Dinner with Algorithms

 A broad at how Amazon has changed the playing field, and will continue to do so, and what the reaction should be for CPG.

Dinner with Algorithms: Competing in the Amazon Era
By Guru Hariharan, Boomerang Commerce  in Consumergoods.

For consumer goods manufacturers, it is hard to understate the growing importance of e-commerce — especially Amazon.

In 2017, U.S. e-commerce grew by 16%, and Amazon represented over 70% of that growth. It doesn’t just stop there: Consumers are increasingly using data like reviews and ratings available on e-commerce sites to make decisions on what to buy in a physical store. 

This influence of e-commerce on the brick-and-mortar business presents a huge challenge for senior leaders of consumer packaged goods companies. There is a growing need for CPGs to transition their organizations from systems and processes designed for the brick-and-mortar era to smarter, technology-driven platforms designed for e-commerce. Here are the top reasons fueling this need:

1. Measuring online marketing ROI is easier
The way brands spend their advertising and marketing dollars is changing forever. In the world of physical stores, brands could buy an endcap or coupons, TV ads or online ads, but there was no easy way for them to measure their impact or ROI. 

In the world of e-commerce, brands can test a variety of marketing and product positioning techniques and receive real-time data on what works and what doesn’t to drive higher online (and offline) consumption.   ... " (And more in the full article at the link above)  ....