Forget the middleman. According to new research from the Grocery Manufacturers Association (GMA) and PwC US, more than 40 percent of consumer product goods (CPG) companies expect to sell directly to consumers through digital channels this year. That's up from 24 percent last year.
"CPG companies that engage with consumers directly through digital channels and build out their direct-to-consumer processes will have the best advantage for creating new growth," said Steven Barr, PwC's US leader, retail and consumer industry, in a statement. "Fifty-two percent of U.S. 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 the report, Growth Strategies: Unlocking the Power of the Consumer, digital channels provide CPG firms with the ability to test new products and connect with consumers more quickly and effectively than ever before.
"By providing consumers with innovative products and convenient, cutting-edge shopping experiences, CPG companies are well positioned to enhance consumer loyalty and profitability," said Pamela G. Bailey, president and CEO of GMA, in a statement.
The GMA/PwC research reinforces previous studies on the consumer direct opportunity. Research conducted by the Economist Intelligence Unit (EIU) for Oracle Consumer Goods last year concluded that there were numerous physical and digital touch points where CPG companies could interact with consumers.
Procter & Gamble has been one of the CPG firms at the forefront of selling directly to consumers through its own e-store, shopping walls using QR codes, pop-up stores, third-party platforms such as Alice.com and more.
- CPG Companies, Retailers Shift Focus to New Rules of Consumer Engagement Says 2013 GMA-PwC US Report - Grocery Manufacturers Association
- Brands Skip Retailers, Go Direct to Consumers - RetailWire
- Is it time for Brands to Go Direct to Consumers Online? - RetailWire
- Alice Takes Brands on Different Path - RetailWire