Given how we have talked about “direct branding” as an application of mobile marketing for CPG marketers, this article on the Digital CPG Blog a couple days ago stood out. Apparently, direct to consumer selling by non-CPG manufacturers is the fastest growing online retail category.
Titled “Mattel Goes Direct to Consumer Online,” the post describes how Mattel, the U.S.’ largest toy manufacturer, is selling its products direct to consumers via a new ecommerce web presence. Although ½ of its revenue derives from just three large retailers, Mattel is able to do this apparently without disrupting traditional sales channel relationships.
The author posits why the CPG industry doesn’t also adopt the approach, given a similar dependency on a small universe of distribution channels. I suggest one reason is that traditional CPG products remain the domain of the in-person shopping experience facilitated by real stores, as opposed to the web.
For that reason, direct customer relationships can be established and developed by CPG marketers today using mobile marketing techniques applied to programs such as loyalty, product trial and couponing. Mapping your marketing strategy to the mobile channel is a good first step.
