E-commerce for consumer packaged has finally arrived. But how can companies become digital commerce leaders?
Although many CPG executives understand that a shift to e-commerce is happening, many underestimate the size of the opportunity and the digital innovation needed to get there.
Consumers, who are enjoying the convenience and value of digital services in other aspects of their lives, expect these benefits in grocery. Retailers and suppliers need to understand the shifting retail landscape and build digital commerce capabilities that meet these consumer expectations. Companies not prepared to meet to the new digital consumer risk stagnation, loss of share and even shrinking sales.
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How Can CPG Companies Become Digital Leaders?
1. Presented by Jeff Hunt, CEO, Snap36
February 18 2015
360° & 3D
Product
Photography
2. An online marketing veteran, Jeff Hunt spent ten years at Adobe-Scene7
energizing his passion in rich media, merchandising and user experience.
After opening Scene7 offices in Chicago, London, Paris and Hamburg, Jeff
listened to his clients and recognized an unmet demand for spin
photography. Inspired to offer a more visually interactive online
experience, Jeff founded Snap36 to deliver turnkey photography services
and provide the equipment, technology and expertise needed to
implement 360° & 3D spin photography.
JEFF HUNTCEO & FOUNDER OF SNAP36
www.snap36.com
3. WHY THE MARKET WAS WRONGCOMPLICATED AND COSTLY
Expensive
High cost compared to traditional static photography
Technology
Complicated, manual process
Relied on Flash based solutions
High Barrier to Entry
Market was dominated by a few companies
www.snap36.com
4. WHY THE MARKET IS RIGHTNEW TECHNOLOGIES
ü Robotic Equipment
ü Workflow Software
www.snap36.com
New technologies allow for mass
production of imagery
Software integrates with robotic equipment to
automate image capturing and studio management
Industrial strength robotic equipment can be
configured to shoot any product size
CLICK TO VIEW VIDEO
5. WHY THE MARKET IS RIGHTBETTER IAMGES BETTER EXPERIENCE
www.snap36.com
CONSISTENCY
MORE PRODUCTS IN LESS TIME
Laser system and
intelligent equipment
provides consistent
product positioning and
angle accuracy
Automated process allows
you to shoot 24 product
images in 90 seconds.
REDUCED RETURN RATE
Providing more visual
information builds
purchase confidence and
increases conversions
30% to 40%
Reduce return rates by
25% to 45% and call
center costs by up to 50%
INCREASE CONVERSION RATE
6. WHY THE MARKET IS RIGHTMATURING MEDIA AND FLEXIBLE DELIVERY OPTIONS
www.snap36.com
ü 360° Product Photography
The product rotates on a single row, while the camera takes
pictures at specified degree intervals. Typical 360°
photography is shot at every 15° resulting in 24 images.
ü 3D Product Photography
The product is shot in 360° on multiple rows. Two row 3D
photography results in 48 images. Three row 3D photography
results in 72 images.
ü 3D Modeling/CGI
Digital framework is created and graphic layers are
applied or created to “build” a virtual object.
7. WHY THE MARKET IS RIGHTTHE PROCESS
www.snap36.com
Products
received and
sorted
Assembled by
case, inner
pack, product
Weights and
measures
Images
captured
using robotic
equipment
and software
Images
exported and
named in a
viewer ready
format
Images
uploaded to
DAM
CLICK TO VIEW PRODUCT SPIN EXAMPLES
9. WHY THE MARKET IS RIGHTINDUSTRY MOMENTUM
www.snap36.com
ü GTIN tracking enables better discovery
and purchasing on the web
ü Commercial DAMS supporting GDSN
interface
10. WHY THE MARKET IS RIGHTTHE FLEX SHOPPER
www.snap36.com
Comprehensive Information
Customer Experience
Technology Adoption
Shopping Convenience
55% of consumers prefer to
buy online
43% of mobile users don’t
purchase because they can’t get
a clear enough image
1/3 of consumers are not satisfied
with the amount of product or
visual information
94% agree that B2B customer
experiences should mirror at-home
experiences
11. 75%
27%
41%
51%
50%
96%
88%
55%
91%
67%
58%
20%
23%
23%
26%
23%
4%
9%
28%
8%
21%
28%
5%
50%
36%
23%
27%
3%
17%
12%
13%
Ability to customize an item (style, fabric, colors, monogramming)
Links to social sites to share items for feedback
Product videos contributed by other users/shoppers
Product images contributed by other users/shoppers
Live chat to talk with customer support about products
Images of all available colors and patterns of an item
Customer ratings, comments and reviews
Video demonstrating feature highlights with product experts
Ability to turn products around in a full 360-spin and zoom on any perspective
Download images in higher resolution
Predetermined zoom areas on images with overlaid information
Most Useful (4-5) Neutral (3) Least Useful (1-2)
