How CPG Brands Keep Up With Retail’s Fast Moving Consumer Demands

How CPG Brands Keep Up With Retail’s Fast Moving Consumer Demands?

Undoubtedly, the consumer packaged goods (CPG) market is experiencing paradigmatic shifts.

The reason?

Extraordinarily fast-paced and ever-increasing consumer demands.

As a result, traditional brands have to compete with smaller startups. The rise of digital marketing and sales channels has only added to the effect.

Both CPG and retail industries have gone through significant transformations. Both as a result of the COVID outbreak and long-term changes in consumer behavior and demands.

How CPG Brands Keep Up With Retail’s Fast Moving Consumer Demands?

In one of the reports, Adobe estimated that ecommerce reached levels in 2021 that were not previously forecasted to reach until 2025. Such an ongoing e-commerce and retail surge is just one of the challenges CPG brands face.

As a result of this, no matter what the organization’s size is – whether they are legacy or startup business– everyone is required to rehaul their field service solutions. Thus, to keep up with these changing demands without losing out on profits.

Companies are now rightly turning towards digital solutions that integrate various important functions – like merchandising, marketing, distributing, operations and fulfillment.

As well as, the advanced abilities provided by analytic tools of today have made possible to keep up with the changing demands. This helps accurately predicting a lot of important information/data about the business.

Other than that, there have been significant changes in the way of operations of CPG companies to stay on top of the curve.

Here we highlight some of the key points on how CPG brands keep up with retail’s fast moving consumer demands:

1# Omnichannel presence – anytime, anywhere availability:

This trend is the archetypical example of one that has shaped all operations domains as we know them today. Consumers are increasingly digital in their presence today. So, everything is almost a few taps away. This has given consumers a greater incentive for performing better research before ordering any product. Thereby ensuring both safety and convenience. However, this has increasingly put pressure on the CPG firms.

Relatively fresh communications and advertising channels like voice assistants, video marketing,  Instagram marketing trends or podcasts have made it easier for business to reach the potential audience. Also, consumers can now easily direct the research process and switch their loyalty whenever needed.

Podcasts, in general, are extremely efficient at getting brand recall, while voice assistants offer the same in a fast and low-friction way. Also, video content marketing and Instagram marketing have now became the trends in the fast-moving retail market.

Adding to that, food delivery services are also on the rise, almost undercutting CPGs selling direct ingredients to consumers. In fact, various big merchants are rapidly investing in the delivery services on the logistics front. As a result of all this, the chances are that price-sensitive and convenience-seeking consumers may switch their buying habits away from smaller firms and pretty much automate their shopping.

The solution to these challenges is turning towards a more sophisticated and robust IT infrastructure. The need of the hour is to have as much digital presence as possible, and that is what successful CPG brands are doing.

Seamless omnichannel presence is important.

In today’s world, especially when it comes to consumer-facing services – if you aren’t present digitally, you are as good as non-existent. Being digitally present also allows brands to tap into the conversations, feedbacks and sentiments of their customers. This also increases the potential market which provides the nudge needed to work in the right direction.

2# Agile approach to supply chain management:

Secondly, how CPG brands keep up with retail’s fast moving consumer demands depends on the supply chain management. As this have always been an integral part of any CPG or retail business. However, supply chain management has not been smooth sailing for most companies despite its importance. Mostly, supply chains gets neglected due to improper integration of all the sources that could facilitate effective moving of the supplies.

This fundamental drawback with supply chain management is enough to cause a ruckus. But adding to that, there are other problems like labor shortages, trade regulation, and climate change.

So, to meet the consumer expectations and provide them with a seamless experience does require a proper supply chain management. Thus, CPG brands have now realized this fact. And so they are turning towards digital presence. As well as automating the ways of supply chain management by integrating advanced analytics facilities and machine learning abilities.

3# Revamping distribution models and leveraging serialized QR codes:

Fast delivery lures a lot of people and can make CPG companies win a lot of customers.

Whether it is across home delivery, BOPIS (buy online pick up in-store), or curbside delivery. Today’s customers prefer spending more on the convenience of getting the product than the product itself.

As a result of this, there has been immense popularity in the usage of subscription services like Amazon Prime, Walmart Plus, and so on. To keep up with this, CPG brands are rehauling their distribution models to accommodate faster deliveries without compromising on quality. Data analytics is again helping on this front by providing accurate predictions and insights for the future.

Another way CPG brands are leveraging this is by trying to build a closer relationship with customers – by utilizing connected packaging.

What this essentially does, is that it uses serialized QR codes scanning. This gives users all the information they need regarding their product. So as it includes all the product’s touchpoints, security alerts, tracing packaging, and more. This helps in building a better relationship with customers. And  also benefit brands by providing them a way to verify the authenticity of the product and record buyer’s data to further personalize consumer’s engagement.

In conclusion

We’re in the era of fast-paced operations where food and beverages trends in Asia and other countries are changing at a fast pace. Emerging Technologies has always paved the way for the smooth transition, communication and end consumer support. This has also helped expanding domains that was traditionally blocked.

But in doing so, technology has also provided customers a way to have better control over their choices. This has pressured companies – especially the consumer-facing ones – to relook at their strategies and innovate wherever possible. That is how CPG brands keep up with retail’s fast moving consumer demands – by innovating and experimenting with the latest tools and technologies!


Nupur is a tech writer at TechGeekSpace. She loves exploring latest tech, gadgets and have been writing on various topics related to technology, software, Gadgets, Windows, Mac, Internet, Android, and the latest tips and tricks.

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