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Technology Providing The Solution | The Daily Wobble


Technology Providing The Solution | The Daily Wobble

Amazon is, undoubtedly, the trendiest thing since pre-cut loaves. In more recent developments, ice remains frigid. What has been evolving, though, is Amazon’s progress in the consumer packaged goods (CPG) realm, typically the domain of physical stores. You could head to a marketplace for a packet of crisps, or opt to order numerous assortments through Amazon Prime. How can CPG manufacturers secure a larger slice of the earnings pie? The solution is crystal clear: combat technology with technology.

Credit: The MBS Group

Indeed, one key advantage Amazon holds over physical retailers is its perpetual tracking and monitoring of customer spending behaviors. You make a random purchase, and Amazon promptly suggests, “Here’s another random item you might fancy,” perpetuating the cycle. CPG producers struggle to gauge their consumer demographics, at least without Amazon’s assistance. The options? Either succumb to Amazon or navigate blindly in traditional stores. Some enterprises, however, have commenced enlisting artificial intelligence to level the playing field.

AI can efficiently handle data on deliveries and demographics, empowering CPG producers to bypass intermediaries and directly vend to consumers for profit. Certain brands have embraced this strategy for a couple of years now, yielding promising outcomes. Naturally, this clandestine conflict between CPG producers and Amazon likely won’t favor brick-and-mortar stores, but the recent surge in delivery services indicates that they are also finding their footing.

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