E -commerce solutions fulfill shopper needs in ways that brick-and-mortar channels cannot match. As a result, digital shopping has transformed entire industries, such as music, books and travel.  A new report from Nielsen examines the impact of digital on Consumer Packaged Goods (CPG) and seeks to lay out key principles for marketing success in a world where digital is the new standard.

Are clicks destined to replace bricks in the consumer packaged goods (CPG) industry?  E-commerce in CPG has undoubtedly grown at an impressive rate and is estimated to continue to grow at 25 percent through 2015. However, it only represented two percent of sales in 2011, despite being the fastest growing channel.

“For CPG products, online shopping will not completely replace trips to stores anytime soon. However, digital will continue to play an increasingly important role. Manufacturers and retailers will benefit from examining both the marketing and the sales/e-commerce opportunity afforded by digital,” said Nikhil Sharma, Vice President, Consumer & Shopper Analytics at Nielsen.  “In an industry with modest growth like packaged goods, e-commerce will likely grow at the expense of more traditional channels, and may be a risk to some businesses unless appropriately addressed.”

“The keys to success in the digital shopping environment is understanding shopper needs, how a product category gets shopped and the digital touch-points that influence shoppers’ decisions along the path to purchase,” said Jeanne Danubio, Senior Vice President, Consumer & Shopper Analytics at Nielsen.  “We have identified two barriers and two enablers that translate into convenience, choice, and price-value for a shopper.”

Consumers continue to want to satisfy three fundamental needs when they shop: convenience, choice and value for their money.  Convenience is the ability to deliver a shopping solution that requires less time and effort. Choice is simply more variety to cater to a broader set of consumer needs. Price-value is the level of quality delivered at a certain price point. Some categories are better candidates for selling online than others.

To learn more about Digital Shopping and its impact on the CPG industry, please download our White Paper.