IRI's Times & Trends highlights new developments and critical events across all major CPG categories and channels, providing powerful benchmarking data to help guide your strategic decisions. This report examines e-retail as a phenomenal growth lever, and its rapid evolution into powerful marketing channel.
The evolution of the CPG industry has been a story of disruption, where new channels have emerged quickly and are adeptly competing for and winning market share from traditional players. As a percent of industry sales, e-commerce account for only a small percentage of overall CPG sales. By 2022, the channel will claim an average 10 percent of industry sales—a bit less in food and beverage, but over 18 percent across non-food aisles. But the impact of e-commerce doesn’t stop at sales. Digital will influence some 77 percent of all retail sales—online and offline—this year, with a retail value of more than $2 trillion.
Retailers are investing heavily in e-commerce, rendering “old” go-to-market strategies obsolete. Retailers are moving quickly to engage and excite shoppers today, while their e-commerce behaviors are in the formative stages, to set the stage for long-term success. Amazon is a top e-tailer, with scale and dexterity that is paving entirely new paths to growth. Because the online environment is markedly different than the brick-and-mortar world, brands that are category leaders offline are lagging behind niche players in the online environment.
CPG marketers can grow e-commerce sales up to 150 percent by building a strong online presence and earning shopper awareness. Because consumers visit e-tail sites with a purpose in mind, they are more open to buying than they are while they’re on media channels. To win in this new environment, even traditionally brick-and-mortar brands must have a strong online presence—one that facilitate the discovery process by providing key information—and ensure that their presence is strategically located along the path to purchase.