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What CPG Brands Can Learn from DTCs About Improving Holiday Sales

CPG brands should know winning online is not about staying ahead of new, challenger brands. It’s about anticipating the needs of the market and taking control of their ecosystems.

Paul Palmieri, CEO and co-founder at Tradeswell
Paul Palmieri, CEO and co-founder at Tradeswell
Digital Commerce 360

Author Paul Palmieri - to see original post click here.

Reprinted with permission from Digital Commerce 360 -

Much has been written about the emergence of direct-to-consumer (DTC) brands and how they are stealing market share from iconic consumer packaged goods (CPG) brands. But too many CPG brands focus on what they must lose that they have lost sight of what they could gain.

I’m not just talking about riding the ecommerce wave of 2020 and leveraging online channels to increase top-line revenue. I’m talking about what matters: profitability.

CPG brands already have their own playbook for success, especially when it comes to distribution. They’ve been operating in an omnichannel environment for years, even decades. Compared to DTCs, they are ahead of the game. However, what they are missing is the same technology that DTC brands need—a transparent view and command of their entire value chain.

Here are the four ways that I believe CPG brands could forge ahead with sustainable, healthy growth in the ecommerce channel—and defy the odds and increase their bottom-line during margin-killing sales events like Black Friday and Cyber Monday.

Advertise outside of shopper marketing platforms

Let’s start with customer acquisition since 2000% top-line growth seems to now be the aspirational target for early-stage DTC brands. What are they doing that traditional brands aren’t? Start scrolling through your social media feed and you’ll figure it out quickly. Mine, for instance, is full of both branding and direct-response ads from Bombas, Anova and Caraway. Assuming I believe I must have premium, chemical-free cookware in my life, I can tap to buy it right away.

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