This week, CEOs from the greatest CPG companies in the world will get here in Boca Raton for The Customer Expert Group of New York (CAGNY) conference– the location where the C-Suite talks about upcoming financial investments, promising techniques and major elements affecting income.
One subject that’s guaranteed to be covered in almost every CEO’s presentation this year is e-commerce.
Let’s break down the hot button topics most likely to be on executives’ and financiers’ minds next week.
Winning the Digital Shelf
Winning online is not unlike winning in a physical retail store – it’s still about getting your brand names the finest placement at the rack (albeit a digital shelf) and having a compelling proposition in the type of fantastic packaging, such as digital content. As such, CPG brands are investing in controling the digital shelf. A current survey by e-commerce analytics platform Profitero and Kantar discovered that 72% of consumer brand names have actually devoted headcount handling their digital material across retailer sites; 62% have a digital media specialist for merchant sites and 48% have actually committed SEO groups for these websites. Including headcount alone will not be sufficient to win; groups will require analytics, information and innovation to lead them in the right direction. Nestle
‘s 2019 CAGNY presentation referenced the significance of winning the digital rack
The Death of Impulse Shopping?
Click and collect, also referred to as buy online, get in store (BOPIS), will be hot subject at CAGNY this year even if it’s not spoken about directly. The model is quickly capturing on with customers: According to expert company Cowen, 21% of the U.S. population attempted curbside grocery pickup in 2015, and the channel is now estimated to account for 70% of online grocery sales. For CPG executives, click and gather is a blessing and curse. On one hand, it allows brands to be relevant to online consumers who don’t want to pay the expense of online shipment or await it. On the other hand, it considerably restricts chances for impulse buying considering that customers can get what they require without entering the store. To survive, lots of CPG brand names will need to maker impulse purchasing in other methods, through shoppable digital ads and financial investment in being visible on emerging, on-demand delivery platforms like goPuff.
Hershey’s 2019 CAGNY presentation referenced the function of newbies like goPuff in satiated on-demand … [+]
DTC = MVP for Brands
Major CPG brands like Clorox are betting on direct-to-consumer (DTC) connections and developing those capabilities in-house. It’s clever for a few factors. DTC gives brand names more control over how products are provided and priced, helping to develop and protect brand name equity. Second, DTC permits brands to get their hands on important consumer click, conversion and search data, which retailers typically do not make readily offered. DTC brands are for that reason better able to test and discover more rapidly and get brand-new proposals out to market quicker. Disruptor brands like Harry’s, Glossier and Califia Farms have actually done an exceptional job setting the bar; standard brands should do the same if they desire to stay in the customer’s mind.
The Digitally-Enabled Supply Chain
Free one-day delivery may be a substantial benefit for customers, but for merchants and brands it implies greater costs and a hit on revenues. CPG brand names face amazing down pressure from online rate matching. At CAGNY this year, it would be fantastic for CEOs to showcase or highlight their efforts that will get rid of expense from their digital supply chain (i.e. lighter weight/ eco-friendly product packaging, rate/ pack architecture, more automation, and so on) to assist mitigate already razor-thin margins.
Given the volume of material to cover in CAGNY discussions, e-commerce discussion will be likely be restricted to a few soundbites, however with online share of grocery sales growing by 15% a year according Brick Meet Click and Walmart’s online sales growing by 40% a year, it’s difficult for CPG executives to neglect the complex digital forces disrupting their brand names.
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