*Adobe ‘What Shoppers Want’ Survey
DIGITALLY DRIVEN DEMANDCONSUMERS EXPECT TO BE CONNECTED, EMPOWERED, INFORMED
www.snap36.com
12. What visual features will increase your likelihood to make a purchase on your mobile device?
*Adobe Mobile Consumer Survey
43% 42%
39%
33% 32%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Product side-by-side
comparisons
360° spin of a
product
Interactive zoom or
pan of a product
Video Multi-media
www.snap36.com
DIGITALLY DRIVEN DEMANDCONSUMERS EXPECT TO BE CONNECTED, EMPOWERED, INFORMED
13. CASE STUDY
Major industrial supplier measured how enhanced
content impacted sales
3.8%
VIDEO
2.4%
ALTERNATE PRODUCT VIEWS
1.7%
TECHNICAL DOCUMENTS
4.2%
ADDITIONAL PRODUCT COPY
6%
360° & 3D PRODUCT PHOTOGRAPHY
www.snap36.com
14. CASE STUDY
www.snap36.com
3X
MORE SALES
“360° & 3D spins help us convert engaged customers by
giving them a comprehensive visual understanding of
the product. It helps them buy more confidently. Once
customers are engaged in a spin image, they are 3x more
likely to convert.”
Rob Cassidy
President & COO, eBags
15. www.snap36.com
INDUSTRY ADOPTIONSHIFTS IN THE LANDSCAPE
GS1 IMAGE STANDARDS
• Mentioned under Interactive Digital Assets
AUTOCARE COMPLIANT
• Mentioned in PIES as receiving attention in the
marketplace
• Images can be transmitted to meet PIES
GOOGLE SHOPPING
• 360° Product Images Account for manufacturers
• 360° images displayed on Google Shopping and
Google Product Listing Ads
16. LOOKING AHEADPROPOSED CHANGES TO NUTRITION FACTS LABEL
• Changes based on nutrition science
• Updated serving size requirements and labeling for certain
packages
• Refreshed design
Despite the cut-and-dried nature of the nutritional label changes—which, unlike
front-of-label packaging, marketers have no control. These changes will affect
food marketing, and companies need to consider how to respond.
NO ASPECT OF THE FOOD INDUSTRY WILL BE UNAFFECTED BY THESE CHANGES
MARKETING IS NO EXPECTION
www.snap36.com
The U.S. Food and Drug Administration announced that January 1,
2018 will be the uniform compliance date for food labeling
regulations that are issued in calendar years 2015 and 2016.
17. LOOKING AHEAD1-5-10 MARKET
1% 5% 10%
The CPG industry is approaching a tipping point; companies need to plan for a “1-5-10” market in the U.S. over the next five years.
Digital’s current 1% penetration of the U.S. CPG market will likely expand to 5% by 2018 and could accelerate to as much as 10%
soon thereafter.
The experience of other sectors demonstrates that early movers often establish tough-to-trump positions and advantages. This is
both a formidable challenge and an enormous opportunity for CPG manufacturers.
Digital penetration of 5% represents nearly ½ of total CPG growth over the next 5 years, meaning that companies without an
effective digital capability risk stagnation, loss of share, and even shrinking sales.
www.snap36.com
2015 2019
18. LOOKING AHEADEVOLVING CUSTOMER JOURNEY
www.snap36.com
Website Visit
Facebook Like
Open Email Offer
Mobile Site Visit
Store Visit
Website Visit
Digital shopping has evolved very quickly into a highly complex ecosystem that has
fundamentally reshaped—and continues to redefine—the way consumers engage with brands
and purchase products.
Online consumers are heavy users of supplier- and retailer-sponsored websites, and they
increasingly expect manufacturers to have great content online.
Digital content is especially apparent and critical in the search and discovery phase of the
customer journey.
19. www.snap36.com
THE BEST WAY TO PREDICT THE FUTURE IS TO CREATE IT
Digital innovation has created entirely new patterns of expectation.
Consumers, who are enjoying the convenience and value of digital
services in other aspects of their lives, expect these benefits in
grocery as well.
