Sunday, March 11, 2012

Brands Skip Retailers, Go Direct to Consumers.

An August 2010 poll by RetailWire asked if there was a greater upside for manufacturers who went the consumer-direct route versus those who only sold products through retailers. Sixty-eight percent of respondents said brands going the consumer-direct route had a much or somewhat bigger upside than those selling exclusively at retail.

Now comes a new study conducted by the Economist Intelligence Unit (EIU), sponsored by Oracle Consumer Goods, that found more manufacturers are exploring new ways to create direct relationships with consumers.

According to the research:
  • The percentage of manufacturers selling directly to consumers will increase from 24 percent to 41 percent over the next year.
  • Manufacturers are looking to improve interactions with consumers through social media. Activities planned include promotion (74 percent), consumer feedback (63 percent) and customer service (62 percent).

AaramShop provides CPG / FMCG brands with an excellent opportunity to reach out directly to consumers and leverage the neighborhood stores to complete the sales loop, thereby moving away from the need to deep discount the brand. 

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