NEW YORK: Mondelez International believes that ecommerce presents huge opportunities for growth, despite most consumer-packaged goods (CPG) manufacturers being slow to embrace this approach.
Bonin Bough, svp/chief media and ecommerce officer at the company – which owns brands like Oreo, Cadbury and Honey Maid – discussed this strategy at Internet Week 2015.
"We came to the realisation that, if we wanted to unlock additional growth … putting media and ecommerce together was such a likely fit," he said. (For more, including four potential business models in this space, read Warc's exclusive report: Ecommerce for CPG brands: insights from Mondelez International.)
And this "fit", he added, results from the fact new media removes the gap between shoppers discovering products or encountering marketing messages on the one hand and the chance to buy goods on the other.
"The beautiful thing about digital is that you can market and close in the exact same space, but you can't really do that in most traditional worlds," said Bough.
"Now, our goal is to figure out not only how to do that in the digital space, but also how to extend that and do that in the traditional [space]: how do we connect with the consumer, then actually close and remarket?"
According to predictions from Mondelez International, online packaged-goods sales could top $3 trillion in the next five years.
During the same period, the internet's share of revenue among these firms is pegged to rise from 2% to approximately 10%.
More broadly, digital should deliver in advance of 50% of category growth going forwards, the organisation forecasts.
"All the staples that are changing the business of digital today, we believe we can try in the CPG space. And we think nobody in the marketplace is doing that," said Bough.
"And nobody has uncovered that because we are treating it just like a channel, not like an entirely new, future digitised mix."
Data sourced from Warc