To grow e-commerce, CPG companies must align digital with brick-and-mortar in an ‘omni-channel’ approach that maximizes consumer brand experience.
Growing market share through e-commerce requires an ‘omni-channel’ approach. Consumers increasingly regard digital and conventional channels as inter-changeable. In order to thrive in this disruptive context, companies must offer consumers a consistent, seamless message, content, and shopping experience across channels.
Although consolidator e-Retailers (e.g. Amazon.com) constitute the principal source of CPG e-commerce, companies have been slow to provide them with the necessary digital support and collaboration. There is an immediate and long-term cost to such inaction. Companies that fail to become digitally pro-active are likely to lose market share to more aggressive competitors.
To win in digital, which is driven by demand ‘pull’ driven rather than product ‘push,’ companies must make the desires of the consumer a true top priority. They may even want to think about their business differently. For instance:
Processes must be sufficiently agile to serve much more narrowly defined market segmentations whose taste and preferences can quickly change.
Traditional supply chains and logistics, which evolved to serve big box stores, will have to adjust to service individual consumers making single buys of highly personalized products.
Strategy must become attuned to offering ‘anytime/anywhere’ shopping.