Consumer and Retail Sector: Innovation and sustainability as keys to the sector’s success

Consumer and retail companies are adopting sustainable practices to meet growing environmental demands. From the use of recyclable packaging to the implementation of renewable energies and the active management of the upstream supply chain, the sector is reinventing itself to improve efficiency and reduce its environmental impact. Nearshoring, which reduces the carbon footprint and optimizes the supply chain, is establishing itself as a key trend in this transformation.

In the global corporate landscape, the development of business practices toward more responsible models is a trend that is gaining momentum. Companies, regardless of their size, integrate advanced technologies to optimize resource management and improve operational efficiency, in addition to meeting the sustainability standards and requirements of regulators and the market.

In the case of Consumer and Retail companies, a sector characterized by its diversity and its close relationship with the habits and needs of consumers, the range extends from companies distributing basic products such as supermarkets to entertainment and hospitality services or textile chains. For all these companies, sustainability has become a determining factor for the success of the business. They work to adopt sustainable practices throughout their operations, from using recyclable packaging or renewable energy to actively managing the upstream supply chain to measure how the carbon footprint of suppliers impacts the business, in order to meet consumer expectations and increasingly stringent environmental regulations.

In this respect, BBVA CIB is able to offer specialized advice and financial solutions that facilitate an effective transition for companies in this sector, which is so special because of its heterogeneity. With a strategy that facilitates the connection between markets, BBVA CIB is configured as a key facilitator in the strengthening of commercial practices, through efficient solutions that respond to the specific needs of each type of business.

Globalization is key to the sector's growth

In this context, BBVA CIB has adopted a strategic model that focuses on the entity's global nature and the advantages offered by its cross-border capabilities to boost the strengths of these companies. According to Iñigo Leivar, Global Sector Head of Consumer & Retail at BBVA CIB, "We have an approach based on specialization by industry and geography, which allows us to provide significant value by connecting developed and emerging markets, facilitating cross-border transactions, and financing sustainable projects."

In relation to the sustainability of the sector, one of the main trends is nearshoring, which offers financial benefits to the business itself by reducing supply times and avoiding the political instability of some regions in Asia or the Middle East, as well as offering the aforementioned environmental advantages.  With rising energy costs and volatility in emerging economies, moving production closer to the end market is becoming an increasingly attractive option that improves the sustainability of the entire value chain and reduces the carbon footprint of the final product: "Through this trend, we can connect our customers with buyers and sellers in the global market, fostering business relationships based on sustainable practices. The bank has been proactive in financing the sustainable supply chain through various strategies, including project financing and collaboration with other strategic players. Through our geographical presence, knowledge of local markets, the expertise of product teams, and presence in regions such as the United States and Latin America, we position ourselves as a differential option for companies and entities in the Consumer & Retail sector," Leivar added. 

BBVA CIB is positioning itself as a leader in the Consumer and Retail sector through a strategy of specialization, sustainability, and expansion in key markets. Its business model, based on the integration of geographic, product, and industry knowledge, allows it to offer customized and high-quality solutions to its customers. With an approach based on the adoption of global trends and their application at the local level, BBVA CIB seeks to lead the transformation toward a connected future. This commitment to innovation and sustainability, coupled with its strong presence in emerging and developed regions, ensures that BBVA CIB is prepared to meet the challenges and seize the opportunities of the Consumer and Retail sector in the years to come.