The World’s First Decentralized E-commerce Ecosystem Using blockchain technology, synchronized database and powerful encryption capabilities, along with its ability to generate smart contracts, retailers can gain early-mover advantage to more effectively collaborate and enhance trust across the value chain.
Challenge No. 1: Many Consumers Have Grown Accustomed to Buying Private Labels. More than half of consumers with household income of more than $100,000 said they expect to buy more private-label products over the next six months.
Challenge No. 2: The Consumer Shift Toward Fresh Foods Shows No Sign of Easing. Many packaged foods makers have had to refocus themselves to accommodate consumers' continued shift toward foods that are perceived as fresher and healthier.
Challenge No. 3: Amazon Is Putting On the Pressure. Amazon's disruption of the the retail sector is only the start. The ecommerce giant is now is in the process of disrupting multiple sectors by selling its own lines of furniture, clothing and, yes, packaged goods. CPG items accounted for 41% of Amazon's private label sales in the first half of 2017.
Challenge No. 4: Product Cycles Are Speeding Up. 180,000 products globally were redesigned in 2016 to meet consumer demands for healthier diets and lifestyles. That’s more than double the 84,000 reformulations in 2015, and vastly more than the 22,500 in 2014.
Challenge No. 5: Digital Channels Have Made It Easier for Upstarts to Gain Share. The 16 largest food and beverage CPG manufacturers, with combined sales of $233 billion, saw their collective share of the US brick-and-mortar market decline to 31%.