Wednesday, July 17, 2013

40% of CPG Brands Plan to Sell Products Direct-to-Consumer

Tresemme "Buy Now" Feature on Their YouTube Channel
CPG brands could find leveraging digital to build out their direct-to-consumer process to be an incredibly successful strategy for creating new growth. According to a recent report, “Growth Strategies: Unlocking the Power of the Consumer,” by the Grocery Manufacturers Association and PwC, more than 40% of CPG companies plan to sell products directly to consumers this year, finding direct-to-consumer effective for testing new products and growing their consumer base.

Digital channels and mobile are important in the direct-to-consumer process, and are rewriting the rules of retailing for CPG brands. Those that provide their consumers with an innovative shopping experience can very well increase loyalty and profitability.
Shoppable videos are just one example of a strategy very close to a direct-to-consumer model. While retailers like Neiman Marcus have used shoppable videos in the past to allow consumers to buy clothes as seen in brand videos, CPG brands are now taking part.


Tresemme released shoppable videos on their YouTube page last month via Google’s “channel gadget” shoppable video technology. Tresemme’s demo videos feature products users can click on for more information and to buy directly from a selection of retailers. Although the shopping process can only occur within the brand’s YouTube channel and does not work when embedded outside of the page, it has potential to perform well with Tresemme’s 2.7million subscribers.
The new technology shortens the path to purchase. Users can easily go from watching a how-to video to finding a retailer who carries the featured product and making a purchase. Now, video can translate into sales.

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