More CPGs to be Sold Via E-Commerce and Supercenters
As e-commerce continues to impact consumer shopping, analysts expect some sales channels to suffer more than others when it comes to the CPG category. Specifically, between now and 2015, Nielsen analysts are looking for supercenters and e-commerce sites to increase their dollar share of total channel sales by 5 points. These changes also suggest that marketing budgets for CPG are likely to change.
Nielsen studies show that in 2001, the combined sales of club, e-commerce and mass supercenter channels comprised about 11% of CPG dollar sales. By 2015, that amount will increase to 29%. These increases mean other sales channels must lose market share. According to Nielsen, channels that have lost or just maintained channel share include:
- Mass merchants
- Convenience stores
- Home improvement vendors
- Drug stores
The Nielsen report also indicates that specific formats which are still in a growth stage of their life cycles – pet stores and consumer electronics – will increase market share at least through 2015. Specialty retailers that will not fare as well include toy stores, book stores and liquor stores.
Todd Hale, senior vice president, Consumer & Shopper Insights, The Nielsen Company predicts that retailers will consolidate as they compete on a national level and seek opportunities linked to a larger scale. At the same time, CPG professionals will work with retailers to develop online and social marketing and brand/banner-specific apps to increase consumer loyalty, build sales and create a competitive advantage. Hale also warns CPG professionals that traditional media will deliver shrinking returns as we approach 2015.[Source: Nielsen Unveils Retail 2015 Forecast. Nielsen.com. 15 Jun. 2010. Web. 3 Aug. 2010]