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Next generation route to market capabilities for Consumer Goods Companies

Updated: Nov 27, 2020

The CPG industry has been sitting on the digital transformation fence for long. Limiting its digital focus largely on marketing initiatives, CPG companies continue to overlook the elephant in the room—the high cost to serve traditional RTM in the emerging markets.

The good news is that traditional trade is ready for change. A study by Accenture shows that Mom & Pop stores are already familiar with digital—using smartphones and apps and digital payments for transacting with customers.

The bad news: Digital natives like Amazon and Alibaba know this too and are roping in these tiny stores to join their platforms.

There is an urgent need, therefore, for CPGs to take advantage of traditional trade's openness to technology, now. The window of opportunity could close soon as new disruptive business models change the market’s dynamics.

CPG companies have a window of opportunity—for a new digital technology-based approach to route to market (RTM) that will help them survive, innovate and grow. And even disrupt to lead. Seasoned RTM organizations need to re-invent themselves to leverage the new technologies for growth. While some of their RTM capabilities are market leading, there are gaps in others.

A new approach to traditional trade is needed—one that enables the ecosystem and creates opportunities to collaborate and innovate.

This paper explores what CPG Companies can do to build Next Generation RTM Capabilities to unlock growth.

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