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  • Posted by: oceanx
  • 23/08/2017

RETAIL DIVE GUEST POST: SHOULD CPGS ANSWER AMAZON’S CALL AND GO DIRECT TO THE CONSUMER?

This article was written by OceanX CEO and Founder Georg Richter and first published on retaildive.com on 8/23/17.  Below is a snippet from the original post.

CPGs are at a crossroads, but as brands such as Nike and Adidas launch on Amazon, the decision shouldn’t be made lightly, writes Georg Richter of OceanX.

This spring, Amazon invited executives from some of the world’s largest consumer packaged goods, or CPG, companies to a three-day meeting in Seattle to explore the changing nature of consumer purchasing behavior. While the results and any firsthand reports from the meeting itself are hazy, the point Amazon intended to drive home was clear in its invitation: CPG companies should be selling directly to consumers, and they should do it with Amazon.

Admittedly, the perspective seems a bit counterintuitive on the surface, considering Amazon is a retailer doing business in the space between manufacturers and consumers and is a marketplace for retailers to list their products for sale. It’s likely part of the company’s attempt to shift attention away from brick-and-mortar competitors such as Walmart and toward its own online retail platform.

Read the full article here.

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