manufacturers and retailers must
be prepared. According to IBM’s
Retail 2025 report (referenced
recently in Computer World),
during the next decade stores
will evolve into showrooms
providing brand experiences, and
orders will be shipped directly to
consumers. Additionally, online
and consumer-direct sales are
expected to increase and account
for 50 percent or more of revenue.
E-commerce currently accounts for
a small share of CPG sales, but it’s
accelerating rapidly. Shoppers have
increasingly moved their purchasing
online—online sales have improved
15 percent annually since 2010,
according to eMarketer, far outpacing
brick-and-mortar stores. In addition,
Buy, PetSmart, and even big grocery?
The demise of brick-and-mortar retail
is said to be overexaggerated, and
while that may be true, the impact
e-commerce is having in forcing
both retailers and brands to reinvent
themselves has been understated. As
a result, consumer brands, including
fast-moving consumer packaged
goods (CPG), must make significant
changes to their go-to-market
strategies to grow and survive.
Unquestionably, the shopping
experience is changing, and CPG
IS BRICK AND MORTAR
CRUMBLING CLICK BY CLICK?
The Impact on CPG Brands
BY MICHAEL J. MUSSO,
MANAGING DIRECTOR, CONWAY MACKENZIE, INC.