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•Guest Series Part 4: Challenges Manufacturers Face In An E-Commerce Environment

By Richard Angelo, Director Product Marketing, Jesta I.S. Inc.

Traditionally, consumer product manufacturers have marketed their products through the traditional retail customer channel or in many cases through company owned brick and mortar stores. Companies with strong brand images have been able to successfully market in both spaces by incorporating through line exclusivity offerings or protective pricing strategies. Traditional retailers have historically received this with mixed reactions running from resigned acceptance to outright anger.

Considering today's tougher economic conditions, manufacturers see their traditional retail client incorporate more profitable private label goods that are in many cases being sourced by the retailers directly, cutting the consumer products manufacturer out of the picture. Private-label goods accounted for 22% of consumer-packaged products sold in the U.S. in 2009, up from 20% the year before, according to The Nielsen Co. Some manufacturers today are choosing e-Commerce to sell directly to the consumer in order to increase market share and add profitability to their lines. Another impetus to sell via the Web came with the recession, which prompted consumers to do more shopping online, where comparison bargain-hunting is easier. Online sales are expected to reach 12% of the total retail market by 2012, up from 6%, or $211.7 billion, now, according to Forrester Research.

Click Here To Download:
•Guest Series Part 4: Challenges Manufacturers Face In An E-Commerce Environment