In today’s digital age, consumer packaged goods (CPG) companies must stay up do date when it comes to e-commerce trends or risk being phased out by the competition. According to a new study conducted by the Grocery Manufacturers Association and Boston Consulting Group, companies are facing a “winner-take-all” situation, with half of the sales growth coming from digital channels.
The report, “Winner-Take-All Digital World for CPG,” identifies four factors that are shaping the market for CPG companies. First, while multiple business models are emerging, only a few will be disproportionately influential. These include models advanced by Amazon (such as home delivery and Prime) and click and collect, which has proven successful in Europe and is well suited to the lifestyles of busy, mobile US consumers. Second, the game is increasingly played by new rules requiring very new skills. Third, early-adopter consumers are already settling into patterns of digital buying behavior. Fourth, and most importantly, success breeds exponential success: Once brands establish leadership positions online, they are tough to dislodge.