Europanel Webinar – 26th September 2018

With the advent of online marketplaces, direct-to-consumer access is becoming a realistic option for CPG manufacturers. Using online marketplaces, manufacturers can sell directly to their consumers (for a fee) and make decisions regarding key factors such as retail prices without having to invest in retail space and logistic infrastructure.

Despite the potential offered by this new digital channel, consumers’ intrinsic need for immediate gratification outside of planned stock-up trips implies that brick-and-mortar stores will always remain an important part for most CPG manufacturers.

Given the continued importance of brick-and-mortar stores, CPG manufacturers have to monitor carefully the likely impact of online activities on offline success:

• Can brick-and-mortar retailer actually gain?
• Can category sales increase in the physical store?
• Do they change the competitive position of a brand on the retail shelf?
• How do they alter brand prices charged by the retailer?
• Moreover, can brands actively reinforce the potential positive billboard effects?

Using brand store openings on Alibaba’s Tmall, China’s largest online marketplace, this rersearch provides a first answer to these questions.