Boston — A vast majority of CPG brands, 71 percent, report they are “merely keeping pace or catching up” when it comes to ecommerce, according to a joint survey conducted by Kantar Group and Profitero Ltd. Just 17 percent of survey respondents believe their organizations are ahead of digital shopping trends.
Most companies operate in “channel silos,” according to the survey of nearly 200 global brand leaders. For example, 40 percent of respondents report a lack of concrete goals or measurable objectives for ecommerce, while just 11 percent say each functional team in their organizations have specific ecommerce goals.
“While most organizations continue to prioritize ecommerce and employ solid strategies to build their businesses, there are several key areas that they can better embrace to reach the next level of growth. The key question now is what does ‘advanced ecommerce’ look like, and what will it take to achieve this,” says Rachel Dalton, director of ecommerce and omnichnannel insights at Kantar.
Pricing and profitability are the biggest concerns, the survey reveals, with half of brand owners ranking them as chief challenges. Adapting existing supply chain to fit digital sales models is the third biggest challenge, as reported by 40 percent of respondents.
“Our 2019 survey shows that most manufacturers have fully embraced ecommerce as a strategic necessity, but still have a long way to go when it comes to integrating it into every facet of the business,” says Keith Anderson, senior vice-president of strategy and insight at Profitero. “It’s evident that CEOs need to be investing more to modernize their organizations for digital transformation and most importantly, doing more to include eCommerce in the job descriptions of everyone in the company.”