This publication looks at the changing landscape of direct-to-consumer. Is the traditional business model that linked manufacturers, retailers and consumers finished?
Consumer packaged goods companies can no longer count on continued success based on the historic formula of mass production to mass distribution to mass marketing. Geographical entry points are dwindling, and stores are now closing faster than they are opening. The ability to make new markets with product innovation (i.e., new flavor, features, or technology) has been largely co-opted by new brands with specific, differentiated attributes. The benefits of growth, influence, and market share are quickly transitioning from traditional CPGs and retailers to a combination of online start-ups and platform companies. CPGs must get ahead of the full-scale disruption curve and invest in robust digital and social platforms and channels that will enable them to effectively engage with consumers.