The Scope of eB2B Platforms in the Consumer Packaged Goods Industry
An outline of the relevance of CPGs in the current scenario and the role that eB2B platforms could play in the expansion of the market.
An outline of the relevance of CPGs in the current scenario and the role that eB2B platforms could play in the expansion of the market.
The products that customers regularly utilize in their day-to-day life and eventually replace on a frequent basis aretermed as Consumer packaged goods (CPGs). For instance, food, beverages, cosmetics, cleaning products, and many more are an essential part of one's life and eventually need timely renewals. The constant demand by consumers for such goods consequently creates a need for their steady production and sale in the market. In 2021, consumer packaged goods generated a revenue of over ~USD 2000 billion worldwide. Their distribution among consumers is achieved via two modes, namely offline and online. Although offline sales channels dominate the market, a shift in consumer behavior has been observed recently caused by the rise in digitalization, especially after the pandemic. An increase in the number of online platforms has also been a significant attribute in booming online sales. Additionally, the platform of eB2B marketplace has helped in buying and selling goods by linking up businesses with customers in various organizations. The CPGs market has witnessed tremendous growth in the last couple of years because of transactions of such bulk orders. Customers demand the following capabilities when using a PC or even a mobile device, such as orders to be placed at any moment, particularly recurring or standing orders, obtaining product details, and utilizing self-service tools for creating invoices or billing! Additionally, CPG has obtained a deeper, more comprehensive understanding of its operations and performance due to eB2B platforms' integration with a company's pre-existing internal systems, such as ERP systems and CRM.
1.Capacity to incorporate dynamic customer demands: People today prefer living in the present rather than the future. In the time when instant noodles are the trend, people believe in having instant solutions to their problems as well. Quick & easy supply for their ever-changing everyday needs is the need of the hour. Because customers can access self-service features via the e-commerce platform and businesses can check client orders promptly via the connected ERP system, CPG can handle even the greatest customer demands around the clock.
2.Ensures a smooth ordering process: All consumer data is gathered and saved for simple access when orders are placed directly through the e-commerce platform. With this level of service, both the consumer and the supplier have a seamless ordering experience because ERP, CRM, and e-commerce systems handle and process everything. Employees are able to quickly access the data they require, such as order numbers, delivery addresses, payment details, etc., on a single platform, which helps to optimize customer service procedures.
3.Builds fresh opportunities for analytics: When examining opportunities for improvement in business performance, data is tremendously important. eB2B platforms enable CPG companies to quickly collect, analyze, and provide special insights into the data that may affect business choices on items like:
One may improve their product and service offerings, understand the customers better, and focus on the activities that bring in the greatest revenue for the business using these data. An eB2B platform provides CPG firm the leverage it needs to increase reach, save operating costs, and boost income when used in conjunction with the current business systems.
1. Reduces spending on services for clients: A sizable percentage of the procedures that take place on the customer-facing side of the organization can be automated using eB2B systems. Online portals enable the efficient completion of tasks that would otherwise take a salesperson a long time to perform, such as processing payments or checking inventory. The sales team also has more time to concentrate on other revenue-generating business projects since they won't be burdened with as many chores.
2. Enhances and creates enduring customer relationships: eB2B platforms offer a variety of capabilities that aid businesses, but they also benefit customers and strengthen their relationships. Utilizing various elements that simplify the ordering process for customers through online ordering systems increases customer satisfaction and ensures that they stay a customer for years to come.
3. Boosts productivity with regard to order automation: All orders are processed through the online store, thus this automated system makes sales quick and easy. Customers have easy access to the display of pricing, inventory, shipping, and even discount information before, during, and after the transaction. Customers place orders for the supplies or equipment they require, pay for the items, and receive delivery information without ever having to speak with a salesman. And with just the push of a button, everything is accomplished.
We may note that the digital platforms that service retailers make up roughly 80% of the eB2B market, while platforms that serve wholesalers make up the remaining portion. Higher spending on eB2B platforms and deeper penetration among merchants across all categories bring about significant growth in transactions. India's retail market, which is dominated by general commerce, is currently valued at ~USD 940 billion, according to the research. Despite the fact that there are fewer platforms that offer multiple categories of goods, including groceries, electronics, and clothing, the report notes that this technique helps lower credit costs and improve go-to-market strategies. Also, since they offer possibilities that are wider and more complete than those that have historically been offered, these eB2B ecosystems are appealing to independent enterprises including fragmented retailers, end users, and CPG makers. By incorporating components like loyalty programs, promotions, in-store execution, financial services (including loans and insurance), and multicategory one-stop shopping, eB2B platforms help fragmented merchants strengthen their value proposition. Numerous of these prospects address persistent problems and matters of competitive disadvantage for owners of dispersed retail outlets. Similar features, like live transactional data and live business-to-business-to-consumer (B2B2C) promotions to end consumers, are now accessible to CPG makers and consumers. Today, eB2B enables CPGs of all sizes to carry out promotions for end users at a low cost and with a shorter time to market.
Businesses need to be aware of the growing influence of Gen Z as the globe enters a new era of e-commerce. They are liable for ~41% of the worldwide consumer market and display enormous purchasing power of over ~ USD 140 billion. Furthermore, Gen Z is significantly impacted by social media, unlike prior generations. A staggering 97% of Gen Z consumers consider social media as their prime source of inspiration for purchases. The path to market for traditional trade has been revolutionized by the introduction of eB2B platforms and GenZ has adapted to the changing norms most swiftly than any other generation. Consequently, the brands have switched to eB2B marketplaces to power antiquated supply chains and have been delivering efficiencies through a renewed focus on technology - Data, Intelligence, and Mobility. However, consumer brands in emerging markets must contend with a number of inefficiencies, such as rising prices in conventional distribution networks and built-in inefficiencies in operating models. The roles of distributors, stockists, and retailers have changed, and intuitive judgments rather than real-time data and insights are used to estimate demand. eB2B solutions for CPG companies have enabled them to centralize ordering processes, thereby simplifying the lives of their clients.
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