Matt BrittonFounder & CEO powering AI-driven consumer insights

The Amazonification of CPGs

Name: The Amazonification of CPGs
Uploaded: 2018-10-15T22:46:51Z
Channel: Matt Britton
Description: A short spoken monologue arguing that e-commerce has become the dominant purchasing channel and that retailers—most notably Amazon (which bought Whole…

15 Oct 2018

Watch on YouTube

A short spoken monologue arguing that e-commerce has become the dominant purchasing channel and that retailers—most notably Amazon (which bought Whole Foods and is expanding Amazon Basics) and Walmart (creating private labels)—are moving into low-involvement CPG categories. As a result, traditional brand-based CPG distribution via big mass retailers is weakening; private labels and retailer brands may displace many CPG products, forcing major incumbents (e.g., Coca-Cola) to adapt.

E Commerce is now the de facto way to purchase things. Amazon bought a company called Whole Foods. So now they're getting in the groceries and low involvement categories. Basically anywhere that consumers are, they're going. It used to be if you sold detergent or soap or toothpaste that your brand actually mattered. And as long as you can get Walmart or a big mass retailer to buy your stuff, you'd be fine. But in the world of Amazon, that model actually doesn't exist anymore. And what Walmart's starting to do is create its own brands. So if you're a consumer, what are you gonna spend more money on? Great value? The Walmart brand or French's mustard, when you don't really care about the brand of the mustard. And Amazon now is creating its own private label brand called Amazon Basics. And they're going into low involvement categories. And I think they're really gonna start to wipe out a lot of these CPGs. Now it doesn't mean that Coca Cola is going out of business tomorrow, but they best be looking to evolve their.