After Covid influence involved?
Should CPG brands cast their DTC (Direct to Consumer) businesses in a supporting role to stores?
Sep 22, 2022 by Melissa Minkow in Retailwire
It appears there’s been a significant tide turn for consumer packaged goods (CPG) brands in the direct to consumer (DTC) selling versus retailer distribution debate as marked by a consensus among presenters this week at Groceryshop in Las Vegas.
A year ago, the repeated objective mentioned among CPG executives focused on shifting consumers towards buying from their DTC sites in order to capture the most first-party data possible. This year, regardless of the session, the universal takeaway from the CPG success stories was to instead leverage DTC sites in a way that complements their presence on grocery store shelves and websites.
Charisse Hughes, chief brand and advanced analytics officer of The Kellogg Company, said on day one of the conference that DTC is useful for unearthing consumer insights and for experimenting.
Ms. Hughes said, however, that while DTC is where Kellogg’s innovates and tests, it does present challenges with respect to the last mile. Kellogg’s has determined that DTC sites are best for “swag and new products” so that there’s a differentiated value to the owned channel.
A similar strategy was echoed on day two by Francesca Hahn, VP of digital commerce at Mondelez, who highlighted the engaging ways shoppers can interact with the Oreo and Sour Patch Kids sites. ... '
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