DTCs are notoriously effective in courting young shoppers, including millennials and emerging Gen-Z consumers. This is likely because younger shoppers, growing up in the digital age and native to its conventions, gravitate toward convenience and are less tied to the longstanding preferences that legacy brands carefully crafted through decades of advertising. Mobile, which is tied to identity and location and offers quick digital purchasing options, is the platform where these trends are most exaggerated.
Last year, almost half of Amazon’s private-label sales were in consumer-packaged goods. Pre-Amazon, legacy CPGs once would’ve been the beneficiary of that demand. CPGs have struggled to evolve with younger consumer preferences. Here’s what I mean, along with ways AI can help them improve.