The consumer packaged goods (CPG) industry is undergoing a major transition as next generation of customers are becoming major drivers of new digital experiences through omnichannel retailing, eCommerce and mobile platforms. Based on increasing demand, CPG companies have to create new products leveraging the next generation of digital technologies to deliver hyper-personalized customer experiences. The key to creating a digitally transformed CPG company is to build upon new business strategies to define and execute new construct of capabilities. This allows CPG companies to powerfully engage with customers, integrate digital at the core of their business and ideate new business models including new services and products.
Innovation in CPG industry
With trillions in potential profit as stake, CPG companies are constantly leveraging new digital strategies to transform the core of their business processes. CPG manufacturers are rapidly adapting game-changing digital technologies such as Mobile-first, AI-first, Internet of Things, Cloud-migration, Augmented and Virtual Reality, Robotics, and so on to operate at faster speed and meet new customer expectations. Today 34% of customers are already using AR while shopping and 47% of them use it both in a store and online shopping.
Why augmented reality is the next big disruption in the CPG industry
- By 2020,100 million consumers will shop in augmented realities.
- Across the globe, total spending on AR is expected to increase from $11.4 billion in 2017 to $215 billion in 2021.
- The economic impact of VR/AR is forecast to amount to 29.5 billion U.S. dollars in 2020.
Leveraging augmented reality enables brands to deliver memorable and immersive experiences to drive commerce. AR helps CPG companies to
- Strengthen brand loyalty - Show unique features of your products to increase brand transparency and accelerate decision making in the buying process.
- Drive consumer engagement - Engage your customers with interactive games or 3D altered environments.
- Incentivize purchase - Geo-Location and show promotions and implement coupons in-store to impact consumers’ purchasing decisions.
- Create wow moments - Add video or audio to wow your customers and unlock word-of-mouth effects to increase your fans base both in social networks and in real life.
- Acquire customers - Attract more customers to your online or brick-and-mortar stores by delivering compelling and memorable customer experiences such as virtual try.
- Measure data - Collect 100% measurable data for each and every customer interaction between user and connected devices to ensure you are achieving goals.
Use cases of AR in the CPG industry
Consumers are the epicentre of the retail and consumer goods industry where digital is deeply embedded into their daily routines. Consumers today expect product information at their fingertips and AR can enhance how product information is delivered for CPG companies. Augmented reality offers an enormous untapped potential for brands to revolutionize their packaging and the way they connect and engage with consumers in today’s digital world. Let us explore how various CPG companies are leveraging the power of augmented reality to deliver next generation of hyper-personalized customer experiences: