Commentary

Why Nestle, Unilever And Mondelez Are Going Direct -- And Why Supermarkets Need To Be Afraid

by Sean Hargrave , Staff Writer, February 22, 2017

I was having a very interesting talk the other day with a marketing director of a very-well known FMCG when he outlined one of the biggest problems that his brand managers are facing. They are tasked with growth, yet inflation is low and so consumers are very reluctant to pay …

beer, ecommerce, food, london, mcommerce, supermarket, uk

1 comment about "Why Nestle, Unilever And Mondelez Are Going Direct -- And Why Supermarkets Need To Be Afraid".

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Joshua Rex from AP, February 22, 2017 at 5:34 p.m.
Not so sure the subscription model for FMCG will work as they hope it will. Unilever paid way over the odds for DSG - who actually spend more dollars on TV ads than Gillette! So much for the much herladed online strategy. Nespresso is another example where by a significant % of the user base, buy other brand capsules because of the convenience of picking them up during the weekly shop. A much better way for brands to shave costs is to work on eliminating media waste age, which is massive and if you are Unilever et al - the savings are in the billions.
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