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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