#72-CPG- The present and the future disruption?
Digital Branding, Omnichannel, and Online Community are the Future of CPG
What has changed?
CPG, FMCG, brands need to make online communities around their brand and take a digital channel first approach along with defending their retail sales. Community and the online brand engagement is the only way for big brands to stay relevant. Beverages and brewery brands need to intelligently spend their marketing dollars on reinventing their brands to the digital age.
In the age of digital, social media, and e-commerce, new brands are challenging established CPG and FMCG brands way faster than in the past. Social media tools, such as YouTube, Facebook, Twitter, Instagram, and TikTok, have transformed the way that customers and brands communicate and engage each other. Low-cost social media analytics tools permit companies to understand customers’ behavior better than ever before and build their digital profiles for future campaigns.
For new or start-up brands, these digital media platform tools provide a free or low-cost way to connect and engage with the people who buy and use their products. For some established brands, this can be the new highway to connect directly with their customers. CPG and FMCG sectors are witnessing the rise of digital-only and direct-to-consumer brands. They are not dependent on building a retail and wholesale side of the business to launch a successful product.
Future Transformation Roadmap: Top Imperatives for the CXO’s
- Value pools and market share opportunity: Build the value pools and market share opportunity models related to digital transformation in the CPG industry. The data and tableau models should be updated regularly and even on a real-time basis wherever possible. Access to category-level market share data is very critical for CPG company's success.
- Regulations, Risk, and localized strategy assessment: Develop regulatory frameworks, risk-assessment tools, and consumer behavior market research to design localized strategies and offerings for the key markets. Start experimenting with launching digital-only brands as part of your overall portfolio that may not be available in the retail market
- Competitive landscape and ecosystem partnerships: Have you mapped the competitive landscape to find the best-in-class digital-only brands and CPG company build digital communities in your country, industry, region, and global markets. Track the partnerships, technology, and strategic investments of the competition across sectors and geographies.
- Unicorns, disruptive start-ups, and new technologies: Track the technology unicorns, promising start-ups, disruptive business models, and patents issued for disruptive technologies. Partner with digital-only brands and platforms that help you upsell.
- How do you ensure your Omnichannel sales keep growing? Track sales by products, brands, and geographies at the granular most level across online and offline channels. Keep the sales channels agile to shift sales from retail to online in case of COVID-like scenarios and vice-versa. Develop logistic capabilities and partnerships to build a direct-to-consumer brand.
- Community and platform for sales and data insights: How do you plan to build and engage a vibrant digital community on a platform or a mobile app? Companies need to create a big-data engine — a software tool that inputs billions of proprietary and publicly available data points into an in-house demand-sensing algorithm developed to optimize business decisions
About the Author:
Sidhartha Sharma is a Digital Transformation expert and business leader with 15+ years of experience in Management Consulting firms.
He is also a Bestselling Author of multiple books on topics of Digital Strategy, Entrepreneurship, Organization Change, and Optimal Performance and Work Happiness.
His personal writings and columns regularly feature in media houses like Business World, Indian Express, Live Mint, Asian Age, and Deccan Chronicle.
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