This document discusses key findings from an IBM Consumer 2020 Research Study on consumer priorities and purchasing habits. The study found that: 1) Sustainability has reached a tipping point, with 57% of consumers willing to change habits to reduce environmental impact and 73% seeking transparency. 2) Trust is a top criteria for brand selection, with 84% of consumers indicating trust is important. Transparency can help brands build trust. 3) Consumers now shop in "micro-moments" - whenever inspiration strikes - with 71% shopping occasionally and 35% shopping weekly or more in short sessions.

1. Trust in Retail
Why Sustainability,
Accountability and Traceability
are Critical to Brand Belonging
Let’s put
smart
to work ™
Adam Cairns
Vice President Sales, Inventory &
Operations Planning, Walmart US
Moderated by Luq Niazi
Global Managing Director
Consumer Industries
AgriBusiness, Consumer Products, Retail
Marissa Pagnani McGowan
Senior Vice President, Corporate
Responsibility, PVH Corp.

3. 3
We surveyed
18,980
consumers
across 28
countries to
learn how
consumers are
evolving in
2020 and
beyond
IBM Consumer 2020 Research Study

4. 4
IBM Consumer 2020 Research Study
The research identified four “new” consumers
that emerged in 2019:
Today, more than ever
before, consumers are
prioritizing brands that are
aligned with their core
values when making
purchasing decisions, and
they’re willing to pay
more, and even change
their buying habits, for
brands that get it right.
Each group represents different areas of focus and degree of
willingness to support CPG brands.

5. 5
Sustainability has reached a
tipping point …
As consumers increasingly embrace social causes, they
are increasingly seeking products and brands whose
values align with their own
57%
of surveyed consumers
globally are willing to
change their purchasing
habits to help reduce
negative environmental
impact
73%
of consumers indicated
that transparency and
traceability are important
to them. And of those
who indicated this is very
important, 71% are willing
to pay a premium for full
transparency.
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Source: IBM Institute for Business Value, Consumer 2020 research study

6. 6
Brands and retailers need to understand what each area’s consumers care
most about, which includes knowing the sustainability sophistication of various
markets
IBM 2020 Consumer Research Study

7. 77
Trust is a top criteria when
consumers are choosing a brand
IBM Consumer 2020 Research Study
84%
Consumers indicated that
trust is important when
choosing a brand
Transparency can help brands to
build trust among consumers
57%
Consumers indicated that
transparency and traceability
are important to them
73%

8. 8
… so does micro-moments
Rather than being a planned, discrete activity, today’s
always-on consumers now shop whenever and wherever
the mood strikes them in micro-moments —and usually
while carrying other tasks in their daily life
71%
Of consumers shop in
“micro-moments”
overtime
35%
of consumers shop in
“micro-moments” at least
weekly and up to multiple
times daily
Source: IBM Institute for Business Value, Consumer 2020 research study

9. • Sustainability is a consumer priority
across generations and geographies,
and is good for business
• Solutions to improve sustainable
buying decisions and traceability are
ready to implement now
• Addressing sustainable buying
decision ”in the moment” is going to
be essential for making a difference
Actionable Takeaways from this session:
Let’s put
smart
to work ™