The Consumer Packaged Goods (CPG) industry continues to evolve from being only a commodity marketplace with brands in brick and mortar stores competing for shelf space. A growing number of companies are looking to emulate what successful e-commerce companies like Amazon are doing to accomplish their respective goals in the market. Advancements in everything from mobile technology to supply chain management are now allowing more companies to sell their goods direct-to-consumer.
CPG Industry Evolution
To say that Amazon has had a significant impact on the CPG industry would be an understatement. It has basically revolutionized the entire industry by bringing products online that were previously only offered in traditional brick and mortar stores. One of the reasons why Amazon continues to reign over the e-commerce market is through its effective direct-to-consumer sales model. They are still accomplishing this by offering members a variety of convenient programs including:
- Amazon Prime Pantry
Allows customers to skip the trip to the traditional grocery store and shop online for snacks, breakfast foods, beverages, beauty and personal care items, and household products.
- Prime Now
Amazon’s new delivery service offers a vast selection of items in dozens of categories, including household items, groceries, electronics, gifts, seasonal items, and more. Plus, members can also get restaurant and local store delivery in select cities.
- Amazon Dash
Dash Buttons are shortcuts to quickly find and reorder your favorite products on Amazon’s mobile app and website. The free buttons are available for tens of millions of products that ship with Prime.
CPG Rising to the Challenge
In an effort to compete, CPG manufacturers are focusing more of their resources on enhancing the overall mobile commerce experience. This is accomplished through bolstering brand engagement, simplified ordering and enhancing overall convenience. Since most modern customers want effortless mobile experiences, they are demanding advanced search capabilities along with simple checkout options. CPG companies are also integrating loyalty card programs and coupons to promote brand engagement and gaining valuable feedback from their customers in the process.
From voice-assisted search to autonomous drone delivery, the use of cutting edge technology within the Consumer Products Industry has become essential in order to stay relevant and remain competitive. Another valuable technique that enables CPG companies to sell directly to their end users is by offering on-demand and subscription based e-commerce services. Not only does this help increase repeat business, but it can also work to enhance brand loyalty. Amazon was also one of the pioneers in this space with the development of its Dash Buttons. Amazon impacted the CPG industry by raising the bar to an unforeseen level, forcing modern brands to rise-up to the challenge by incorporating direct-to-consumer channels that offer the ideal mobile experience.
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