Thursday, November 25, 2010

Why Packaged-Goods Players Are Bullish on E-Commerce


Marketers Hope to Regain Touch Ceded to Retailers and 'Lost' With End Consumer

By number of shoppers and sales, packaged-goods e-commerce remains decidedly tiny. But Amazon's acquisition Nov. 8 of Quidsi-owner of Diapers.com, Soap.com and the newer BeautyBar.com for a reported $545 million in cash and debt has given the space some big-money validation. It also reflects outsize interest in the channel by packaged-goods marketers, dozens of which have opened their own e-stores or increased focus and spending on e-commerce in the past year.
"This is an emerging trend for branded manufacturers in particular because they believe, rightfully so, that they've lost touch with their end customer, kind of ceded that to the retailer," said Pat Conroy, vice chairman and U.S. consumer products leader of Deloitte.
The same desire to overcome or manage the separation of CPG brands from their end consumers is fueling interest in the other fastest-growing areas of marketing outlays-shopper and social-media marketing. Indeed, e-commerce, shopper, search and social-media marketing increasingly are fused in many programs, such as Procter & Gamble Co.'s move in September to open e-commerce for several brands via its Pampers Facebook fan page with fulfillment of orders from Amazon.com.
Read the full article here.

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