Four Ways CPG Companies are Reinventing Trade Models

It’s an industry that’s changed considerably from what it was just five years ago. Digital trends have most of the focus over the last few years in helping to reinvent traditional value propositions.

Also changing is how new entrants pursue more personal approaches with their customers. Other changes include more practical procedures outside the digital landscape. For instance, new storage methods for goods pickup have emerged.

In addition to these, you’re also seeing the rise of drone deliveries.

Let’s look at how these reinvent trade models in the CPG industry and how it can change your business for the better.

Direct-to-Consumer Business Models

One of the most significant changes we’re starting to see is direct-to-consumer (D2C) process to create a more personalized relationship with customers. This works in various ways compared to how consumer package goods businesses typically operate.

Since CPG always relies on quick sales and fast replenishment, similar companies are starting to offer intense competition. As you’ve likely noticed, Amazon is one of the biggest competition challenges for those of you in the CPG field.

To amend this, direct-to-consumer approaches can help you service your customers in more immediate ways without going through roundabout methods.

For instance, focusing on e-commerce can give you a way to help people find what they need on their mobile devices when brick-and-mortar visitations can’t happen.

It’s the same with the use of data, something growing thanks to machine learning.

Using Data to Learn About Your Customers

Gaining fast data insight is the name of the game to survive in the CPG industry today. Otherwise, competitors finding quick customer data are going to gain the upper hand and potentially steal away your loyal patrons.

To upgrade, it’s time to use artificial intelligence and machine learning. These programs absorb what your customers do on your website and give you granular data about their habits so you can provide what they really want.

In turn, you’re creating a more direct and personal way to provide the goods you know your most loyal customers are going to buy. You’ll also learn other aspects of what consumers want in your products.

Distribution Management System
Cloud-based Distribution Management System

New Lockers for Instant Pickup of Goods

While Amazon continues to provide headaches for the CPG industry, they’ve offered one thing many in the field need to imitate to keep up. They’ve provided a self-service delivery option where you can pick up an order in a private locker and likewise return them there if necessary.

To keep up with competition, it’s a good business model to use to improve your direct-to-consumer strategy. Allowing customers to pick up goods at a time convenient for them (through an email alert) provides more safety for the item.

With thieves stealing packages from doorsteps, a locker for pickup is becoming a new path toward improved customer service. It also eliminates the need for customers to rent out a P.O. Box.

Drone Delivery

We’ve all heard about Amazon preparing to start deliveries by drone. While it might take longer to work out the complexities behind drone deliveries, it’s inevitable by the next decade. Google’s model is notably different, the patent application is for package delivery using an automated drone to a central warehouse and uses beacons to guide the package to a location to hold for pick up for last mile delivery.

It’s worth your while to start preparing now for drone deliveries since it’s going to help cut costs on shipping, which saves money for your buyers. Smaller companies are working on ways to use Robots for delivery in the race to beat drones.

As Business Insider points out, the timeline on using drones for deliveries is shorter than you may think. They expect 2020 as a target date when limited commercial deliveries start taking place on a larger scale.

Visit us at Ivy Mobility to use our enterprise and mobile software solutions to help you improve your CPG business. We’ll help ready yourself for a new era.

Published by December 7, 2022 by Ivy Mobility

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