CPG – The Grocery Experience is Changing Fast
The overall grocery experience continues to rapidly evolve affecting the ways that companies specializing in Consumer Products (CPG) operate. The first general stores consisted of an owner handpicking a list of requested items on behalf of the customer. The general store has come a long way and evolved into expansive supermarkets where shoppers can visit a bakery, butcher, produce department, (and more) all in one location. Consumers can expect more exciting changes as the industry adopts new ways to make the overall grocery shopping experience more personal and convenient. Here are some interesting ways the market is evolving to meet the demands of their customers.
CPG companies are encouraging retailers to provide the necessary technology, like electricity and wireless connectivity, to better promote their products in store. Amazon continues to set the standard regarding the use of this marketplace tech, forcing many grocers in the industry looking for new ways to keep up. So, a growing number of them are responding by upgrading their own e-commerce platforms, or even utilizing shelf-scanning robots. Digital shelf displays continue to grow in popularity due to the number of consumers who use their smartphones while shopping. Retailers will continue to advance their technology based upon the category research shared by the biggest CPG companies.
Faster Front Ends
The checkout process in grocery stores is one of the only things that has remained virtually unchanged over the years. The inconvenience of waiting in potentially long lines in supermarkets has pushed more consumers towards the e-commerce market. But, a growing number of retailers are focusing more effort and resources toward bridging the technological gap between online and in-store shopping by developing new checkout systems, self-service kiosks and apps. Some major retailers have already tested and introduced apps that allow customers to skip the checkout lanes in their stores.
Grocery Shopping in the Future
Although pricing concerns and convenience will inevitably remain in high demand in the future, the consumer products industry will also need to accommodate consumers as their focus shifts toward healthy, environmentally sustainable, and ethically created food items. A growing number of future consumers will prefer those products that positively benefit their personal nutrition and the planet, rather than simply purchasing products that taste the best. This trend will spawn more small-scale farmers who produce organic food products. To combat the fear that many consumers may have regarding potentially unsafe industrialized farming practices, CPG companies are partnering with grocery retailers to develop two-way telepresence systems that enable shoppers to connect with experts like nutritionists, chefs, or farmers to inquire about any concerns that they may have regarding produce items being sold in the store.
The shopping experience has come a long way since the neighborhood general stores from the past. With the infusion of new technology, faster & more convenient check-outs, and the availability of more natural, organic and sustainable products, the grocery shopping experience continues to change to meet the evolving demands of customers. Consumer products companies are helping to lead the charge by listening to what the market wants and delivering on those requests.
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