When news broke last spring about Amazon’s courtship of some of the world’s biggest consumer packaged goods (CPG) brands, it touched off a wave of speculation. Did the e-commerce giant simply see an untapped opportunity for its fulfillment solution? Or was it engaged in a longer game to alter the relationships between consumer goods makers and their brick-and-mortar retail partners?
However it plays out, Amazon’s outreach exposed a digital divide in the consumer products world. On one side is the growing interest of brands in direct-to-consumer (D2C) models. On the other side are persistent worries about conflict — not just with traditional distribution channels but also with retailers carrying the brand. To bridge this gap, we identified seven dimensions in this Executive Insights along which a variety of pioneering brands have arrived at an effective digital strategy.
- Understand how digital serves different consumer segments
- Use the right digital channels
- Add value to the consumer
- Look for measures that matter
- Make room for new technologies
- Keep the online conversation going
- Find a way to work with third-party retail channels