Should CPG manufacturers go direct to consumer—and, if so, how?
The digital world has given manufacturers new ways to engage consumers, but online direct-to-consumer models are a mixed bag. Which ones actually work?
E-commerce is here to stay, and it’s affecting every product category. Consumer packaged goods, which were once purchased almost exclusively in stores, have moved into the “digital battleground”—that is, consumers are increasingly researching and buying them online. Recent surveys indicate that nearly one in four US households already shops for food and beverages online; our research suggests that the number of US consumers buying health and hygiene products online could more than double within a year.
Meeting the online consumer demand—and perhaps stoking it, as well—are a rash of new pure-play competitors, some flush with cash from venture capitalists and private-equity firms. These new players are giving established manufacturers and retailers a run for their money. In the snacks category, for instance, start-ups NatureBox and Graze have quickly captured online market share and grown into hundred-million-dollar businesses. McKinsey – Read more…