3 Ways DTC Brands Impact Legacy CPG Playbooks

Direct-to-consumer (DTC) brands have forced legacy CPG brands into a major strategy shift. The rumblings of the digital transformation signaled change was coming, and the rise of DTC brands has led CPGs to rethink consumer engagement and the marketing tactics necessary to achieve that goal. And, in today’s digital-first marketplace, CPG margins are tightening because of the competition from DTCs as well as Amazon’s white-label product lines.

The result of these challenges sees the CPG playbook evolving to meet the digital-first ecosystem through tactics including investing in acquisitions, moving advertising budgets into digital, and including emerging marketing channels such as experiential marketing to create brand awareness and make direct consumer connections.