Retailers and suppliers are under acute pressure to adapt. CPG
companies need to understand and shape the shifting retail
landscape, because ultimately they will need to participate in new
distribution models.
FROM NOW ON, TECHNOLOGY ENABLED INNOVATIONS WILL DRIVE MUCH OF THE GROWTH IN CPG
Dual motor will reposition in an event of a misfire. Home Depot increased product accuracy rate to over 99%
Capture 10x to 20x more images for the same price of static images
Brand consistent, quality images build purchase confidence. And that’s the difference between browsing and buying
Spin photography increases purchase confidence and allows your consumers to know what they’re buying the first time. This is essential in the B2B world where the wrong product can cost thousands and potentially your career.
Products are shipped off site or arrive at internal studio. Products are organized and prepped for capture
Assembled by case, inner pack, product
Weights and measures
Images are captured with our automated equipment and software
Images are exported and named to meet viewer, industry and brand needs
Images are uploaded based on hosting location. This may be an internal server or a third-party data asset management software
Images are then deployed on your website and viewable as 360° & 3D product spins
Planogram images are at 0 degrees. They include front, back, top, bottom and both sides.
Marketing images all have a 20 degree plunge. They are the front (0 degrees) and two 15 degree side angles.
The 360 degree images consist of all images in a row shot at a 0 degree plunge
The 3D images consist of all images in two shots shot at both 0 degree plunge and 20 degree plunge
360 degree product images are mentioned in the GS1 standards
Autocare recognizes 360 degree product imagery. Images can be transmitted to meet PIES standards.
Google shopping allows manufacturers to create 360 degree image accounts. Spins are displayed on Google Shopping and Google Product List Ads
The CPG industry is approaching a tipping point; companies need to plan for a “1-5-10” market in the U.S. over the next five years. Digital’s current 1% penetration of the U.S. CPG market will likely expand to 5% by 2018 and could accelerate to as much as 10% soon thereafter.
Product and location will see different penetration rates. Digital already grabbed more than a 10% share in diapers.
The experience of other sectors demonstrates that early movers often establish tough-to-trump positions and advantages. This is both a formidable challenge and an enormous opportunity for CPG manufacturers.
Digital penetration of 5% represents nearly ½ of total CPG growth over the next 5 years, meaning that companies without an effective digital capability risk stagnation, loss of share, and even shrinking sales.
5% is penetration is close to the ‘tipping point’ in other industries where digital sales quickly escalated from 5% to 20%
The consumer purchasing pathway is more fragmented than ever before.
Online consumers are already using countless platforms, websites, and mobile apps to improve their lives. These include search engines, social-media sites, and mobile “gatekeepers,” as well as “curated commerce,” “daily deal,” and “superutility” sites and apps.
It’s illogical to think that consumers will continue to shop for the same goods in the same ways as they always have, visiting the grocery store, drugstore, or mass-market retailer multiple times each week.
Other sectors tell cautionary tales: ten years ago, people still bought CDs in record stores, rented videos and DVDs in video stores, read print newspapers and magazines, and purchased airline tickets and hotel rooms from travel agents. When the music, video, print media, and travel industries reached their digital tipping points, they changed fast.
The digital experience has already upended every stage of the traditional purchasing pathway: discover, search, locate, buy, and postpurchase. The new pathway is much more fragmented and dynamic, thanks to the ability of consumers to share their experiences and knowledge.
Consumers are embracing technologies, devices and services that make everyday tasks such as shopping, cooking and even commuting quicker, easier and more fun, and more efficient. They order online, they get suggestions and reminders on their smartphones, and they marry disparate services such as menu planning, ordering and delivering in ways that even the service provider had not anticipated.
Millions of people today, in cities from Austin to Boston and from San Francisco to New York, live an updated version of home delivery from such e-commerce services as AmazonFresh and Google Shopping Express.
Not so long ago consumers prepared a menu of dinners for the week, checked recipes in a cookbook, wrote out a list, and went shopping. Today, more and more people receive menu suggestions daily on their computers, tablets, or phones, order the ingredients online, and have them delivered or pick them up, already packed, on their way home from work. Some seek personalized menu suggestions from companies such as GoJee and Blue Apron, which use their food expertise and big-data analytics to shape taste preferences.
Technological advancements in retail and other sectors have raised consumer expectations by demonstrating new ways that companies can deliver convenience, choice and value.
Those already succeeding understand that consumers interact with products and brands in a completely different way and have developed an integrated strategy to establish a comprehensive digital presence.