One option is to create new brands and use DTC as a testing ground for validation. In our experience at Highline Beta, we’ve seen a few tactics that can help large CPG or FMCG companies leverage DTC. Any CPG or FMCG that goes “all in” on DTC may find less-than-accommodating retail partners, and that’ll have a massive impact on sales. Today, retailers maintain a ton of control they decide what goes on a shelf, where it’s positioned on a shelf (people don’t like bending down to buy things), promotions and more. A direct relationship and more data hypothetically would result in building better brand affinity, being able to up-sell more and ultimately keep customers longer.īut DTC is extremely difficult for large CPG and FMCG companies, primarily because of the channel conflict it creates with retailers. That control ideally means having a direct relationship with consumers, higher margins and more data. They don’t want to eliminate retail completely, but they do want more insight into and control over their end buyers. Walmart, Costco, Home Depot, CVS, etc.), who then sell the products to consumers.Įvery CPG and FMCG wants to go direct to the consumer. And even online retail, is still retail–the CPG or FMCG company makes the product, “sells” it to companies in the middle (i.e. Amazon), but most of it is still focused on physical stores and customers shopping offline. Some of that retail has gone online (i.e. Providing more value add on top of the physical products they sellĪll big CPG and FMCG companies scaled through retail, and retail remains the key channel for their success.Large CPG and FMCG companies have two major challenges when it comes to generating significant growth opportunities: Written by Founding Partner, Ben Yoskovitz. Big CPG and FMCG Companies Need to Move Up the Value Chain
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If one was a golfer the course seemed good. The sun City hotel is a better casino (though very small) and the Orchid Restaurant was ok. The Entertainment Centre is awful, and full of poor fast food places. A maximum of 2 nights would be more than enough. We were due to spend 5 nights there, but knew that was too long when the chap who took our bags seemed surprised we would stay that long. Though the expensive Villa restaurant was good. Room housekeeping was erratic and inconsistent. We had to ask 3 times to get the minibar stocked, queued for about 40 minutes to get to breakfast and about as long to check out. The hotel is manically busy, as is the resort, but to do so is clearly attracting a budget crowd. Though it is evident once here and looking at rates locally much less expensive for locals. It was also, as a foreign visitor, a very expensive place to stay for accommodation. It is a grand building inspired by Las Vegas (and you see the gem of an idea that Sol Kerzner who created Sun City would later turn into the much more ambitious Atlantis resorts). The Palace is a very large and ambitious complex, having created impressive gardens and waterfalls in the African bush. This complex although packed, was great fun. The saving grace was the brilliant Valley of the Waves water park which had 5 great water rides and a remarkable wave pool. But as we soon discovered on arriving at Sun City, the concept of “up-market” and Sun City are not entirely linked!Īdmittedly it had some glamour factor as Oprah Winfrey was also staying there, but overall I found Sun City and the Palace Hotel as overall unpleasant a place to visit and stay. The Palace of the Lost City hotel at Sun City in South Africa (which is about 2.5 hours drive from Johannesburg) is positioned as the most up-market of the 4 hotels that form the complex. 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