London, United Kingdom - 19 Jun 2017
In a recent B2B technology survey of 455 U.S.-based companies that span nine verticals, ABI Research finds that 54% of active consumer packaged goods (CPG) respondents feel that efficiency and productivity are the main two benefits that drive in-store technology adoptions. This can be interpreted as being directly related to the CPG vertical’s focus on optimized manufacturing, distribution, and sales processes of high-frequency, low-margin and/or non-premium/commodity goods.
“For CPG, the benefits to in-store technology need to have a direct and resounding impact on sales, efficiency, customer satisfaction, and ultimately the overall bottom-line,” says Dominique Bonte, Managing Director and Vice President at ABI Research. “This is in stark contrast with retail approaches, which center more on brand awareness and in-store customer experiences.”
Additional noteworthy findings from the survey include:
- Market Adjacencies: Respondents rate on-demand delivery and production highly, with robotics being the only non-generic, non-connectivity technology receiving a high score.
- Connected Packaging: Only 4% of respondents selected stimulation of customer engagement through tech-integrated connected packaging as the main use of in-store technologies.
- E-commerce and Brick and Mortar: Respondents show mixed messages on the future of brick-and-mortar stores; 36% of respondents think they will be taken over or bypassed by e-commerce.
- Technology Adoption: Despite respondents’ overall high willingness to adopt technology, security, privacy, cultural aspects, and cost are the main adoption barriers; legacy frameworks and regulatory/legal barriers also raise concerns.
- Technology Development: Respondents stake a clear position on the need to outsource cybersecurity.
- Carriers: 36% of respondents see a role for carriers as CPG ecosystem enablers.
“From the survey findings, it is clear that in-store technologies like Bluetooth and Wi-Fi beacons, wireless point-of-sales (POS) terminals, electronic shelf labels, asset and inventory management, and process automation are prime for CPG adoption, but they remain hampered by internal and external inertia,” concludes Bonte. “If and when respondents deploy these technologies, they believe that the ROI for dedicated in-store technology will be fast.”
These findings are from ABI Research’s Industry Survey: Transformative Technology Adoption and Attitudes - CPG report.