Investing in e-commerce is no longer an option to the consumer goods industry.

E-commerce already moves near 4.9 trillion dollars a year only in the United States! In some European countries, such as England, this market already represents 14% of total retail sales. So, in case you haven’t noticed, e-commerce is revolutionizing the industry more than anything else. By 2020, it was estimated that 14.6% of global retail sales would already be made through digital platforms.

When we talk about high turnover consumer goods products, the transformation is evident. The forecast is that this market’s revenue will reach $150 billion dollars by 2025. These impressive results show that people’s purchasing behavior is shifting from physical stores to digital services. Therefore, e-commerce is becoming an increasingly significant part of the total growth of food and beverage companies.

Therefore, structuring the online sales operation is no longer an option. Today, investing in e-commerce has become critical for consumer goods companies to keep their leadership and, at least, their market share.

Why are big brands investing so much in e-commerce?It´s normal asking questions about investing in ecommerce, as this market represents little in total sales and is much lower than physical stores. So why are big companies like Nestlé, P&G and Unilever investing heavily in this area?

Check out some reasons:

Hand Invest

1. Change in people’s consumption habits.

Mobile devices such as smartphones andtablets have changed consumption habits in virtually all types of purchases. Smartphones and tablets are making consumers’ lives much more practical. They deliver virtually any necessary information about the products, anywhere and instantly over the internet.

These devices are already present in almost all Brazilian population. Currently, the average is one smartphone per inhabitant in the country. This justifies why more than 64% of all global retail transactions are already influenced by digital content, according to Deloitte.

Therefore, the major consumer goods brands have already noticed this change in consumer´s behavior. So they are really investing in e-commerce and are seeking to offer better online shopping experiences – whether on desktop or mobile.

Hand Software

2. Competitors are in e-commerce.

Invest in your market space before it is too late. In early 2017, Berkshire Hathaway, one of the world’s biggest holders, controlled by mega-investor Warren Buffett, sold $2 billion of his Walmart shares. When Buffett decides to withdraw from a business that is never a good sign. In this case, since the end of 2014, Walmart shares have fallen 21%. In the meantime, Amazon’s has grown 119%.

According to former Walmart CEO Mike Duke, his biggest regret as Walmart’s chief executive was not having invested more in e-commerce to be more competitive against Amazon. “I wish we had moved faster. We’ve proven ourselves to be successful in many areas, and I simply wonder why we didn’t move more quickly. This is especially true for e-commerce”. This testimonial was given in 2012. Since then, Walmart has realized that e-commerce is no longer a trend, but a reality.

In 2015, the group invested billions of dollars in e-commerce operation, increasing its sales to $13 billion. However, in the same period, Amazon billed $107 billion. With this loss of market share, Buffett chose to sell his shares because he knows how difficult and expensive it will be for Walmart to win its retail space against Amazon back.

The same happened in Mexico, where Walmart is still chasing, and a lot, the sales leader in the country: MercadoLibre. Therefore, if you do not invest in e-commerce soon, you will end up being swallowed up by your competitors.

Platform - E-Commerce and Marketplace.

Even with the exponential growth of digital commerce on internet, security problems continue causing harm to many users of this business model. Processes to avoid these kind of situations most often cannot keep up with the growth of the digital market. However, CoinShopp’s E-commerce Platform and Marketplace was developed using Blockchain technology, where frauds performed in online sales such as cloning of cards, false bills and tampering with products and infoproducts, are computationally improbable due to the transparency and security of the Blockchain infrastructure.