Home | Growth | Report: Digital Commerce Remains a Largely Untapped Opportunity For Consumer Packaged Goods Companies

Report: Digital Commerce Remains a Largely Untapped Opportunity For Consumer Packaged Goods Companies

By
Font size: Decrease font Enlarge font
Report: Digital Commerce Remains a Largely Untapped Opportunity For Consumer Packaged Goods Companies

Only 43 percent of Surveyed CPG executives think their company has a clear, well-understood strategy

Consumer packaged goods (CPG) companies are underestimating the e-commerce channel's growth potential and consequently may be missing out on a substantial market opportunity, according to the first of a two part Deloitte study, "Digital Commerce in the Supermarket Aisle." 

The study analyzed responses from a survey of 2,040 online shoppers who are responsible for shopping and food preparation in the household, a survey of 43 executives and senior managers engaged in activities related to digital commerce at CPG companies, and in-depth interviews with selected executives.

"Increasingly, consumers desire the convenience of the online channel to purchase their groceries."

One of the most significant findings revealed that, while both executives and consumers anticipate online sales of food, household and personal care products will grow in the next year and over the next three years, consumers' intent to purchase these products online far outpaced executives' expectations for both time periods. According to the report, executives expect 35% growth in the next year and 76% growth in three years. In contrast, consumers expect their online purchases to increase by 67% in the next year and 158% in three years.

"Increasingly, consumers desire the convenience of the online channel to purchase their groceries," said Pat Conroy, vice chairman, Deloitte LLP and consumer products sector leader. "Although consumers are changing their behavior, CPG companies are not as prepared as the data suggests they should be to take full advantage of this growing opportunity. The importance of e-commerce to CPG companies has not, in most cases, translated into a fully-developed strategy for capitalizing on this channel."

The study also found that while 92% of CPG executives agree that e-commerce is a strategic sales channel, there is a disconnect between the expressed opinions of these executives and the readiness of their companies to execute – only 43% of CPG executives think that their company has a clear, well-understood digital commerce strategy.

1 2 »
Join PRESIDENT&CEO on LinkedIn

Subscribe to comments feed Comments (0 posted)

total: | displaying:

Post your comment

  • Bold
  • Italic
  • Underline
  • Quote

Please enter the code you see in the image:

Captcha