Consumer goods brands used to be able to rely on the consumer's whim. You forgot to use mouthwash before a job interview? You grab a pack of gum at the local pharmacy or corner store. You and your partner decide to stay in and have a movie night so you grab some snacks on the way home before cozying up.

But what happens in a world where people are no longer going into a physical store as often as they used to?

In this article, Ogilvy's Global Chief Executive Officer of Advertising Antonis Kocheilas explains why now is the time for CPG brands to go direct with intention and get personal with purpose.

If the explosion in eCommerce was a sea change for CPG brands, the Covid-19 pandemic was a tidal wave. CPG brands immediately had to pivot and fully embrace ecommerce and direct-to-consumer platforms in ways they never expected or imagined.

Online shopping has been the biggest tangible change amidst the pandemic, with eCommerce sales setting records across the globe. But Covid-19 hasn't only changed habits around physical shopping. It has rapidly accelerated tech adoption and consumer consciousness around the globe.

All of this has resulted in CPG brands understanding that they must embrace two strategies that they may have been avoiding - going direct and getting personal. While we've seen a boost in data-driven marketing; eCommerce adoption at scale; a shift in behaviors due to Covid-19; sustainability as a force for good and growth; customer centric products; and an emphasis on locality, in order to drive growth through doing direct and getting personal, CPG brands must understand how these new trends interact and feed off of each other.

The Shift to Online Shopping

The arrival of Covid-19 and the ensuing lockdowns were a seismic moment with major ramifications. But in some ways, the pandemic merely sped up some already ongoing trends - some that many CPG brands were in the midst of trying to adjust to. eCommerce and online shopping were chief among them, as huge swaths of the global population began to not only prefer these behaviors, but shift to them out of necessity.

For some CPG brands, this was a good thing. Brands with a focus on cleaning and cleanliness found great demand for their products, even if their supply chains and selling strategies weren't quite yet in lockstep with the new demand. Brands who rely on impulse purchases were on the other end of the spectrum, left figuring out how to replicate that moment in digital, tech-enabled experiences.

Wherever a brand was before the pandemic, they now have an incentive to maintain eCommerce as a key distribution method that goes direct to the customer. Companies can't only depend on figuring out a way to sell their products online, they need to continue to innovate in the space to ensure they're creating personal experiences that drive love of the brand.

The Increase in Data-Driven Marketing and eCommerce

As the digital revolution took hold, companies knew they needed to invest in data. But now that investment needs to not only be there, but be strategic and purposeful. For CPG brands, leveraging new and emerging technologies which strengthen their data capabilities is key, as these new data streams will allow companies to optimize their marketing spend and influence product decisions.

Brands increasing their data-driven marketing spend as they grow their eCommerce capabilities are interlinked efforts that can improve each other. The more a company invests in eCommerce, the more they connect with customers in the digital realm - and the more data they are able to access.

Companies can take advantage of these two trends by creating an integrated marketing ecosystem fueled by a data practice. This helps inform strategies to go direct that will result in meaningful experiences for the customer.

Balancing eCommerce and Sustainability Efforts

eCommerce represents a huge growth opportunity for all companies, particularly CPG brands. But a growth in eCommerce also negatively affects the environment; increased consumption brings about increased usage of nonreusable plastics and other products with negative environmental impacts.

In the past, brands might have been able to get away with their products and practices having this kind of impact on the environment. That is simply no longer the case. Nearly 60% of consumers report that sustainability is a key to their purchase decisions, an 80% increase from the previous year. Consumers will pay a premium for purpose-driven products, which places pressure on brands to activate their products as a force for good in the world.

Brands can no longer simply say they don't harm the environment - they must actively seek to make a positive impact on it and in the communities they serve. This presents a tough challenge for brands, who must manage a balancing act between their eCommerce growth and their sustainability efforts. If companies don't act mindfully with their eCommerce, they can hamper their progress in other areas and risk reputation damage.

How Sustainability and Locality Go Hand in Hand

Growing in eCommerce gives CPG brands the ability to reach consumers in new markets more easily. Emerging economies such as China, Russia, Brazil, and parts of Africa are attractive because of their rapidly-rising middle classes; by 2030, Asia could represent 2/3rds of the global middle-class population.

However, a tension exists between entering new markets and a company's sustainability efforts, too. Rapid growth in new markets can often force sustainability down the priority line. Each new market has its own environmental regulations, while also having a unique impact on carbon footprint and emissions. There's a lot to know and learn, and that can cause brands to skip steps in order to grow more quickly. But international growth without sustainability in mind may be fool's gold.

Keeping sustainability at the forefront may mean things take longer and be more arduous, but it's crucial to going direct and getting personal with intention and purpose. And it will create a much stronger foundation for longer-lasting growth.

eCommerce Makes the World Smaller

By 2050, 80% of the world's population will be in Asia and Africa. As companies look to scale their eCommerce efforts, these markets will become a key driver of new growth.

When entering new markets, brands must rely on their data capabilities to understand the nuances of the consumer in each location. eCommerce expansion can bring about an increase in sales, and also reams of new data. But data is only as good as the insights you glean from it. Making sense of data from new markets is critical, and data from one market can mean a totally different thing than similar data from another market.

It's imperative that CPG brands looking to enter new local markets do their homework, and enter with as good an understanding of the citizenry of that market as possible. Partnerships can be a massive help here, as companies that have operated successfully in a given market will inevitably hold some level of understanding in this area.

How Covid Led to Demand for Customer-Centricity

The pandemic didn't just change how people shop, it changed how they live. Priorities shifted, with more and more people focusing on their health and wellness. Self-care and healthy eating became a must for many, causing many brands to rapidly create new products that cater to healthier lifestyles. People now seek out brands who they feel are dedicated to their overall health, and they're willing to pay a premium for it.

That doesn't mean that certain brands should cease to exist. Brands can create different options for the health-conscious, and also focus on transparency around ingredients and the process of creating their product.

The key is that CPG brands stay on top of these consumer habits and adjust accordingly, leveraging their growing data capabilities and targeted marketing to increase exposure, knowledge, and expertise around these issues.

Conclusion – A Brave New World for CPG Brands

All brands, no matter the circumstance, must leverage the emotional connection that they have with consumers into an engine for growth. Demand for consumer products is still there - it's on CPG brands to renew the memorable experience that people have when they're buying or using the product. Tapping into that emotion is what builds a long-lasting connection between brands and consumers. It's what ultimately leads a person to not just buy a brand but buy into a brand.