Washington, D.C. -- Retailers and consumer packaged goods (CPG) companies are increasingly using technology to better connect with customers and drive profits, according to a new study from the Grocery Manufacturers Association and PwC US.
Results of “Growth Strategies: Unlocking the Power of the Consumer” indicate that despite generally slowing retail net sales growth in 2012, food, beverage and household products companies experienced positive net sales growth of 7%t, 5.5% and 3.2%, respectively.
Specific findings relating to how CPG retailers and providers are leveraging technology to reach consumers include:
- In 2013, more than 40% of CPG companies expect to sell products directly to consumers, up from 24% in 2012.
- Fifty-two percent of U.S. consumers are already buying directly online from brands they trust.
- Top-performing companies in the CPG sector achieve success by identifying their consumers, engaging with them and focusing on innovation that directly reaches them.
"Both the U.S. and global economies are marginally stronger than they were last year, and the continued slow recovery has led to correspondingly modest growth for the CPG industry," said Lisa Feigen Dugal, PwC's North American advisory leader, retail and consumer industry. "To drive profitability, providing consumers with the core product may not be enough. Today's consumers want solutions, they want experiences and value. CPG's and retailers can address this emergence through social media, innovation and direct-to-consumer channels, which will help them understand the wants, needs and values of their consumers."