All industries are gradually evolving, thanks to the trends and innovations in technology that are being adopted by companies to improve their customer experience. Today, product innovations, customer-centric business models, and digital strategies have formed the heart of businesses. The consumer packaged goods companies are not far behind from adapting to these emerging trends. The winds of change blowing across the consumer packaged goods industry have been both rewarding as well as challenging for companies.
But, how are consumer packaged goods companies setting sail to survive in this competitive world of innovations and what are the opportunities and challenges lying ahead of them, you ask? Here’s how:
Change in Business Model
Traditionally, when compared to the retail industry, which involves the sale of products to the end-users, the consumer packaged goods industry caters to a wider set of stakeholders such as sellers, marketers, and manufacturers of physical goods that are sold through retailers to the final customers. However, the consumer packaged goods companies are slowly shifting towards direct-to-consumer models by setting up their own online and offline platforms to reach out to their customers. For companies opting to experiment with direct to customer models, it becomes essential to have a detailed idea of specific habits and preferences of individual customers, unlike a traditional consumer packaged goods model, where the companies need to have only an overall idea of customer preferences.
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All Eyes on E-commerce
Getting a place on any customer’s shopping list is becoming a top priority for consumer packaging goods companies. Wonder why? Online sales are showing an upward trend in the growth graph, including the consumer packaging good industries. These days, most of the online stores have a facility where the customers can provide the items for weekly consumption on a list that automatically gets added to the customer’s weekly shopping basket. This kind of technology attracts more customers owing to the convenience it offers. Since the consumer packaged goods companies are new to this model of business, they are gradually taking inspiration from the retail industry to gather appropriate product and customer-specific information to meet customer expectations.
Earlier, the CPG companies were highly concentrated on mass production. However, the changing demands of customers have forced them to venture into customized production for similar preference groups. Effective customization can only happen through the manufacturer’s timely identification of opportunities. The faster the companies can predict the upcoming trends and adapt their production cycle and supply chain; the more are their chances of making their foot stronger in the market.
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IoT Makes the Work Easier
The consumer packaged goods companies are using IoT to streamline manufacturing processes. But some companies have started employing this technology to enhance customer experience, either by incorporating advanced technologies into their products or by collaborating with other brands that deal in IoT products.