P&G To Set $4B eCommerce Goal

P&G has never surpassed 1% of sales via the online channel per this Ad Age article.

They are now looking for sales via Amazon as well as Walmart.com and their own sites.

“Some categories see as much as 30% to 50% of their business in e-commerce,” Mr. Watson said. “Our forecasts don’t suggest consumer products will ever work like that. But it’s not out of the realm of possibility e-commerce will be more than 1% of our sales. Getting north of 10% would be an aggressive goal, but somewhere in between that would be, we think, within the realm of possibility.”

Per the article, it looks like there is only upside in the category, just by moved a small portion to the online channel.

“Forrester pegged total online retail sales at $156.1 billion last year and projected growth to $229.1 billion, or 8% of total retail sales, by 2013. But fewer than a third of online consumers purchase package goods online today.”

It seems rather a return to a strategy used earlier this decade, thought the strategy seems to now be capturing the customer while they are being messaged via online media, instead of waiting until the enter an offline outlet to purchase their CPG product. As mentioned in the article, P&G is using the direct sales model more of a measurement device for their online media spend.

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