The physical to digital gap for the CPG industry
21/02/2018CPG goods industry is one of the biggest, if not the biggest market in the modern economy. Powerful multinational brands/retailers and few local retailers have dominated most of the developed & developing markets, capturing a large portion of consumer spend. Having all this power and cash, they have always been pioneers in the business world, be it brand marketing, logistics & operations, POS technology, forecasting & fulfillment processes and many more. Nevertheless, they have failed to pioneer and effectively reach the new 'species' of consumers: the digital consumer.
Even though they are the largest advertisers in their markets, they struggle to build on the contemporary new media and modern digital marketing, being stuck in traditional ways of advertising and shopper marketing or transferring the traditional advertising culture in the new, digital media. Brand managers still discuss reach, GRPs, frequency etc. while the rest of the world is talking about Cost per conversion, lifetime value, retention & cohort analysis and few others.
The digital consumer is one second away of searching anything online, with smartphones and mobile internet growing to almost universal adoption in certain age groups. However, when she leaves the screen and continues in the physical world, is when the real challenge starts for every marketer. More than 80% of Greek consumers are researching online for offers, product characteristics, nearest stores, However, 99% complete their purchases offline. And this is when the chain of information breaks. Each consumer becomes another anonymus person and everything that happens before or after point zero, remains buried and useless... In other words, falls in what we call the 'physical to digital' gap!