The New Normal
The consumer packaged goods industry has been profoundly impacted by COVID-19 further accelerating digitization trends and innovation.
CPG sales saw an $8.5 billion increase over the two-week period of March 7-March 21, 2020 and according to NeilsenIQ, that’s 15x the category’s average rate of change. During this time, 35% more people were shopping online for CPG items, with grocery a leading driver of sales. Online CPG sales increased 91% during that first week.
This trend isn’t going away. “By 2022, ecommerce’s share of individual grocery categories is expected to be as much as three times higher than pre-COVID-19 levels and two times higher than forecasts before the pandemic” (Brick Meets Click).
COVID has forever impacted the way in which people live and work. Furthermore, how and what people buy is now different as shoppers themselves have dramatically evolved.
Introducing the Conscious Shopper
Today, we’re seeing the emergence of a new class of shopper, one that is going to have a profound influence on all shopper-facing marketers. Connected shoppers are bombarded with choice and their entire decision-making and purchasing process has transformed as it increasingly moves online.
Dubbed the “conscious shopper” by management consulting firm Accenture, the evidence is clear that the pandemic served as a catalyst for the sustainability movement. In fact, an Accenture 2020 global survey found that shoppers “have dramatically evolved” and that 60% were reporting making more environmentally friendly, sustainable, or ethical purchases since the start of the pandemic.
The reality is people’s values are infused in their shopping habits. Brands and retailers have an opportunity to provide shoppers with information that influences the products they explore and the decisions they make. Demand in the digital age is about bringing experiences, content, and brand interactions straight to the consumer.
CPG Brands & Retailers Are at an eCommerce Tipping point
CPG brands and retailers are at an ecommerce tipping point and it’s more important than ever before to seize on the opportunity to win valuable new e-commerce shoppers during this demand surge. CPG executives aren’t blind to the growing importance of e-commerce in their customers. Indeed, 92% of CPG executives surveyed in the “Digital Commerce in the Supermarket Aisle: Strategies for CPG brands” by Delotte University Press agreed with the statement, “The ecommerce channel is a strategic sales channel for CPG companies.”
Yet there is a disconnect between these executives’ expressed opinion and their companies’ readiness to execute. Only 43% of CPG executives in the study thought that their company had a clear, well-understood digital commerce strategy. In other words, the perceived importance of e-commerce to CPG companies has not translated into a fully developed strategy and plan to capitalize on the ecommerce channel. Furthermore, fewer than one in seven CPG executives self-assessed their company’s digital commerce capabilities as “advanced” across 15 digital commerce areas, including e-commerce vision, processes, talent, and having a single view of the shopper.
NielsenIQ Brandbank: Meeting Brands & Retailers On Their Path to Digitalization
Shoppers demand and expect quality product content as they progress along their purchase path. Retailers that provide relevant content at key touchpoints are the ones that will win shopper trust and come out on top. How are you identifying the opportunities across the digital shelf to compete successfully?
If you don’t take action today, you risk losing sales to Amazon who is expected to account for 50% of all retail sales in 2021. For companies looking to deliver the best shopping experiences, product digitalization is the game-changer. Attempting to serve more channels and deliver robust product content that today’s shoppers demand in a seamless way is nearly impossible without a digital transformation strategy.
NielsenIQ Brandbank’s solutions support the entire product content lifecycle to ensure we equip our customers in digitalizing product content easily across all channels to win the battle. Whether you are looking to simply fix the basics, or achieve best in class, the NielsenIQ Brandbank team is here to help you on your path to digitalization and help you compete successfully, by identifying opportunities across the digital shelf.
NielsenIQ Brandbank’s Retail solutions include
- Tap into NielsenIQ Brandbank’s Product Library and gain access to a rapidly growing library of national branded content with tens of thousands of items available today at no cost. Retailers can leverage the Product Library portal to improve product courage and discoverability with fresh content that is continually updated to ensure accuracy and transparency ultimately driving discoverability.
- Improve content quality completeness and coverage with proactive vendor & brand management. Ensure all your product content needs are met today and tomorrow. NielsenIQ Brandbank’s content creation services include proactive vendor management that has been optimized through years of experience. This service includes weekly reports out on coverage, continuous improvement leveraging content analytics enhances content and qualities, best-in-class content creation through brand collaboration, and automated on-boarding program streamlines processes and ensures transparency
- Engage shoppers and drive sales with enhanced product content to make your products stand out. NielsenIQ Brandbank’s enhanced product content solution transforms product pages by creating better digital experiences at no cost to the retailer to add these enhanced content modules. Brands that leverage enhanced content improve the conversion rate of a listing upwards of 25% once they start taking advantage of the Amazon A+ Content feature.
We are here to help you take your products to the next level driving product discovery through digitalization. Contact the NielsenIQ Brandbank team by emailing email@example.com to find out more.