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Retail Intelligence: The opportunity for CPG companies to sell direct

August 3, 2013
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The latest report from The Grocery Manufacturers Association and PriceWaterhouse Coopers US discusses how CPG companies now have a huge opportunity to connect with consumers directly. As shoppers increasingly choose to bypass the physical store for all kinds of products and information, the findings also emphasize how consumers are now less willing to pay on impulse and are more willing to hunt for ‘value’.

CPG companies have long sought their own direct dialogue with consumers. The past five years have seen the rise of the empowered digital consumer, armed with the ability to shop anytime, across both physical and virtual channels.

The report “Growth strategies: Unlocking the power of the consumer” highlights the enormous opportunity this now creates for both CPG manufacturers and retailers. More than 40% of CPG companies surveyed expect to sell products directly to consumers in 2013, a significant jump from 24% in 2012.

“Fifty-two percent of US consumers are already buying directly online from brands they trust, proving that CPG companies now have far greater opportunities to walk alongside their shoppers in real time while driving sales of existing and new products”, according to Steven Bar, PwC’s US leader.

The findings discuss how selling direct to consumers is a powerful vehicle for testing new products and reaching out to consumers faster and more effectively – making the retail store aisle no longer the last mile in the purchase journey. There are opportunities to enhance sales with e-commerce based on the product category, price, brand loyalty and convenience.

Pamela Bailey, President of The Grocery Manufacturers Association, said: “This report shows that in the midst of a challenging economy, the food, beverage and consumer products industry continues to show great resiliency. By providing consumers with innovative products and convenient, cutting-edge shopping experiences, CPG companies are well positioned to enhance consumer loyalty and profitability.”

PwC’s ‘Demystifying the Online Shopper’ report from earlier this year revealed how a lower price is the leading reason consumers choose to purchase direct from brands. One of the key takeaways from this latest report is that consumers are less willing to pay on impulse and more willing to hunt for ‘value’. According to Colgate-Palmolive CFO Dennis Hickey, “How you reach the consumer, how you interact with the consumer, is completely different. The consumer today is more discerning, they are seeking greater value; however value does not always mean lowest price. Consumers are willing to pay more for those products that meet their specific needs or desires.”

Profitero provides price intelligence data to both retailers and manufacturers, delivering competitor prices, promotions and full product assortments every day. With Profitero, retailers and brands are able to benchmark their complete product range, enabling them to deliver greater value to their customers. For more information, visit or contact us at

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About Profitero

Pricing intelligence company Profitero provides retailers with actionable price intelligence data, monitoring over 50 million products across 4,000 eCommerce retailers every day, observing pricing, promotions and stock availability. We work with the world’s leading retailers, enabling them to acquire new customers and grow profit margins by monitoring and responding to changes in competitor pricing and promotional activity as they happen. For more information on Profitero price intelligence and competitor monitoring, visit or email

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