Despite the threat of the Coronavirus pandemic last year, the consumer packaged goods industry still experienced impressive growth in 2020, even more than in 2016-2019. The industry remains to be one of the largest sectors in North America.
Amidst the physical challenges in the distribution and sale of goods, many companies were able to step up to accommodate the need in these trying times. In fact, the pandemic has resulted in an increased demand for consumer goods, which means brands and marketing firms in LA will also see a change in trends for their marketing methods. Let’s explore some of those trends and tactics that can be under the spotlight this 2021.
Adapting to Amazon and Walmart’s Strategies
The outbreak of the COVID-19 pandemic has basically pushed Amazon and Walmart, two very big players in the industry, into an even more elevated position. This is because of their efforts to adapt to the significant shifts in the CPG industry and retail models.
Despite the complications brought about by the pandemic, Amazon and Walmart continue to lead online grocery shopping through this year and beyond, just as they did in 2020. It is in the best interest of CPG brands to collaborate with these huge industry players or, at the very least, make their own adjustments to adapt to this new trend.
The Rise of Subscription Models
Subscription models have been known as notorious disruptors of the CPG industry and have even seen to have more growth than ever before. The model thrives in replacing traditional brick-and-mortar stores with an entirely digital experience that offers a level of convenience that is hard to beat. Buyers no longer have to leave their homes or make their way through long lines in a store. Everything is delivered to them directly with a completely automated process, which saves a lot of time for consumers.
This particular model is currently experiencing exponential growth right now as a result of lockdowns because of the pandemic. Many of the subscription models leverage data in order to formulate precise recommendations that target a specific customer’s needs. With all the advanced machine learning algorithms being employed today, they can produce powerful results that prove valuable to these subscription-based brands and even the consumers themselves.
Extreme Product Personalization
For many years, the demand for more personalized consumer products has never stopped increasing over the years. Now, with new technologies available, the ability to personalize these products is even more possible now. By leveraging online assessments, machine learning, chatbots, and artificial intelligence, marketers and CPG brands are able to better understand shopper’s needs and consumer preferences.
The value of personalization has long since been well-documented by numerous companies. They’re effective ways of increasing sales and promoting customer loyalty. But investing in personalization means you need to invest in gathering vast amounts of data that you can utilize for future brand experiences. If placed in the hands of a capable digital agency, the data collected has the potential to bring in more customers and result in more conversions at scale.
While we are experiencing improving conditions as the pandemic is slowly being managed, there is still some uncertainty in many industries, including CPG. Industry players should focus more on consumer behaviors, new technologies, and food trends to ensure their success and survivability in the industry for the foreseeable future.
C/C/G is a strategically focused agency providing digital advertising in California. Our team offers full-service digital marketing services and is creatively driven to provide solutions to our clients. If you want to cut through the noise and connect with your customers, trust only C/C/G. Partner with us today!