Strategyand E Commerce And Consumer Goods Essay

Submitted By Sira-Chankachang
Words: 4638
Pages: 19

E-commerce and consumer goods
A strategy for omnichannel success

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About the authors


Mexico City

São Paulo

Behdad Shahsavari
+31-20-504-1944 behdad.shahsavari

Carlos Navarro
+52-55-9178-4209 carlos.navarro

Fernando Fernandes
+55-11-5501-6222 fernando.fernandes


New York

Steven Veldhoen
+86-10-6563-8300 steven.veldhoen

Matthew Egol
+1-212-551-6716 matthew.egol


Bart Sayer
+1-212-551-6447 bart.sayer

Christopher Perrigo
+1-312-578-4692 christopher.perrigo
Richard Rawlinson
+44-20-7393-3415 richard.rawlinson

Arun Rajagopalan
+1-212-551-6511 arun.rajagopalan

Matthew Egol is a partner with Strategy& based in New York. He leads the firm’s work in shopper marketing, and specializes in strategy and capability development for consumer brand marketers, marketing services firms, and media companies. Arun Rajagopalan is a principal with Strategy& based in New York. His expertise includes go-tomarket models, channel strategies, pricing, and distribution for consumer goods, retail, and technology companies.
Bart Sayer is a partner with Strategy& based in New York. He assists consumer packaged goods manufacturers and retailers with their go-to-market sales and marketing strategies.

This report was originally published by Booz & Company in 2012.


Executive summary

The rapid adoption of digital technologies and evolving shopping behaviors are transforming e-commerce into an essential element of omnichannel success in the consumer packaged goods (CPG) industry.
To win over digital shoppers and enhance collaborative relationships with pure-play online and clicks-and-bricks retailers, CPG manufacturers need to build strong digital capabilities to drive engagement and conversion across the entire path to purchase. Indeed, the benefits of an investment in e-commerce include not only a larger share of the relatively small but fast-growing online markets in many
CPG categories, but also a greater influence over traditional retail sales.
Manufacturers should consider several key questions to prioritize the right opportunities in e-commerce and identify how e-commerce strategies best fit within their overall digital marketing agenda. Based on their specific strategic choices, they can then identify the partnerships, investments, and organizational structure best suited for successful implementation.



The e-commerce imperative

E-commerce has already transformed a number of industries, including consumer electronics, apparel, and entertainment. It has had less impact to date on consumer packaged goods (CPG) categories overall, but that is changing quickly as the mass adoption of digital technology leads to fundamental changes in consumers’ shopping behaviors.
Tablets and smartphones are making it easy for consumers to shop for products whether they are on the couch, on the go, or in the aisle. These devices are blurring the line between browsing and shopping by allowing consumers to access information, compare prices, and make purchases almost instantaneously. As a result, CPG manufacturers must take full advantage of new online platforms, including those owned by retailers, to get their products in front of shoppers earlier than ever before — in some cases, even before consumers explicitly express their intent to buy something.
Overall, e-commerce still