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Connecting with the consumer in the new world of commerce
In the new world of commerce, with various paths to purchase, it will be harder for brands to influence the consumer. And with the rise of voice ordering and private label, brands will increasingly be at the mercy of an algorithm. This will create the ultimate test of the strength of the brand.
In the new world of commerce, dominated by eCommerce and voice ordering, brands will have to shift from owning the aisle to owning the consumer and become more connected on social values and offer services beyond the product in moments that matter. With voice ordering set to commoditise entire categories, players like Amazon will capitalise on this by aggressively ramping up their private labels. Brands will increasingly be at the mercy of an algorithm that will likely favour smaller brands and the platform’s private label. Unless the consumer truly loves the brands and is willing to override it. Will your consumer ask explicitly for your brand?
This paper seeks to prepare FMCG companies to face these challenges and provides guidance for brands on how to build truly meaningful direct relationships with consumers.
- Various new paths to purchase are emerging (e.g. omnichannel plays, B2C market players and consumer to consumer selling platforms), making it harder for brands to influence the consumer and access data.
- Key players like Amazon, Alibaba and Walmart are rapidly gaining power through consolidation and their power will be further amplified when voice ordering and private label ramps up.
- Currently 3 out of 4 brands don’t add meaningful value to consumer lives. Brands will have to become better connected and more meaningful to consumer to survive and thrive in the new world.
- Digital is creating endless opportunities to connect directly with the consumer, so now is the time for brands to become truly strategic about the type of engagements that create value for consumers and earn the right to own their hearts.
Published: May 2018