How Is It Impacting the CPG Industry?
The retail and shopping landscape is changing rapidly. We will be the retail space grow, expand, and improve more in the next ten years than it ever has before. Retail is beginning to focus on the consumer over the actual product, as customers are seeking more personalization, efficiency, and control over their shopping experience.
This evolution has forced retailers and CPG companies alike to change the way they sell their products and market them to consumers. Since they will be forced to focus less on their products and more on their customers, future success of retail and manufactures will rely on creating a deep understanding and connection with their customers by learning what they want, what they need, and how they can make the shopping experience that best it can be. This will include major improvements in technology in both the retail and CPG space and an ever-evolving progression to new and better ideas and techs.
There have been a lot of improvements and innovations in the retail technology sphere, which in turn forces CPG companies to change with them as well. Retail stores will see major upgrades in the coming years, from smart shelves to interactive kiosks to smart shopping carts. These big innovations will mean CPG companies must change the way they make and promote their products and brand as well.
Therefore, if big retail stores all have smart shelves installed in their stores, competition between private small labels and big CPG companies is only going to increase. Shoppers are constantly looking for more efficiency and personalization when they are out shopping. There are hundreds of products in stores that all do similar things, so the ability for brands to stand out amongst their competition is necessary.
Retail stores will begin to use consumer-focused technology to make their shopping experiences better. Smart shelves will do just that. Smart shelves, particularly in grocery stores, will have digital displays filled with information for the customer. It will show price, nutritional value of the food, and will even play short videos to attract customers to certain products. CPG companies must embrace this technology and find the best ways they can connect with their customers to attract interest and produce more sales.
Smart shelves will also eventually communicate with a shopper’s smart phone. As the shopper walks down a store aisle, the grocery list on their phone through a special app will communicate with the smart shelf to alert the shopper about the item and match them up with the best option. This will help the shopper quickly locate items and pick the best brand in a sea of options.
Although this is convenient for the shopper, it will force CPG companies to step up their game and make sure all facets of their product make them one of the best brands. CPG companies much know their target customers inwards and out and know how to attract their attention. Therefore, having competitive pricing, eye-catching video adds, and offering promotions and sales will be imperative to their success.
These smart shelves and apps will even be able to alert customers to brands that fit into their special dietary needs. For instance, if you are vegan, it can be challenging to see which power bars are vegan in a sea of other power bars that are not. The smart shelf and app would work together to help suggest which vegan power bars are the best options by lighting up the products in a color of your choice to point you in the right direction.
Again, CPG companies will need to make sure their products offer enough variety to cater to the many different diets, preferences, and needs all individual customers have. If these companies fail to expand their products to meet more customers, they are going to fall behind their competition and become an afterthought to consumers.
Although CPG companies may find it challenging at first to find their way through these new murky waters, it will be necessary to make these improvements in order to stay competitive in this new technology driven retail landscape.