E-COMMERCE: BUILD, DRIVE AND EARN E-COMMERCE GROWTH FOR

E-COMMERCE: BUILD, DRIVE AND EARN E-COMMERCE GROWTH FOR RETAIL SUCCESS

TIMES & TRENDS

January 2017
Executive Overview
IRI's Times & Trends highlights new developments and critical events across all major CPG categories and
channels, providing powerful benchmarking data to help guide your strategic decisions. This report
examines e-retail as a phenomenal growth lever, and its rapid evolution into powerful marketing channel.

In Brief
The evolution of the CPG industry has been a story of disruption, where new channels have emerged
quickly and are adeptly competing for and winning market share from traditional players. As a percent of
industry sales, e-commerce account for only a small percentage of overall CPG sales. By 2022, the channel
will claim an average 10 percent of industry salesa bit less in food and beverage, but over 18 percent
across non-food aisles. But the impact of e-commerce doesnt stop at sales. Digital will influence some 77
percent of all retail salesonline and offlinethis year, with a retail value of more than $2 trillion.
Retailers are investing heavily in e-commerce, rendering old go-to-market strategies
obsolete. Retailers are moving quickly to engage and excite shoppers today, while their e-commerce
behaviors are in the formative stages, to set the stage for long-term success. Amazon is a top e-tailer,
with scale and dexterity that is paving entirely new paths to growth. Because the online environment is
markedly different than the brick-and-mortar world, brands that are category leaders offline are lagging
behind niche players in the online environment
CPG marketers can grow e-commerce sales up to 150 percent by building a strong online
presence and earning shopper awareness. Because consumers visit e-tail sites with a purpose in
mind, they are more open to buying than they are while theyre on media channels. To win in this new
environment, even traditionally brick-and-mortar brands must have a strong online presenceone that
facilitate the discovery process by providing key informationand ensure that their presence is
strategically located along the path to purchase.

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