In the new world of commerce, with various paths to purchase, it will be harder for brands to influence the consumer, writes Vanessa Matthijssen, Partner, Monitor Deloitte, Strategy Consulting.The rise of voice ordering and private label will see brands increasingly 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. This will create the ultimate test of the strength of the brand. Voice ordering will commoditise entire categories, with players like Amazon will capitalise on this by aggressively ramping up their private labels. All of this will comeat the expense of branded goods.
FMCG companies must face these challenges and provides guidance for brands on how to build truly meaningful direct relationships with consumers.
In order to be prepared and face these challenges, brands will have to shift from owning the aisle to owning the consumer. This means becoming truly meaningful to consumers by offering value beyond the product and establishing deeper connections based on shared values. Digital and data will provide endless opportunities to build this connection. However, this will require brands to make considered choices about when and how to engage with consumers and how to genuinely add value in the moments that matter.
- 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.
Consumers will connect with a company’s values, relevance and ambition beyond profit – not just with their products
How can brands usedigital technology to create meaningful connections with customers and stay top of mind?
To read more about how meaningful brands are connecting with consumers, download PWC’s report here.