a guest post by Will Jenkins, Redbox Digital
From time to time, the FindGood team reaches out to others in the industry to write on hot topics which are on advertiser’s minds. In this case, Will Jenkins of Redbox Digital explores the future of FMCG brands online.
It’s difficult; FMCG don’t want to upset the apple cart, the apple cart being in this case, giant global retailers, who sell a large amount of their goods both online and off. There are also cost considerations for FMCG – the margins rarely justify distribution of small amounts of goods direct or the setting up of expensive logistical operations. All this doesn’t mean there isn’t a way forward for FMCG online. We’ve created some scenarios which might provide a way for FMCG to sell online, as well enjoy a more direct relationship with its highest volume customer segments.
1) Brand licensing – this is a scenario we have explored with a number of global packaged goods companies. Loved brands have lots of heritage and lots of great imagery and aura. People genuinely love them and it provides an opportunity to create product range for people to buy – think Heinz Soup Bowls, Lurpak toast racks, etc. The entire operation can be outsourced at a relatively low cap ex cost and the manufacturer gets benefit from sales, the site can be used promotionally (on-pack vouchers or social media for discounts) and will collect the data of the most loyal super fans of the brands.
2) Bulk pack or very regular purchase – this could be more contentious from a retailer’s perspective but frequently bought higher margin bulk items could be disrupted and regular subscription type payments taken. Think the mum with twins or triplets receiving just the right amount of nappies or food on her doorstep fortnightly, your Brita cartridge turning up exactly when the last one expires, the replacement razor blades arriving at just the right time or the bulk pack of mineral water delivered direct. Consumers may even be willing to pay a premium or delivery costs for convenience
So there are two clear ways FMCG manufacturers could make use of direct to consumer sales and distribution.
About Redbox Digital: Redbox Digital is a full service digital marketing agency and ecommerce consultancy based in London that helps businesses of all kind create ecommerce sites, improve current assets and set up distribution, fulfilment and customer service to support ecommerce and deliver the right customer experience.
