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How eCommerce is changing the rules for CPG branding

Whether you have been selling your brands through eCommerce for awhile, or are just contemplating a strategy, one thing is for sure – eCommerce for everyday CPG products is here to stay and will continue to grow at substantial rates. According to 1010Data who monitor the top 50 CPG categories, eCommerce sales have increased 30% in 2016 to reach $10 billion in sales. This is just a tip of the iceberg for what projections lie ahead with McKinsey estimating CPG eCommerce sales could reach $50 Billion in the next 3 years. Companies like P&G are leading the way, as Pampers claims the top spot for total eCommerce sales.

So what does this mean in terms of your branding and packaging strategies?

Most importantly, eCommerce must be embraced as a distinctive marketing channel, not just another sales channel. This means that many of the golden rules for merchandising and packaging used in brick & mortar do not apply here.

To build a successful strategy, it is important to understand the uniqueness of the digital customer journey, and then build an optimal brand experience at each moment of truth.  

Here are our 4 credos, aka “the 4C’s”, on how to succeed in e-commerce:

 
 Source: amazon.com

Source: amazon.com

1. Content is king. Digital merchandising is the battle of the “perfect page” not “shelf pop”. This means that rich product content and enticing, sharp visuals that amplify your brand identity and draws people into engaging story telling will win the moment. 

 

2. Comparisons are critical. Shoppers online are very price sensitive and without being able to pick up the product and “feel” the size, it is very important to detail product/price/size comparisons. This is typically how consumers rate products, and those visible ratings play an important role in determining which brands and products they buy.

 Source: amazon.com

Source: amazon.com

 
 Source: Dollar Shave Club

Source: Dollar Shave Club

3. Cutback on unnecessary outer packaging. That oversized clamshell that works on a peg in retail is wasteful and unnecessary in an online environment.  Worse, it drives up costs and creates frustration when it appears inside the shipping box as another layer of work and waste. 

 

4. Celebrate the ultimate moment of truth – the opening of the package. This is an incredible opportunity for CPG marketers because they now have control in creating a unique and memorable brand experience at the consumers’ first touch of their product. The opportunities and possibilities here are endless and exciting.

 Source: FOODKICK

Source: FOODKICK

It’s a new day and a new marketplace for CPG brand leaders.

 

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