8 key trends in the digital transformation process of the consumer goods sector
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Companies in the consumer goods sector are undergoing an unprecedented transformation, driven by the preferences of an increasingly digital customer, who pays particular attention to the immediacy, convenience and price of online purchases, often to the detriment of traditional channels. In this sense, VTEX has developed a Report on the main trends in consumer behavior that are driving new growth opportunities for brands in the Consumer Packaged Goods or CPG (Consumer Packaged Goods) sector.
According to the data from the 2020 Annual e-commerce Study led by the e-commerce Commission of the communication, advertising and digital marketing association IAB Spain, 72% of the Spanish population currently uses the Internet as a shopping channel. Specifically, the number of consumers who claimed to have purchased in recent months solely online increased by 23% compared to 2019, while physical store consumers decreased by 25%. This figure is also reflected in the United States, where e-commerce was the main driver of growth in early 2020. With the arrival of COVID-19 and the pandemic, the phenomenon has evidently accelerated, becoming a true lifeline for companies. companies and end users; The user base has expanded and the frequency of spending by buyers already acquired on the web before the pandemic has increased. IAB Spain also concluded that 3 out of 4 online buyers seek and formalize the purchase on this channel. Specifically, Marketplaces continue to be the reference for product information among users, since 9 out of 10 use them as price comparators.
While retail and wholesale has long evolved into e-commerce and direct selling, the pandemic has clearly accelerated the pace of transformation by driving direct-to-consumer (DTC) channels. COVID-19 has had an abrupt impact on retail sales, forcing retailers and brands to make significant changes to business models.
What does this mean for consumer goods manufacturers today?
The massive digitization of consumer behavior, together with the growth of e-commerce as a lifestyle after the pandemic, have undoubtedly opened new scenarios for those companies in the sector that are able to respond strategically to change and develop their business proactively and continues, putting the consumer at the center.
Eight major trends are influencing both the way consumers and businesses interact with each other and the approach with which brands are rethinking their sales models and strategies for the coming years:
The figure of the buyer and that of the consumer merge: due to digital commerce, the consumer and the buyer have now merged into a single identity, thanks to the phenomenon that has seen the user increasingly finalize online purchases of any type of SKU (stock-keeping unit).
Amazon's 3P Effect : The growth of Amazon's marketplace model has raised buyers' expectations for retailers and brands to deliver the benefits of a wide variety of offerings, competitive pricing, and merchant offerings.
Attention to the participation of users, where and how to involve them: with the reduction of the consumer's attention span and purchase routes that are not always linear, brand advertising, now more than ever, must tell a story quickly, concisely and compelling to attract and engage consumers to discover more.
Proliferation of DTC (Direct to Consumer) channels and markets: the new functionalities and technological platforms now allow companies to collect, analyze and take advantage of customer data to improve their commercial offering and encourage direct and effective customer participation.
The "Retail" Approach to Business: Some small brands have begun to explore new kinds of strategic approaches to their business. From the analysis of the income statement to the planning of offers and advertising campaigns, everything revolves around specific consumer segments and the ability of Buy Mobile Database to personalize and create customer loyalty models.
Support from unconventional technology partners : New skills are needed in the retail sector, in addition to traditional ones, creating opportunities for CPGs to collaborate with new technologies and partners to sell and interact directly with consumers and launch new ones. types of consumer loyalty programs to develop new strengths.
The resurgence of technology as a resource, beyond its function as a service : Companies in the sector have traditionally viewed IT consulting organizations as mere providers of services, technical support and software. Today the role of IT has become critical to future leadership with a new, more central role to play.
The limited ability to measure success: the modern consumer is no longer used to buying only through easily Best database provider
measurable channels. This means that brands that do not adopt innovative business models or systems have to settle for reduced visibility (even 50%) of sales trends, that is, limited to the physical channel.
The ability to actively follow these trends and respond to the change already taking pl