Why Consumer Goods (CG) Companies Must Act More Like Retailers
By Michael Hylton on Feb 17, 2012
Pushing traditional media through new media channels is no longer enough to succeed in today’s Consumer Goods market. A new approach is needed - one that puts brands wherever consumers are, in a way that encourages consumer participation. CG manufacturers need to increase their engagement with consumers and improve their direct-to-consumer initiatives. They are now aggressively exploring ways to integrate new channels and adopting strategies, processes, and technologies so they can act more like retailers.
Sponsored by Oracle, The Economist published an Economist Intelligence Unit report titled New Directions: Consumer goods companies hone a cross-channel approach to consumer marketing. The study is the result of a global survey of 221 consumer goods (CG) executives.
Brandchannel, an online exchange dedicated to branding, wrote their perspective on the study:
Consumer Goods companies need to think and act more their retail partners as their participation in social media and online storefronts increase. The Economist Intelligence Unit report, New Directions, sponsored by Oracle, reveals that 41% of respondents surveyed plan to sell products directly to consumers in 2012, a 24% increase over those currently offering direct sales.
“Consumer goods companies can no longer merely push traditional campaigns through new media channels to reach today's more product-savvy consumer. They need to integrate multiple channels to put brands where consumers are, in a way that encourages a more interactive relationship between consumer and producer, not passive consumption of marketing messages.”
Key findings include:
- The social media opportunity is finally catching the attention of senior management: 74% of CEO-level respondents say social media is a priority for increasing loyalty over the next 12 months
- Nearly a quarter of CG executives envisage direct-to-consumer replacing retail.
- Nearly half of survey respondents and other CG executives see their nascent e-commerce efforts as complementary to, rather than alternatives to, existing retail channels
Another perspective on the same study can be found here.