the Managing Director of Korn/Ferry International Middle East.

Mr. Holmes’ executive search career spans over 20 years and six countries, where he has undertaken general management searches across a range of geographies and industries with a focus in the consumer sector. Prior to his current position, he was the Office Managing Director for Korn/Ferry’s Seoul office for 10 years. Before Korn/Ferry, Mr. Holmes was a consultant with Carré, Orban & Partners – which merged with Korn/Ferry in 1993 – where he focused on the consumer goods and healthcare sectors in the UK. Alastair Paton, Signium InternationalManaging Partner UK and Regional Director, EMEA Alastair is Managing Partner with Signium International in the UK and is Regional Director for EMEA. Signium is one of the world’s oldest Search firms and a founding member of the AESC. Signium has more than 40 offices in nearly 30 countries.

Alastair worked for 17 years in industry, holding sales, marketing and general management roles in Europe, the Middle East and North America for two large multinationals. He moved into Executive Search in 2001 and was a founding Partner of what is now Signium UK in 2004. He led Signium’s Global Consumer Practice from 2012 to 2014.

About Our AESC Member Search Consultants




Charles Bien, Signium International Managing Partner, Greater China Charles Bien is Managing Partner of Signium Greater China, leading Greater China’s industrial search practice. Prior to Signium Greater China, Charles assumed a similar role at another global executive firm. He was Head of Human Resources at Caterpillar China and Yum! Brands, Greater China and before that, Principal Consultant at Hay Management Consultants Asia.

An experienced consultant as well as practitioner, Charles has accumulated close to 30 years of experience in executive search, corporate HR leadership, people and organization effectiveness consulting, as well as strategy consulting. Vikram Chhachhi, Heidrick & StrugglesPrincipal, Global Consumer Markets Vikram Chhachhi is a principal in Heidrick & Struggles’ Mumbai office and a member of the global Consumer Markets Practice. He has more than 15 years of experience in the executive search industry and more than 24 years of professional experience. His industry expertise includes consumer packaged and retail goods, media and entertainment, and telecommunications. He has successfully engaged with large and mid-sized businesses, both multinational as well as Indian, and helped them build management teams by acquiring critical leadership assets and capital, while completing a number of business leadership and functional head assignments. Ulrich Ackermann, TRANSEARCH InternationalManaging Partner Ulrich F. Ackermann studied in Economics and Business Administration at Tübingen University and IEP at INSEAD. He built up ELLESSE S.P.A, Italy, in Germany over a period of 7 years, followed by approximately 10 years with Adidas Group as Director, Sales & Marketing in Germany, Chairman of the Board of Adidas Austria AG and lastly CEO of Adidas - Sarragan S.A., Switzerland, with worldwide responsibility for four brands. He was furthermore a Member of the Board with Hugo Boss AG, and also the CEO of a mid-sized holding. Since 1996, he has been Managing Partner with TRANSEARCH Deutschland, and elected as Member of the Board of TRANSEARCH International Partners Ltd., London in 2000.

He was also Board member of the Association of Executive Search Consultants (AESC), New York (2002-2008), and since 2007, Chairman AESC Germany. Ulrich was listed in February 2008 edition of “BusinessWeek” among “The World’s Most Influential Headhunters”.



About BlueStepsBlueSteps is an online career management service for global senior executives. As an exclusive service of the Association of Executive Search Consultants (AESC), BlueSteps enables senior executives to make their career profile accessible to over 8,000 retained executive search professionals in more than 75 countries who are members of the AESC, and use the database as an additional resource in their candidate and source identification process.

As a member of BlueSteps, your career details will be confidentially provided to hundreds of the world’s leading retained executive search firms in over 75 countries. Benefits include:• Confidentially increase your visibility to top executive recruiters.• Build stronger connections using a fully searchable directory of executive search consultants who are AESC members.• Explore executive job opportunities being filled by AESC member executive search firms.• Elevate your personal brand.• Plan your executive career management strategy.

Join BlueSteps Today.Executives, submit your CV and career profile to BlueSteps today for a 20% discount - To redeem, visit www.bluesteps.com and use the

promo code Consumer20 at registration.

About The Association of Executive Search Consultants The Association of Executive Search Consultants (AESC) is the worldwide professional association for the retained executive search sector. The AESC promotes the highest professional standards in retained executive search consulting, broadens public understanding of the executive search process, and serves as an advocate for the interests of its member firms. For more information, or to download the AESC Code of Ethics and Professional Practice Guidelines, please visit www.aesc.org.

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