CPG brands should leverage marketplaces with already acquired consumers.
Rather than competing with online marketplaces like Amazon, CPG brands should understand these ecosystems, and create relevant engagement strategies, as per Ascential’s recent white paper. As these marketplaces, social media platforms and search engines are “network effect” businesses, they ultimately attract more consumers.
Further, with ecommerce rapidly growing and removal of third-party cookies, digital marketplaces are more likely to achieve “personalisation at scale” than CPGs. For CPGs to survive, they should focus their efforts on creating a framework for these marketplaces based on priority markets, consumers and brand fit.
The author contends CPG brands should develop market-specific strategies. Having a global understanding of marketplace visibility and gaining insights into “digital shelf positioning” can help CPGs optimise their performance in these marketplaces.
[2 minute read]