Shopper Marketing - August 2017 - 32
or five years ago when it started taking share away from retailers like Whole
Foods," Abdo says. "But they're going
to have to make drastic changes and improvements in e-commerce, given all of
the competitive advantages that Amazon brings to the table."
There is a lot at stake for the entire
CPG industry. Currently, e-commerce still
only accounts for about 1%-2% of total
CPG sales. However, by 2022, the e-commerce channel will claim an average 10%
of sales - slightly less in food and beverage, but over 18% across non-food aisles
- according to a recent report by IRI.
In 2016, pet care was the fastest growing online CPG category (up 67%), followed by laundry/dish detergent (62%),
household cleaners (60%) and health/
OTC (48%), according to a recent report
from 1010data. The popularity of pantry
box subscription services from Amazon
and others has contributed significantly
to this growth, particularly in household
cleaners and personal care products.
Amazon's staggering growth has drawn
comparisons to Walmart in the 1990s,
y SHOPPER MARKETING AUGUST 2017
Estimated U.S. market share
of food and beverage sales
Source: Susquehanna Financial Group
while its brand often gets compared to
the likes of Apple. The latter comparison
heated up in June when Apple unveiled its
smart/speaker device HomePod to challenge Amazon's Echo. Interestingly, Amazon ranked No.2 behind Apple in this year's
Fortune survey of most beloved brands,
generating the highest score for being
"available when and where I need it."
Think about it: Of the entire universe
of brands that consumers say they can't
live without, Amazon is right on the heels
Now that's scary.
Catapult is a conversion marketing agency, where
branding and buying are part of a total solution. Catapult's
data-driven approach identifies the core, actionable insights
that inspire brilliant creative with the power to convert
consumers into shoppers, shoppers into buyers, and buyers
into loyal advocates. Catapult delivers channel-agnostic
solutions that are brand savvy, retailer smart, and digitally
enabled. Catapult is an Epsilon brand. Visit them at
www.catapultmarketing.com and on Twitter @catapultmktg.