Making space to grow in consumer goods

CPGs that radically rethink their foundations to operate as digital businesses can seize the opportunity to grow digital commerce.

The consumer packaged goods (CPG) industry is experiencing the largest channel proliferation and fundamental shift in the relationship between consumers and manufacturers ever. It’s a significant opportunity to rethink their role in the industry.

The role of digital is not just about transactions

The role of digital is not just about transactions. Today’s consumers move across both physical and digital touchpoints all the time, and customers are no different.

They want the same seamless experiences in their professional dealings with CPGs that they have as consumers – and most of them (87%) believe that that answer is in B2B commerce solutions that mimic the B2C experience.

Digital engagement is the single biggest driver of commerce online, and in the store. Welcome to the new era of commerce.

92% of consumers across 11 countries purchase through digital commerce channels today.
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The Social Commerce Solution

Weaving commerce into the fabric of everyday life
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What does this mean for the C‑Suite?

The shifts in CPG commerce are a departure from how things have always been done. Taking advantage of them demands key decisions from all leaders – and changes across the business.

CEO/COO

  • What capabilities do we need to drive profitable growth?
  • How do we raise our digital commerce IQ and acquire and retain talent?
  • How do we become a more data driven, systematic and agile organization?

CMO/CDO

  • What percentage of our customers’ shopping is online—and in which channels?
  • Are we keeping pace with social commerce trends?
  • Do our operating model and roles support our brands’ online presence?

CSO

  • Which channels/partners should we prioritize by market?
  • How do we digitize the fragmented trade route to market for growth + efficiency?
  • How do we evolve our RGM strategy to support digital commerce?

CIO/CTO

  • How do we design our commerce architecture for growth?
  • What delivery model supports our brands’ B2C, B2B and B2B2C needs?
  • How do we build our talent strategy using both internal and partner resources?

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What leaders do differently

Own the brand experience in commerce

With commerce being an increasingly critical consumer engagement channel in CPG, the brand experience should be consistent in every relevant channel. Every time.

Build better for the business of commerce

CPGs can make change happen by building the technology foundation to be more data-driven and integrating processes to be more agile.

Become digital on the outside – and the inside

It is key for CPGs to join up Marketing, Sales and Commerce, and the rest of the organization to operate with true agility.

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Control your own commerce future

Commerce is pushing CPGs to be more digitally enabled. CPGs can continue to follow where the wave of change takes them, or they can gain control by developing a strategy that addresses these fundamentals:

Pinpoint where to play

Avoid the trap of showing up equally in every channel. CPGs should develop their channel strategies to understand the value potential of every channel by category, brand and geography.

Supercharge operations

Stabilize the operating model. It’s not about integrating functions. It’s about finding seamless ways of working among functions and integrating planning processes.

Seal shut the talent gaps

Go beyond reskilling employees, enabling them with tools and recruiting digital talent. Educate everyone about the commerce space and explore alternative strategies to get the right resources fast.

Go with big, bold tech

Develop a platform ecosystem that integrates across the value chain and business functions to support omnichannel experiences for consumers and customers.

Get rid of guesswork

Build a secure consumer and customer data foundation and analytics enabled by cloud. With this foundation, CPGs can act like industries that have embraced data-driven and dynamic operations.

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Meet the team

Frequently asked questions

Digital commerce is the buying and selling of products or services through digital channels. This includes selling to either consumers or customers through direct or indirect channels.

Examples include direct-to-consumer channels, such as branded websites that sell directly to consumers and indirect-to-consumer channels, such as retailer, marketplace, and social sites where brands sell through the channels to consumers. Equivalently there are both direct and indirect to business channels, such as brand owned B2B portals and wholesaler portals respectively.

Digital commerce has created more options for consumers and customers to buy what they need on their terms. In addition, it has given brands a more direct relationship with consumers and customers through the digital pages and storefronts they now manage. It has also created an opportunity for material growth for the brands that rethink how they engage consumers and customers and operate as digital businesses.

The scale of digital commerce can be a significant challenge given the growing responsibilities for brands to own their experiences across all retailers, such as the product descriptions, images, retail media, and consumer feedback. In addition, digital commerce doesn’t create more consumers or needs, but it does create more channels which increases costs for the sales of those same products. This means brands must automate and systematize their capabilities to ensure they win market share while protecting margins.

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