The CPG sector is approaching a tipping point, and tapping into the consumer’s psyche is the only means to drive growth.
FREMONT, CA: The consumer packaged goods (CPG) sector has evolved quickly to meet consumer demands thanks to digital technology that has enabled brands to carve out markets by selling directly to customers, from online ordering and delivery to personalized kits and many more. Retail giants launch their CPG marketplaces to capitalize on changes in consumer behavior, emerging channels, and the advent of customer-centric digital brands taking over the CPG sector. Here are the key trends that are redefining the future of this industry.
The idea of convenience will become more granular, and the smaller details will determine success. CPG firms are all set to integrate user behavior insights with smart design and engineering to offer next-level consumer convenience. Customers can serve a versatile selection of products at home with the click of a button. Such a re-imagined method calls for sharper market-sensing and adaptive manufacturing. It will set the stage for collaborative innovations.
In demand for more sustainable experiences, food production will come closer to homes. Hyper-local horticulture for households will become powered by technology and digitization. This is also offering rise to hyper-local networks as business possibilities. Some firms leverage local logistics services to achieve speedy delivery across the country. This allows local shops and restaurants to get access to a larger base of digital customers.
• Supply Chain Ownership
CPG players are looking to own the whole supply chain to grow their brand, allowing more precise and end-to-end supply chain analytics to take the primary position. This will also enhance the depth of data science in pricing and promotion analytics. Supply chains will change to be a key competitive differentiator and growth enabler, as CPG firms make them a vital part of their experience strategy.
• Subscription Services
For CPG firms, Direct-to-Consumer (D2C) potentials will be an opportunity to gain higher and targeted engagement, increase margins and enhance brand equity. Subscription services assist end-customers in engaging in meaningful relationships with brands with massive flexibility – from increasing or mitigating or pausing a subscription to changing products and discounts midway.
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