Are Digital Retail Models Defeating The Brick And Mortar Businesses?

The latest sales reports depict that the consumer packaged goods or CPG are considered to be the most rapidly growing consumer product categories which are sold online over the next 10 years.

According to SEO services in india what these CPG startups are doing is to capitalize by gaining the entire customer experience. These brands know it very well how to give their target audience the shopper-customer experience in the best possible way. Rapidly growing direct-to-consumer digital retail models are effectively disturbing the status by integrating the CPG world with traditional retail. Gaining the end-to-end customer experience helps these budding companies to gain serious presence that threatens them to the extent their legal teams come out.

How is this change affecting?

1.The overall costs of brick and mortar retail quickly hand over the advantage to digital retailers who drive it all or  increase rate of sales volume digitally.

  1. CPG brands yield a much better margin at the unit economic level when they sell the products directly to the customers.The transaction for the CPG company is incredibly profitable when they’re selling at the manufacturer’s suggested retail price as opposed to wholesale prices.
  2. The most important advantage these integrated brands have is owning the customer experience.

For large, established, necessary retailers to adapt, companies need to develop strong digital channels. The threat this integration presents to the status quo is based on two scenarios:

1.CPG companies have to give it a thought:

CPG companies need to think more  precisely, creatively and with complete planning about how to bring in sales volume through digital retail channels along with more of the shopper experience and the much stronger customer experience.

2.Retailers have to enhance:

Retailers need to ask themselves if they can afford to take the risk of not doubling down on their digital capabilities. Retailers win when they provide customers with their way to buy the products they prefer.

Experts from SEO company in Bangalore say that CPG retail sales have been slower to earn e-commerce recognition. These have so low levels that they are no indicator of future market behavior. Every brand needs to be recognized digitally and this is it. Brick and mortar stores are helping people locally but they need to have their online presence too.

The upcoming brands are therefore gaining importance soon because these primitive retailers are not interested in grabbing new opportunities. But they should understand that this will no longer help them to run their business because if you are not online then you are not actually present. So, everybody needs to think all over again in order to pick up this new digital retail model. If these brick and mortar businesses do not wake up these fledging brands will soon make their place on the place of these old businesses.


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