In the consumer packaged goods (CPG) sector, direct-to-consumer (D2C) commerce is evolving from a transactional channel into a strategic lever for brand loyalty building, consumer engagement and data collection.
Take Mondelēz, for example. While selling a sleeve of Oreos online may not be profitable, their Oreo ID initiative allows customers to customize Oreos with personal messages or images, creating a unique brand experience that fosters loyalty and generates data about consumer preferences.
But the road to successful D2C commerce is lined with challenges. Many CPG companies have historically underfunded and underdeveloped their e-commerce efforts, lacking the necessary skills and organizational focus to thrive in this space. Their commercial strategies have been heavily centered on traditional sales and brand marketing, often overlooking the potential of digital channels.
Consumers today expect seamless, personalized experiences across all platforms. They want price and product parity, which requires a robust data ecosystem — something many legacy CPG systems struggle to provide. This disconnect can hinder the effectiveness of their commerce strategies.
With platforms like EY Transformational Commerce powered by Adobe businesses can modernize incrementally, enhance personalization and stay competitive in a rapidly shifting landscape. Composable commerce enables flexible, scalable digital experiences that address legacy challenges and evolving market demands.
Why direct-to-consumer is more than a sales channel
Unlike many other industries, the CPG sector often relies on retailers and marketplaces —think giants like Amazon, Walmart and Target — for volume sales and market share.
But CPG companies are recognizing the potential of D2C commerce, not just as a sales channel, but as a powerful tool for brand building and data collection. D2C offers a distinct opportunity to create personalized experiences and gather insights.
Legacy systems, limited digital capabilities and a focus on traditional sales channels often hinder progress. Some beauty brands have scaled back D2C due to high costs and low differentiation, while other health brands that lend themselves more readily to replenishment models have found success by aligning D2C with privacy and subscription needs.
This shift is increasingly supported by composable commerce, a modular approach that emphasizes flexibility, modularity and adaptability. Composable commerce allows businesses to tailor experiences, respond quickly to market changes and evolve their commerce capabilities without the disruption of a full re-platform.