If the past two years have taught us anything, it’s brands that adapt to global trends come out on top. COVID-19 has completely upended the way consumers shop, and as a result, the way brands strategize. This is especially true for the consumer packaged goods (CPG) industry, where immersive marketing, streamlined processes, and omnichannel brand experiences are shaping the industry in a post-pandemic world.
Clearco, The world’s largest e-commerce growth platform, identified a six key considerations that are set to shape the CPG space in the second half of 2022 to help align your marketing strategies with current (and future) consumer demand.
Trend #1: Consider the conscious consumer
Consumers today are looking to purchase increasingly from brands that go the extra mile to challenge the status quo, especially as it relates to sustainability and labour practices. Conscious consumerism was on the rise before COVID-19, but the pandemic put this CPG trend into overdrive. Remember that how you choose to appeal to the conscious consumer should be authentic and align with the values of your brand; in 2022, consumers won’t fall for performative gestures that ring false.
Trend #2: Prioritize data protection
Data breaches are on the rise. The CPG industry in 2022 will need to work hard to protect its consumers’ data—otherwise, winning consumer trust will be almost impossible. Brands should be adhering to data protection best practices while demonstrating to customers their unwavering commitment to privacy. To put consumers’ minds at ease, you should consider making your business’s data privacy practices public on both your website and across other channels (like social media).
Trend #3: Revamp your supply chain
Massive supply chain disruptions have plagued the CPG industry in the last two years. In 2022, many brands are reinventing their supply chain strategies in order to avoid the mishaps from past years. But navigating rising shipping costs and persistent delays will remain a challenge. CPG brands should consider a range of solutions to streamline processes, including maintaining an in-house supply, localizing delivery, and addressing last-mile costs. Brands across the board should be establishing a robust supply network that leverages real-time, consumer-centric data to help boost supply chain resiliency moving forward.
Trend #4: Build a seamless, omnichannel experience
For CPG businesses, it is no longer sufficient to build out exceptional in-store and e-commerce brand experiences. In 2022, consumers are looking for brands that will seamlessly weave the two components of their shopping experience into one. Make sure your marketing budget reflects this trend, including investing in channels like digital ads, social media, and influencer marketing. In today’s fast-paced world of e-commerce, consumers are seeking (and have become accustomed to) integrated experiences that deliver a hassle-free product in record time.
Trend #5: Zero in on first-party data
Following Google’s plan to eliminate third-party cookies in 2023, many brands have turned to gathering first-party data at key touchpoints. Any marketer will tell you first-party data is a goldmine of information, allowing brands to understand consumer behaviour and build personalized experiences. In 2022, CPG companies will need a strong direct-to-consumer strategy to collect and act on first-party data, including investing in their own databases and looking at long-term trends.
Trend #6: Focus on complex, segmented customer journeys
We live in an era where consumers are constantly seeking the next best brand experience. What does that mean for CPG companies? It means you’ll need to offer personalized, targeted services to build a lasting relationship with your customers. These could include loyalty programs, subscription-based billing models, and immersive shopping experiences. Today, the traditional customer journey no longer cuts it. With the rise of hyper-personalized journeys, brands are increasingly catering to their customers as individuals, rather than broad user segments.
The bottom line? Change is the name of the game
To succeed in the CPG space in 2022 and beyond, brands need to be nimble, customer-centric, and highly efficient. Leveraging the trends above should give you a head start as you develop strategies to differentiate your business from the competition while catering to fluctuating consumer preferences. With D2C brands on the rise, competition is stiffer than it’s ever been, and consumers are more demanding than they’ve ever been. They expect fast, convenient, and personalized experiences—anything less and they’ll be quick to switch to a different brand.
Are you interested in growing your e-commerce brand in 2022? Learn how CPG financing could be the right fit for you and your business.