CPG’s Post-COVID Future
CPG companies are constantly evolving to meet consumers’ needs. So, if today’s consumer is constantly changing, what does that mean for the future of the industry? Giusy Buonfantino, chief digital and marketing officer for Amway, and Chaly Jo Moyen, senior vice president of strategy, planning and decision science for Coca-Cola North America, joined CPG Speaks to talk about their vision for the industry moving forward, especially in a COVID-19 world, and how CPG can be on the cutting edge of what consumers want and expect.
COVID Speed is the New Normal
The COVID-19 crisis changed more than just the way we do business — it accelerated and shifted consumer expectations, creating a brand new landscape that no one was prepared for. The pandemic forced the industry to pivot more quickly than ever before, and after the initial shock, brands have continued to deliver.
“CPG is responding. When you look at innovation and lead time, what used to take a year or 18 months, we’re now really speeding up as an industry.”
“What I think is really changing, and what COVID has accelerated, is the speed at which we have to refine the relevancy of the brands,” said Moyen. “The good news is, CPG is responding to this. When you look at innovation and lead time, what used to take a year or 18 months, we’re now really speeding up as an industry.”
CPG strategies have moved to meet people where they are — in their homes and online.
“The way we used to connect with consumers, through building big general national campaigns, isn’t as effective,” Moyen continued. “CPG has done a good job creating creative that is more specific and more individualized.”
Connect Locally and Think Digitally
The digital world has ushered in consumer habits that no one could have imagined 20 years ago. From online grocery shopping to discovering thousands of small, unique brands that fit specific needs, the internet has given consumers new ways to discover products that work best for them.
“When I entered CPG, it was all about big brands,” said Moyen. “The last 10 years in the U.S. landscape have taught us that smaller brands can take a substantial share of market. When you look at what’s driving this growth, it’s been connecting locally and finding a niche proposition that fulfills a need.”
“When you look at what’s driving growth, it’s been connecting locally and finding a niche proposition that fulfills a need.”
For big brands to imitate this small brand model, remaining relevant and creating consumer relationships through data is vital.
“Overall, I think the big wake up call for all of us in CPG is how you personalize your offering for the ever-changing consumer,” said Buonfantino. “Utilization is the heart of data. All CPG companies collect data, but we should be making sure we’re using it to drive acquisition and loyalty, to shape a digital marketing strategy.”
New Opportunities in an Online World
It’s clear many of the changes from COVID-19 are here to stay, even after a safe vaccine is distributed to the public. And though the skyrocketing number of people ordering essentials online will likely decrease, companies should expect online demand to remain heightened from pre-pandemic levels, as more and more consumers are accustomed to its convenience. This shift will allow CPG and retailers to get to know consumers better than ever before and provide new opportunities to connect with them.
“When we innovate, we want to hear from our consumers straight away. Social listening gives CPG a direct relationship with the consumer.”
“When we innovate, we want to hear from our consumers straight away,” Buonfantino said. “Social listening gives CPG a direct relationship with the consumer, as they try new products or have new ideas. They are your consumer panel you can innovate for in a much quicker way.”
Visit our website to learn more about CPG Speaks and to register for an upcoming session. CPG Speaks is complimentary for attendees, thanks to PwC and individual session sponsors.
Published on December 1, 2020
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