Source: Fortune
Summary
Traditional consumer packaged goods companies are struggling to adapt to a changing market where social media influences consumer behavior. The old model of creating demand through national ad buys and achieving scale through mass production no longer works. New direct-to-consumer brands are emerging to serve niche tastes, and retailers’ private label brands are innovating faster than big CPG companies. According to a recent survey, half of respondents tried a new recipe based on social media, and 42% tried a new product.
Our Reading
The numbers tell one story. Big CPG companies like PepsiCo and General Mills are struggling to keep up with changing consumer trends. They are trying to acquire emerging brands, but these startups often plateau at $50 million in sales. Retailers’ private label brands are moving faster, identifying trends and developing products quickly. Companies like Unilever are shifting their ad budgets to social media and influencer marketing. The traditional CPG model is no longer working, and companies need to innovate faster and build for niche audiences. The old playbook is broken, and it’s time to rewrite the rules.
Author: Evan Null
