Friday, August 5, 2011

Online Commerce is Fastest Growing Segment for CPG

“Consumer packaged goods giant P&G has indicated a desire to source 10% of its sales online. Given that it currently sources less than 1%, that sounds like an aggressive goal but one that it is putting its formidable resources against delivering. Many other CPG companies from Kraft, J&J and General Mills to Pinnacle Foods are placing a strategic imperative on the etailing selling space,” reports Chief Marketer.

With the numerous options to sell online through retailers and the ability to sell direct to consumers through other platforms, it shouldn’t take P&G that long to reach their goal. Etailers are well positioned to deliver on convenience “and selection (the online shelf set doesn’t have to adhere to the space limits of the brick and mortar shelf).”

“Etailers can also provide a experience, enabling consumers to customize the online “shelf” in a wide variety of ways, such as by size, product feature, price, brand and manufacturer. In this way, online is not just an incremental sales channel but also strategic marketing medium that engages consumers.”

As a result, customers are responding. “Close to 50% of online shoppers have purchased personal care products online within the last six months and 40% have purchased food items, according to an etailing solutions CPG eCommerce Study developed with Catapult Marketing.”

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