The era of digital transformation is prodding an overall shift from eCommerce to digital commerce. Next-gen companies have already prepared for the big leap and thinking to leave eCommerce behind, along with their limited activations, limited consumer experience and limited data.
What is the reason behind this shift?
This is happening because what used to work in the past no longer does now. After intensive research on how customers interact and behave with products online, the current scenario forges the deduction that a simple online platform and the money spent on marketing is not enough to attract the evolving consumer. This is a semi-active mode based on the current eCommerce paradigm. This mode is lagging behind what consumers want.
Embracing this digital commerce as a more holistic way of doing business online has been the top priority of online retailers today. It’s allowing them to generate demand, control supply chains and enhance consumer experiences. They have had the privilege to better exploit social media and new consumer-facing technologies that are affecting today’s online shopper. This has also given actionable insights laying the groundwork for effective and integrated marketing.
Let us focus on a more targeted market from here. How does this affect the Consumer Packaged Goods (CPG) companies?
There has been a tremendous growth of online purchasing which gives CPG companies a larger space to develop new business models, assets and revenue streams. These revenue streams are both, in and across online and traditional channels. Some of the ways these CPG companies are generating billions of dollars in revenue are, circular economy, tailor-made and on-demand services, automated retail using AI and IoT, and subscription-based retail models with automatic renewals.
Retailers today realise that eCommerce is much more than a channel for sales. It serves as a stand-alone market for those customers who will not buy a product unless it is available online. More than that, eCommerce is a direct pipeline to the consumer and to a much better understanding of consumer personas and preferences.
With privacy concerns and security awareness rising, customers are increasingly blocking third-party tracking. With respect to this, a direct-to-consumer channel enables CPG companies to capture rich consumer data and insights that they can subsequently use to create more relevant and satisfying experiences across all channels.
Enhance interactions
Online retailers can leverage multiple touchpoints which helps CPG companies discover the role of each digital touchpoint in the consumer journey. This helps them unravel activities along the path to purchase and beyond into smaller, more manageable scenarios.
Partner with e-commerce platforms
Partnering with your competition may sound counter-intuitive at first, but CPG companies should consider developing strong partnerships with the same digital players who threaten to seize competitive advantage across consumer markets. Some CPG companies have already implemented this.
As an example, Unilever had partnered with Alibaba in order to extend its access to China through the digital native’s data-driven ecosystem. The major focus areas between these two organizations include rural China penetration, cross-border e-commerce, consumer protection and big data. The company had also managed to form a partnership with JD.com to expand its direct selling capabilities in China.
Conclusion
It is quite evident that the battle for consumers is already being fought in the micro-moments which make up each purchasing journey. The top priority for CPG companies is to expand their overall view of digital channels beyond the ‘buy’ button.
This can let them harness new opportunities for driving sales and measuring success in as many of these situations as possible. There are robust, custom WordPress development services available today that can help you build a dream website that only sells products but also experiences.
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1 comments:
This was great to read, thank you.
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