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Are CPG giants the losers of digital transformation?
Thomas Reiner | 21.02.2020
Many large brand owners are losing market share to small and very small players in the consumer-packaged goods market. While the market share of the giants in the US fell from 57.5% to 55.5% between 2013 and 2018, the small players were able to increase their share from 23.5% to 25.7%.
A reason for this is digital transformation. It levels out the sheer “advantage through size” that used to be the deciding factor and enables even small players to reach and supply consumers directly and in an unprecedented way.
Powerful, old barriers to market access have thus fallen. Online retail has established itself as a viable CPG channel. Large investments in building a brand or the exhausting fight for a place on the limited shelves have become unnecessary. The small and very small have settled in the formerly exclusive market of brand giants and are growing magnificently. They are fast, flexible and innovative.
If the big brands want to stand up to them, they can no longer reduce digital transformation to social media and e-commerce. They must face the new reality strategically. Only then can they create the space for urgently needed innovations.
