P&G sees 'blending' of online and offline shoppers | WARC | The Feed
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P&G sees 'blending' of online and offline shoppers
Procter & Gamble, the consumer-packaged goods (CPG) manufacturer, believes a “blending” of customers across digital and physical channels is collapsing old ways of thinking about retail.
The company’s e-commerce sales are up by 50% for its current fiscal year, the third quarter of which ended on March 31st. And this channel, it reported, is now responsible for 14% of sales, with aggregate market share growth standing at 40 basis points for the last quarter.Why it matters
With e-commerce spend rising as a consequence of the COVID-19 pandemic, large CPG companies have accelerated their efforts at digital transformation. And these efforts can be expected to continue for the longer term.P&G’s strategic priorities for digital commerce
- Digital commerce is “as important for Walmart or Target as it is for Amazon or Alibaba,” Jon Moeller, P&G’s chief operating officer, said on an earnings call with investors.
“When we think about channel differences, that historically, in the past, was a customer difference. That’s no longer the case. So, there is a blending that’s occurring, as well.”
- Product superiority is the “biggest opportunity” in e-commerce,” said Moeller. For digital buyers in categories where performance drives choice, this consideration matters “as much as it does in every other channel,” he said.
- Adapting packaging – for instance, to make sure liquid products “survive the journey to a consumer’s home” and a customer “opens a product with delight” – is another priority.
- The strength and equity of P&G’s brands helps ensure “in the search top results” for people looking for products, said Andre Schulten, P&G’s chief financial officer.
- With click-and-collect becoming more widespread, P&G’s robust logistics network can make sure its goods remain in stock.
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