How CPG Companies Need To Innovate For The Millennial Generation
America's largest manufacturers of consumer packaged goods (CPG) like Procter & Gamble are at a real crossroads. After decades of success based on powerful grocery and big box distribution the category now needs to react to the disruptive growth of Amazon within low involvement categories.
In order to thrive in this new world, the category will have to reinvent its business models; not just devise new brand extensions or clever marketing tactics. One example is for a brand like Tide to begin to manufacture and distribute smart washing machines and in doing so evolve their distribution focus from retailers like Wal*Mart (who are competing with their own private label brands) to owners of large urban apartment complexes to gain intravenous in-home distribution to a new generation of Millennial buyers.
It will be interesting to see how this space evolves in the years ahead.