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CPG Manufacturers
Should Do More
DTC/Direct Sales
             Dr. Augustine Fou
             http://linkd.in/augustinefou
             March 2013.


-1-                             Augustine Fou
Online CPG Sales Jumping Up

  Source: Nielsen, via eMarketer Oct 2012




-2-                                         Augustine Fou
Incentives to Shop CPG Online



                   Source: Integrated
                   Marketing Services via
                   eMarketer, May 2012




-3-                                Augustine Fou
Stronger Shopper Insights from
Digital/eCommerce
                 Sharing shopper insights, offering
                 cross-merchandising opportunities
                 and giving consumers auto-
                 replenishment and shopping list
                 applications on their sites are ways
                 etailers can help brands increase
                 sales, according to a Q2 2012
                 survey of manufacturers conducted
                 by etailing solutions.


                  Source: etailing
                  solutions via
                  eMarketer July 2012
-4-                                        Augustine Fou
Examples
From Different Industries


-5-                         Augustine Fou
L’Oreal – direct sales via site


 Tuesday 5 February 2013
 The cosmetics company L’Oréal Paris has announced that it will
 launch its own online store, where its entire product line will be
 available for purchase. While most luxury cosmetic brands in
 France have widely been available online for some time, many
 mass market cosmetic brands have avoided setting up their own
 on-line shops so as to not upset their all-powerful mass retail
 clients.
-6-                                                         Augustine Fou
Intuit       >50% via e-commerce




      From boxed          Online
      software at      e-commerce
        Costco

-7-                                 Augustine Fou
Digitally Mature Companies
Significantly Outperform Everyone Else
                                       High technology
                                       Banking
                                       Insurange
                                       Travel/Hospitality
                                       Telecom
                                       Retail
                                       Consumer Goods
                                       Utilities
                                       Manufacturing
                                       Pharmaceuticals

               Source: Cap Gemeni Consulting, Nov 2012
-8-                                                Augustine Fou
Related Articles
      Manufacturers Go Direct
      By: Augustine Fou, Nov 9, 2012

      Digital Maturity by Industry
      By: Augustine Fou, Nov 7, 2012

      Digital is a Philosophy
      By: Augustine Fou, March 31, 2011


-9-                                       Augustine Fou
Dr. Augustine Fou – Chief Digital Strategist
   “I help clients leverage digital
   tools and techniques to create
   sustainable competitive
   advantage.”
   FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM)
   MCKINSEY CONSULTANT
   CLIENT SIDE / AGENCY SIDE EXPERIENCE
   PROFESSOR AND COLUMNIST
   ENTREPRENEUR / SMALL BUSINESS OWNER
   PHD MATERIALS SCIENCE (MIT '95) AT AGE 23


   ClickZ Articles: http://www.clickz.com/author/1151/augustine-fou
   Slideshares: http://www.slideshare.net/augustinefou
   LinkedIn: http://www.linkedin.com/in/augustinefou

- 10 -                                                                Augustine Fou

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CPG Manufacturers Should Do More DTC Direct Sales by Augustine Fou

  • 1. CPG Manufacturers Should Do More DTC/Direct Sales Dr. Augustine Fou http://linkd.in/augustinefou March 2013. -1- Augustine Fou
  • 2. Online CPG Sales Jumping Up Source: Nielsen, via eMarketer Oct 2012 -2- Augustine Fou
  • 3. Incentives to Shop CPG Online Source: Integrated Marketing Services via eMarketer, May 2012 -3- Augustine Fou
  • 4. Stronger Shopper Insights from Digital/eCommerce Sharing shopper insights, offering cross-merchandising opportunities and giving consumers auto- replenishment and shopping list applications on their sites are ways etailers can help brands increase sales, according to a Q2 2012 survey of manufacturers conducted by etailing solutions. Source: etailing solutions via eMarketer July 2012 -4- Augustine Fou
  • 6. L’Oreal – direct sales via site Tuesday 5 February 2013 The cosmetics company L’Oréal Paris has announced that it will launch its own online store, where its entire product line will be available for purchase. While most luxury cosmetic brands in France have widely been available online for some time, many mass market cosmetic brands have avoided setting up their own on-line shops so as to not upset their all-powerful mass retail clients. -6- Augustine Fou
  • 7. Intuit >50% via e-commerce From boxed Online software at e-commerce Costco -7- Augustine Fou
  • 8. Digitally Mature Companies Significantly Outperform Everyone Else High technology Banking Insurange Travel/Hospitality Telecom Retail Consumer Goods Utilities Manufacturing Pharmaceuticals Source: Cap Gemeni Consulting, Nov 2012 -8- Augustine Fou
  • 9. Related Articles Manufacturers Go Direct By: Augustine Fou, Nov 9, 2012 Digital Maturity by Industry By: Augustine Fou, Nov 7, 2012 Digital is a Philosophy By: Augustine Fou, March 31, 2011 -9- Augustine Fou
  • 10. Dr. Augustine Fou – Chief Digital Strategist “I help clients leverage digital tools and techniques to create sustainable competitive advantage.” FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM) MCKINSEY CONSULTANT CLIENT SIDE / AGENCY SIDE EXPERIENCE PROFESSOR AND COLUMNIST ENTREPRENEUR / SMALL BUSINESS OWNER PHD MATERIALS SCIENCE (MIT '95) AT AGE 23 ClickZ Articles: http://www.clickz.com/author/1151/augustine-fou Slideshares: http://www.slideshare.net/augustinefou LinkedIn: http://www.linkedin.com/in/augustinefou - 10 - Augustine Fou
  • 11. APPENDIX - 11 - Augustine Fou
  • 12. Percent of Sales via Ecommerce by Industry, in UK Music – 80% Books – 53% Electricals – 42% Clothing – 14% Housewares – 11% Furniture – 6% DIY & Gardening 5% Food – 5% Health & beauty 5% Source: eMarketer, Dec 2012 - 12 - Augustine Fou
  • 13. Growth in UK Online Buyers Source: eMarketer, Dec 2012 - 13 - Augustine Fou
  • 14. UK Retail Ecommerce Sales Source: eMarketer, Dec 2012 - 14 - Augustine Fou