The future CMO in South Africa’s retail and FMCG industry

The chief marketing officer (CMO) role is undergoing a fundamental transformation, with even more shifts at play within the fast-moving consumer goods (FMCG) and retail sectors. Driven by changing consumer preferences, technological advancements, and channel complexity, success demands agility and innovation, all delivered at the pace of culture.

Essential skills for the modern CMO are:

Data-driven decision-making

In the digital age, data is the backbone of all marketing strategies. CMOs must be experts in data interpretation, consumer behaviour analysis, sales data, social media insights and market trends to make informed decisions. Understanding how to leverage tools like predictive analytics, AI and machine learning is essential in shaping future marketing campaigns and driving business growth. Marketing strategies are increasingly now refined in real-time to optimise campaigns and deliver more personalised experiences. A deep understanding of consumer data and its ethical use will be crucial in fostering trust and long-term brand loyalty.

Customer-centric mindset

The customer is at the heart of everything in the retail and FMCG industries, and this will only intensify in the future. The CMO must go beyond demographics and embrace psychographics, sentiment analysis and evolving consumption patterns. Understanding the customer journey is paramount. CMOs need to design experiences that cater to the desires of the modern consumer, taking into account personalised product offerings, convenient purchasing processes and sustainable or ethical options. This requires strong empathy, cultural awareness and a focus on brand authenticity.

Agility and adaptability

We are in an environment where consumer behaviours and trends can change overnight, and shifting global geopolitics can rapidly impact brands and even entire economies. The CMO of the future must be highly adaptable and make risk-based decisions on the fly. This includes the ability to pivot marketing strategies rapidly, trial new channels, or adjust messages based on real-time feedback. Whether responding to an unforeseen global crisis, a viral social media trend, or a competitor’s move, adaptability is essential.

Tech savvy

Importantly, CMOs must be comfortable navigating the landscape of marketing technologies, from new social media platforms and performance marketing to augmented reality and virtual reality experiences. The integration of technology into marketing will continue to deepen. CMOs must not only be aware of emerging technologies but also be proficient in leveraging them to drive business results. From AI to blockchain, the future CMO needs a deep understanding of the tech stack and how to use these digital tools to enhance customer engagement, optimise supply chain logistics and streamline product innovation.

Strong leadership and cross-functional collaboration

Marketing has become increasingly intertwined with other areas of the business, from supply chain and operations to IT and customer service. The future CMO must be an exceptional leader who can drive collaboration across departments. In the retail and FMCG industries, this will be key to ensuring a seamless omnichannel experience and consistency across both physical and digital touchpoints. The CMO must not only lead their marketing teams but also foster a culture of innovation, teamwork and shared success that aligns with broader business goals.

Creativity and brand storytelling

While technology and data are constantly advancing, the CMO of the future must remain capable of crafting compelling brand stories. In the FMCG and retail industries, where products can often be similar or interchangeable, strong brand differentiation through creative storytelling is the magic ingredient that sets successful brands apart. Whether through experiential marketing, immersive campaigns or influencer partnerships, the CMO must be able to build connections that drive engagement, loyalty and advocacy.

Sustainability and ethical leadership

Even as it seems that some parts of the Global North are rejecting sustainability as a platform, it is becoming an increasingly important issue for South African consumers, especially among younger generations. CMOs must develop a deep understanding of ESG principles. In the retail and FMCG sectors, the environmental impact of packaging, sourcing and manufacturing will continue to attract scrutiny, and CMOs must lead efforts to create more sustainable business practices while also ensuring authenticity in their communication efforts.

Digital-first thinking

The retail and FMCG industries have experienced a massive shift towards digital channels, accelerated by Covid. The CMO of the future will need to embrace a digital-first mindset that integrates e-commerce, social media, mobile apps and online communities into their marketing strategies. This involves understanding the nuances of digital advertising, search engine optimisation and social media algorithms, and how to foster meaningful interactions with customers through digital channels. The ability to develop and execute a holistic digital strategy that delivers a seamless personalised customer experience across all touchpoints is now a must-have CMO requirement.

Entrepreneurial mindset

CMOs must behave like entrepreneurs, looking for new opportunities to innovate and disrupt market norms. They should be comfortable with risk-taking while still having a firm grasp on budgets and complete oversight and responsibility for their profit and loss. In a competitive landscape, staying relevant requires more than just industry knowledge or technical competence; it requires the X-factor that the entrepreneurial attitude brings to a business.

The role of the CMO in the retail and FMCG industries is growing, with the next generation of leaders needing a diverse and evolving skill set to thrive. The future CMO must be a master of data, technology, creativity and leadership, all while maintaining a relentless focus on the customer and shifting market dynamics.

Guy Lundy is practice lead at Spencer Stuart, where he has supported both multinationals and JSE-listed companies in their CMO searches and succession planning.

 The big take-out: The next generation of CMO leaders must be masters of data, technology, creativity and leadership while maintaining a relentless focus on the customer and evolving market dynamics.