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Kantar and Profitero Survey Reveals Nearly Three Quarters of Consumer Brands Believe They are Merely Keeping Pace or Catching up in eCommerce - Odessa American: Business

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Kantar and Profitero Survey Reveals Nearly Three Quarters of Consumer Brands Believe They are Merely Keeping Pace or Catching up in eCommerce

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Posted: Monday, March 23, 2020 7:01 am

BOSTON--(BUSINESS WIRE)--Mar 23, 2020--

A new study from Kantar, the world’s leading data and consulting company and eCommerce performance analytics company Profitero, reveals that just 17% of brand leaders believe their organizations are ahead of the curve when it comes to organizing for eCommerce, compared with the vast majority (71%) who report they are merely keeping pace or catching up.

For the fourth consecutive year, Kantar and Profitero surveyed nearly 200 brand leaders at consumer products companies globally to understand trends in how companies are organizing and strategizing for eCommerce.

The survey findings reveal that many manufacturers are still unprepared when it comes to readying their business for digital transformation, with most organizations lacking a true strategy for integrating eCommerce into the overall business structure, and many continuing to operate in ‘channel silos’. For example, 40% of respondents report that their organizations lack concrete goals or measurable objectives for eCommerce. Only 11% say that each functional team in their organization has specific eCommerce goals built into strategic growth plans and KPIs.

The challenges of managing profitability and supply chain are also seen to weigh heavily on manufacturers: 50% of brand respondents ranked pricing and profitability as their biggest eCommerce challenge, while 40% of respondents say that adapting existing supply chain to fit eCommerce is their next biggest challenge -- a concern that is only being magnified by the current COVID-19 pandemic crisis.

“Our 2019 survey shows that most manufacturers have fully embraced eCommerce as a strategic necessity, but still have a long way to go when it comes to integrating it into every facet of the business,” said Keith Anderson, SVP Strategy and Insight at Profitero. “It’s evident that CEOs need to be investing more to modernize their organizations for digital transformation and most importantly, doing more to include eCommerce in the job descriptions of everyone in the company.”

“While most organizations continue to prioritize eCommerce and employ solid strategies to build their businesses, there are several key areas that they can better embrace to reach the next level of growth. The key question now is what does “advanced eCommerce” look like, and what will it take to achieve this,” said Rachel Dalton, Director of eCommerce and Omnichnannel Insights at Kantar.

Other key findings:

  • Most manufacturers are trying to force fit offline strategies into the online world, which is only making channel conflict and profitability issues worse. One quarter of brand respondents (25%) report their companies lack a dedicated eCommerce assortment strategy, while 38% report they are simply adapting their offline assortment for eCommerce. 32% report that they have yet to develop an eCommerce specific pricing strategy.
  • Organizations are struggling to do little more than tackle the basics when it comes to content. Brands have invested more in product content than any other area of eCommerce but still struggle to achieve quality over quantity. 60% of companies only have basic content and/or basic + enhanced for top SKUs; only 15% are optimizing content to drive sales lift.
  • The true promise of using data and analytics to drive sales growth remains elusive. 61% of brand respondents are only accessing sales and share data for their retailer websites and are not investing in digital shelf or shopper panel data to understand how to optimize opportunities. Just 8% are applying predictive analytics to their eCommerce business.

Kantar and Profitero will be presenting the findings of The 2020 eCommerce Organizational Benchmarking Report live on March 23 at 9am ET as part of Profitero's CommerceLive virtual summit.

Methodology Summary

Kantar and Profitero conducted an online survey of brand leaders working at manufacturing companies globally to determine their top organizational priorities, challenges, hiring plans and more as it relates to eCommerce. Fielded from September to December 2019, responses were collected from a total of 196 respondents in 2019.

About Kantar

Kantar is a global specialist growth consultancy. With over 1,000 analysts, thought leaders, software developers and expert consultants, we help our clients develop and execute brand, marketing, retail, sales and shopper strategies to deliver growth. We track 1,200 retailers globally, have purchase data on over 200 million shoppers, and forecast social, cultural and consumer trends across the world.

About Profitero

Profitero is the eCommerce performance analytics platform of choice for 4,000 brands around the world, including Adidas, Abbott Laboratories, General Mills, L’Oreal and Molson Coors. With Profitero, brands can measure their digital shelf performance across 8,000+ retailer sites and mobile apps in 50 countries, gaining actionable insights to improve product content, search placement, ratings & reviews, availability, assortment and pricing. Profitero also allows brands to measure their Amazon sales & share performance, and is the only solution that can correlate Amazon sales & share performance with changes across the digital shelf.

View source version on businesswire.com:https://www.businesswire.com/news/home/20200323005291/en/

CONTACT: Michael Wood

PAN Communications

617-502-4300

profitero@pancomm.com

Bill Daddi

Daddi Brand Communications

646-370-1341

917-620-3717

Bill@DaddiBrand.com

KEYWORD: MASSACHUSETTS UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: INTERNET ONLINE RETAIL RETAIL MOBILE/WIRELESS TECHNOLOGY

SOURCE: Profitero

Copyright Business Wire 2020.

PUB: 03/23/2020 08:00 AM/DISC: 03/23/2020 08:01 AM

http://www.businesswire.com/news/home/20200323005291/en

© 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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