Trends shaping the Consumer Goods industry

Consumer goods firms have a particular challenge in 2021 due to the quickly changing environment in the market and real time influx of Consumer Goods Software applications. Consumer products companies are coming up with new methods of Consumer Goods Retail Execution to strengthen their capabilities and assets in order to face the challenge and continue to develop their businesses:

·         A click-and-collect supply chain with a data-driven process

·         A first-mover strategy for new routes to market through one or more direct-to-consumer (D2C) channels, as well as a recruitment plan that recruits cutting-edge,

·         CPG-specialized talent

We’ll look at each of these skills and assets in detail below, as well as how CPG businesses may use vertical-specific software to help them achieve them.

·         Click-and-collect supply chain optimized

The click-and-collect concept refers to online purchases that are picked up in a local store by the customer. Click-and-collect is set to explode in popularity in the coming years, and it’s currently the most popular digital entry point for food shops. The click-and-collect model’s main benefit is that it combines the ease of online buying with the speed and cost advantages of local pickup. Consumers may explore your digital shelves and add items to their digital carts in a fraction of the time it takes them to stroll the aisles and wait in a brick-and-mortar store’s check-out line.

Consumer goods businesses, for example, will need to think about how to make their items stand out on digital shelves, as well as how to use the unique platform of e-tailing to leverage cross-selling that draws rather than distracts. This shift will necessitate a considerable increase in digital merchandising spending. Inventory management will be another problem for CPG firms as click-and-collect grows in popularity.

·         Workflow based on data

Field sales, digital merchandising, direct store delivery (DSD), and distributor management, to mention a few, all contribute to the consumer goods industry’s unique collection of data streams. And, as the volume of data coming in from every channel of the CPG business grows, it’s no longer viable to make important choices solely based on industry knowledge and intuition. It’s critical to consolidate, integrate, and display your data streams into a single nerve centre that’s easily available to all CPG executives.

·         There are one or more direct-to-consumer sales channels available

In recent years, the direct-to-consumer (D2C) model has gained traction and has become a significant potential for CPG firms. Self-marketed standalone sites, Amazon listings, smartphone applications, and pop-up stores are some of the more well-known D2C channels. However, it’s critical not to lock the door on existing indirect routes that are now serving you well while leveraging your new D2C channel. You may opt to provide one version of your goods through traditional channels and another through your D2C channel to maintain a balance.

·         Method for acquiring talent

In 2018, your first objective should be attracting people with the unique skill set required by CPG firms. The highly skilled expertise necessary to harness new technologies and routes to market will become increasingly rare as the digital age discloses new technologies and routes to market. For instance, if you perceive a chance to be the first brand in your business segment to fully utilise a blockchain-enhanced supply chain, you’ll need top-tier IT experts with blockchain experience and knowledge.

CPG firms require the four essential competencies and assets listed above to handle the challenge and continue to grow market share. CPG businesses must optimise their processes to suit the click-and-collect model’s expectations and move to data-driven decision-making. And, their businesses must completely utilize one or more direct-to-consumer (D2C) sales channels recruiting cutting-edge, software-savvy employees.