This story requires our BI Prime membership. To read the full article,Speaking at Groceryshop, Julie Bowerman, Kellogg Co.'s chief global digital consumer and customer experience officer, said traditional retailers and CPG brands lag on e-commerce due to their size, scale and legacy processes and cultures.
The approach is already yielding results, with Kellogg's brands getting strong ratings, acing search rankings and seeing double digit digital growth, she said.LAS VEGAS — Traditional retailers and large CPG brands have been slow to adapt to e-commerce. Julie Bowerman, chief global digital consumer and customer experience officer at Kellogg Co., explained why this happens — and what they can do about it.
"The categories that we participate in are modest growth categories, so it's hard to have scale...to justify investment," Bowerman said."So I call it 'checking the digital box because I did this, and I've worked for companies that did this,' where we just took brick-and-mortar and put it online. We would only invest in e-commerce based on scale... and that doesn't work. You have to invest ahead of scale.
"We don't think about this [e-commerce] as just sales; we don't think about it just as brand marketing," she said."The beauty of e-commerce is that it's a platform that drives both transaction and builds brands."