New research from Capgemini Consulting has revealed that if the new EU General Data Protection Regulations (GDPR) were put into place today that the global consumer products industry could face fines of up to $323 billion.
To obtain its research, the firm interviewed 300 managerial-level executives in the consumer space whose combined revenues total over $756 billion. Capgemini then used this data to compose its latest report titled Consumer Insights: Finding and Guarding the Treasure Trove.
The research shined light on how consumer product companies often rely on data about consumers to enhance their marketing campaigns, cut costs in supply-chain operations and to roll out new products or tweak existing ones.
The problem though, is that the way in which these companies are collecting data on consumers could be quite problematic if the GDPR was in place today. Capgemini's research found that a staggering 90 per cent of companies have suffered from a data breach and that almost half were not in compliance with industry standards.
The GDPR would be able to fine these companies up to four per cent of their annual revenue for data breaches which means that if it were in place today, the global consumer products industry could face penalties of up to $323 billion in a worst-case-scenario. This would no doubt be a costly affair but it could even cripple businesses without proper security measures in place.
Capgemini believes this situation can be rectified through a structured approach, saying: “Consumer product companies need to fix their governance structures for insights, develop the right capabilities and establish the role of a chief privacy officer.
"The benefits of consumer insights are there for everyone to see, but sustaining value over the long term will require consumer products companies to focus on privacy issues as a matter of urgency.”
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