Agile startups and empowered shoppers are slowing the growth of established consumer packages goods (CPG) companies. To reclaim growth, established CPG companies are embarking on a “move to modern.” That is, they are reconsidering not only how they compete, but also how they build and sustain relationships with their customers. Learn more: https://accntu.re/2lUOxmS

1. ECOMMERCE
AREYOU
READYTO
MOVETO
MODERN?

2. THEDIGITAL
DOWNSIDE
2
Digital has leveled the playing field and
small players pose a considerable threat.
Copyright © 2018 Accenture All rights reserved.
TO RECLAIM GROWTH,
TRADITIONAL CPG
COMPANIES MUST
“MOVE TO MODERN.”

3. SMALLERCPGs
POSEAMAJOR
THREAT
3Copyright © 2018 Accenture All rights reserved.
+49%
+3%
-2.7%
Small CPG
growth
Large CPG
growth
Market share
of large US
CPG firms
has declined
since 2011

4. THESLEEPING
GIANT
4
2/3 of CPG spending takes place in stores
BUT…
57% of consumers already purchase some
CPG products online. And that percentage
is growing.
Copyright © 2018 Accenture All rights reserved.
HEREIN LIES THE
MODERN OPPORTUNITY

5. FOLLOWTHE
MONEY
5
Annual online sales growth of 8.8% far
exceeds growth rates in other channels
(2.7% for large-format stores and 1.6% for
discounters).
E-commerce will be the fourth largest
channel for CPG sales by 2022.
Copyright © 2018 Accenture All rights reserved.

6. TRACKTHE
SENTIMENT
6
Consumers are moving online for a number
of reasons:
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86% 84% 81%
look for items
not available
in stores
want the
convenience
of home
delivery
expect to
find lower
prices

7. CHASE
THEVALUE
7
CPG companies can’t ignore the
eCommerce potential.
Global online sales revenue:
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2010 2016 2022
$21
billion
$60
billion
$108
billion
for top 10
markets

8. 8
CPGECOMMERCEREVENUEPOTENTIAL
FORTHETOP100MARKETSEXCEEDS
$100BILLIONBY2022
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RANK* MARKET 2015 2022e GROWTH
China 5.5 9.2 66
US 1.3 2.2 68
UK 4.7 6.8 45
Japan 2.2 3.5 54
France 3.2 4.5 41
S. Korea 6.5 7.9 21
Germany 1.0 2.0 101
Brazil 0.5 1.6 198
Australia 2.5 4.0 61
Spain 1.8 2.8 51
1
2
3
4
5
1
3
8
9
UK $10B
$8B
CHINA $58B
2
6
7
10
5
$2.4B
$1.5B
$5B
$2.4B
$4B
$2.3B
4
US $14B
6
7
8
9
10
*PENETRATION (in percentage)

9. 9
PROJECTEDONLINEPENETRATIONOF
PRODUCTCATEGORIESIN2022
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CATEGORIES %/COUNTRY (TOP 3)
Nappies, diapers
and pants
68/KR 40/CN 18/GB
Baby food 54/KR 33/CN 12/GB
Skin care 27/CN 20/US 15/GB
Set kits 23/US 22/CN 17/JP
Baby and child
specific products
35/CN 19/GB 15/KR
Color cosmetics 31/CN 19/JP 17/GB
Fragrances 31/KR 30/GB 19/JP
Sanitary protection 15/CN 13/KR 5/GB
Men’s grooming 23/CN 17/GB 12/KR
Bath and shower 12/CN 14/GB 10/KR
Facial tissues 14/CN 9/GB 6/JP
Hair care 26/CN 15/GB 8/KR,ES
Oral care 23/CN 9/GB 6/ES
CATEGORIES %/COUNTRY (TOP 3)
Wine 15/CN 11/GB 12/AU
Tea 15/CN 6/DE 5/GB
Drinking milk
products
13/KR 12/CN 6/GB
Toilet paper 13/CN 7/US,GB 6/FR
Laundry care 15/CN 10/KR 9/GB
Rice 31/KR 10/JP 7/GB
Chocolate
confectionary
12/CN 6/GB,FR 5/JP
Sugar
confectionary
88/CN 5/GB 3/JP,AU
Biscuits/cookies 11/KR 8/CN 7/ES
Yogurt 13/KR 7/GB 6/CN
Sweet and savory
snacks
8/CN 7/GB 3/KR,ES
Coffee 17/KR 11/CN 5/GB,FR
Spirits 9/AU 6/GB 4/DE
Legend: AU (Australia), CN (China), DE (Germany), GB (Great Britain), ES (Spain), FR (France), JP (Japan), KR (South Korea), US (United States)
CATEGORIES %/COUNTRY (TOP 3)
Ready meals 6/GB 4/JP 5/AU
Juice 14/KR 7/GB 4/CN,FR
Beer 9/AU 5/GB 4/JP
Bottled water 20/KR 4/GB,FR 3/CN,JP
Sports and energy
drinks
7/KR 6/FR 5/GB
Carbonates 11/KR 5/GB 4/FR
Oils and fats 7/FR 5/GB 3/ES
Processed meat
and seafood
6/FR 5/GB 2/CN,ES
Processed fruit
and vegetables
6/GB 5/FR 2/CN,DE
Baked goods 4/GB,FR 3/ES 2/CN,AU
Cheese 4/GB,FR 3/ES 2/CN
Sauces, dressings
and condiments
4/ES 3/JP 1/US,GB

10. PLAYTOWIN
10
CPG companies that commit to a modern
eCommerce strategy will grow faster and
outperform their peers by a significant
margin.
75% CAGR is possible for companies that
advance through three levels of eCommerce
maturity.
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11. MATURITY
LEVEL1
11
MASTER BRILLIANT BASICS
• Optimize search
• Optimize CX
• Optimize content management
• Optimize ad spend
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DESIGN THE PERFECT
“DIGITAL SHELF” WITH THE
RIGHT PRODUCT
DESCRIPTIONS AND IMAGES

12. MATURITY
LEVEL2
12
GEAR UP FOR DIFFERENTIATION
• Strengthen channel partnerships
• Optimize product assortments
• Effectively manage pricing
Copyright © 2018 Accenture All rights reserved.
DON’T OFFER A BETTER PRICE.
OFFER THE BEST PRICE TO
WIN IN THE ONLINE SPACE

13. MATURITY
LEVEL3
13
LEAD THE PACK
• Design an agile supply chain
• Re-imagine packaging for the online world
• Develop products for the digital consumer
Copyright © 2018 Accenture All rights reserved.
DIFFERENTIATE ONLINE
OFFERINGS WITH NICHE,
EXCLUSIVE OR
PERSONALIZED PRODUCTS

14. YOURMOVE
TOMODERN
STARTSNOW
14
Building eCommerce capabilities is a critical
step to becoming a modern CPG company.
Those that invest wisely in core areas of
eCommerce today will be the ones to:
• Deliver endless aisles
• Capture endless insights
• Pursue endless opportunities for growth in
the years ahead
Copyright © 2018 Accenture All rights reserved.

15. 15
VISIT:
ACCENTURE.COM/CPGECOMMERCE
LEARNHOWTOMAKETHE
“MOVETOMODERN”
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@AccentureCPG Accenture Consumer Goods