The APAC region presents a tantalizing prospect to Consumer Packaged Goods (CPG) businesses worldwide.

APAC will be biggest market for CPG companies accounting for >30 percent of global industry share by 2022. The distribution landscape in APAC bears little resemblance to the familiar environments of western markets. Small "Mom & Pop" retail outlets dominate, with 75 percent CPG sales taking place through these outlets (vs. ~20 percent in North America).

The cost to serve Mom & Pop retail outlets is very high. The cost does not always match-up to the benefit, i.e. the resultant revenues from these outlets.

Edward Stark

Managing Director

CPG businesses need to find a new, more cost-efficient route to market to capture growth potential in this region.

Cost to Serve has always been a barrier to CPG growth. Digital will bring these costs down. Our research reveals that these mom and pop retailers are already digitally proficient in their personal lives and are embracing technology to enhance their day-to-day business dealings.

Digital proficiency in personal life: China 84%; India 60%; Indonesia 50%. Digital readiness, day to day business operations: China 84%, India 64%, Indonesia 20%.

Digital readiness of Mom & Pop retailers based on Accenture Research quantitative & qualitative survey research conducted during May-August 2017.

Digital can enhance traditional trade interaction helping CPG companies achieve their key goals:

  • Bring down cost-to-serve and enhance interaction with traditional trade retailers
  • Liberate field resources’ time and redeploy them to focus on higher-value initiatives
  • Generate valuable customer and consumer data that companies can use to perform analytics and eventually enhance how they reach and serve key consumer segments
  • Create win-win with traditional trade retailers who are keen to be customer relevant and as a result, improve their income
  • CPG companies must act now, else they will lose this window of opportunity. They need to holistically re-invent their Route to Market strategy.

    CPG companies need to amp up the digital strategy to enhance the trade penetration, outlet coverage, and quality of interactions with the retailers.