Preparing for an E-commerce-Fueled Future
While it may seem like many of today’s consumer goods companies are becoming pros at their e-commerce acceleration, the truth remains that many brands still struggle to determine their e-commerce value proposition and replatforming strategies.
Read on to learn about some of the most important things brands must know when it comes to digital commerce platforms and business models, including:
- Why looking to digital natives for inspiration can be a big mistake
- The trifecta of capabilities required to win customer experience
- How not to get sidetracked by investing in edge cases
- What to think about when it comes to your commerce engine
CGT chatted with KPMG’s Scott Rankin, principal, national advisory leader, consumer and retail, and Sam Ganga, U.S. consumer and retail digital leader, about some of the most recent changes the CG industry has experienced. The full conversation can be viewed above.
To be sure, digital commerce isn’t a new topic, but many consumer goods companies were forced to re-prioritize as a result of its dramatic acceleration. For some, this has meant their own acceleration of initiatives, including how they rethink the replatforming of their existing e-commerce capabilities.
These changes have also meant that conversations about e-commerce and e-commerce platforms are no longer solely the realm of the chief digital officer or even the technology side of the business. It has increasingly become a transformational conversation making its way to other parts of the C-suite.
For companies still determining the right e-commerce business model, this means resetting expectations of what the market will look like over time. Identifying this new market baseline and its evolution are crucial, as is understanding the impact on consumers, their behaviors and their expectations. Once a company understands the business and operating model implications, it can then determine what really needs to change in order to serve customers and evolve its value proposition — as well as identify where they need to invest from a digital and technology perspective to hit these goals.
And, make no mistake, it’s something best done quickly. As we all saw, the companies that had previously invested in their e-commerce capabilities were better equipped to manage the extreme changes brought by the pandemic; as more CGs try to catch up, this pace is only quickening.
While some CGs may look to mimic digital natives’ playbooks, this isn’t always the best strategy. Though easy to envy startups for their ability to make quick decisions across functions, the truth remains that these companies carry different sets of needs, goals and objectives. For one thing, they’re often not as keenly tied into a financial goal for profitability.
Legacy CGs, therefore, may be better off taking into consideration what they can do well — whether that’s the supply chain, store footprint or product assortment — and then really doubling down on that strength. Borrowing an idea from a digital native, plunking it down within a legacy organization, and trying to incubate and run with it is not likely to be a recipe for success.
Instead, CGs are better served to be the best of who they are and then bringing in the inspiration — rather than flipping the script around.
Watch the video to learn more best practices for consumer goods companies seeking to improve their digital commerce capabilities and technologies, including how to rethink the ecosystems and technologies surrounding their digital platform.
