Tuesday, December 20, 2011

Brands and Consumers Make Online CPG Sales a Reality.

Despite early failed attempts at selling consumer packaged goods (CPG) online—who can forget Webvan or Pets.com?—sales have been steadily increasing since the middle of the last decade. Online sales of everyday staples more than doubled between 2006 and 2010 and are expected to double again by 2014.

However, online CPG sales still only account for 2% of the category’s sales overall. But the potential market is vast—and valuable.

“CPG brands have begun to recognize the possibilities of direct-to-consumer sales,” said Krista Garcia, eMarketer analyst and author of the new report, “Driving CPG Sales Online: Brands Get Closer to Consumers.” “Larger, more established manufacturers are creating their own ecommerce solutions, while many others have begun partnering with pure-play sites devoted to selling CPGs online.”

AaramShop has approached CPG sales online with its unique online + offline model and currently enables over 725 neighborhood retailers with web-store fronts where the consumers can place their orders for grocery that are delivered in a matter of hours and without the substantial investments into the infrastructure and logistics, thus ensuring that the consumer gets access to his preferred brand with the added ease of the web. 

Read this full write-up at emarketer here and also access the full report.

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