COVID Disrupted Consumer Packaged Goods Distribution. Now What?

Traditional distribution channels for consumer packaged goods (CPG) were already shifting before the COVID-19 pandemic. But sticky.io CEO Brian Bogosian told PYMNTS.com the pandemic is only accelerating these changes.  

“The traditional supply chains have been interrupted,” Bogosian said. “Brands are recognizing they need to establish a direct-to-consumer relationship to maintain their positions in consumer homes.” 

Bogosian predicted traditional manufacturers will increasingly bypass retailers to connect directly with consumers. And research shows shoppers are already migrating to online D2C channels. About 55% of surveyed consumers in the past year have used D2C channels to purchase CPG products or nonperishable items used on a regular basis, according to a recent study published by PYMNTS.com and sticky.io. 

“People are becoming a lot more familiar with this whole idea of consuming from their computer or mobile device,” Bogosian said, while noting D2C can be a cost-effective solution to boot.

Read the full PYMNTS.com article here.   

Learn more about how the pandemic is changing consumer buying habits. Download the “D2C And The New Brand Loyalty” study for the latest in-depth insights.