Community Commerce: A New Model for Beverages
Covid-19 painfully exposed gaps in the traditional beverage route-to-market models and the lack of investment in e-commerce. Moreover, the standard beverage e-commerce playbook outsources the strategic space to retail partners and start-ups, with beverage companies losing near-term customer access and the long-term digital brand-building opportunity.
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Direct-to-consumer (DTC) models offer an opportunity to recover lost strategic space, but have a high initial cost and a long gestation period. Under the circumstances, a digital DTC model – community commerce – presents an exciting solution. Community commerce offers scalability and lower customer acquisition cost, and it crucially allows companies to transform their existing competitive moats into next-generation competitive advantages.
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Sudip SinhaSenior Analyst - Beverages Read more