CPG companies should use modern solutions such as digital and analytics to drive growth and efficiency by embracing these technologies. The effort required to realize this value potential will be well worth it. Traditional firms in revenue growth simply cannot beat organizations that use digital technology earlier.
According to McKinsey, digitization, automation, and artificial intelligence might add $13 trillion to global GDP by 2030. Despite this, industries around the world have only reached about 25% of their entire digitalization capacity.
Given a relatively direct relationship to the end-user and global reach, CPG digitization is closer to 30%, but it still falls short of the digitization level in the nearest industry, retail, which reaches about 50%. Despite being one of the most advanced industries in analytics, CPG remains one of the least technologically developed ones.
In this new normal, prioritization across consumer growth, effective and sustainable operations, and omnichannel environments will be the mark of achievement for CPG organizations. In order to maximize customer lifetime value, CPG companies will need to conceive and develop new products, recreate their impression of the consumer, acknowledge how to reach each with a personalized message, generate a unique experience that binds them to the brand beyond any advertising, and better comprehend how to allocate marketing spend.
Moreover, CPG companies will need to identify the correct combination and assortment of goods for offline and online channels, as well as optimize trade promotion, in order to ensure that the right product is available to the right consumer—at the right time, at the right channel, and in the right place in the store—from a go-to-market and channel perspective.
Google commissioned a study to investigate the impact of the pandemic on the CPG market in order to better identify the top transformation possibilities for CPG in this new normal. Take a look at the infographic below for more information!