A new report from global research firm Nielsen examines the impact of digital on consumer packaged goods (CPG).
eCommerce in the CPG sector is estimated to grow at the rate of 25 per cent by the year 2015. For such product lines, online shopping will not completely replace trips to stores in the hear future, says research group Nielsen. However, digital will continue to play an increasingly important role in this area in the coming years, according to a new report by the company.
“Manufacturers and retailers will benefit from examining both the marketing and the sales/eCommerce opportunity afforded by digital,” says Nikhil Sharma, vice president for consumer & shopper analytics at Nielsen. In an industry with modest growth like packaged goods, eCommerce is likely to grow at the expense of more traditional channels, and may even be a risk to some businesses unless properly addressed, he explained.
The keys to success in the digital shopping environment is understanding shopper needs, how a product category gets shopped and “the digital touch-points that influence shoppers’ decisions along the path to purchase”, said Jeanne Danubio, senior vice president for consumer & shopper analytics at Nielsen. “We have identified two barriers and two enablers that translate into convenience, choice, and price-value for a shopper.”
The online shopping environment also offers the opportunity for retailers and manufacturers to gather pricing intelligence and using this competitor monitoring information to grow sales and profit margins in this very competitive market. (Oct 30)
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