The internet of things (IoT) is already beginning to change how consumers shop and how consumer and packaged goods (CPG) companies do business. The industry is using the IoT to streamline manufacturing processes and supply chain management as it seeks new revenue opportunities. Brands are also exploring ways to build upon these efforts and use the IoT to deliver more personalized customer experiences.
Whether it’s monitoring the supply chain, tracking how products are used or gaining more insight into shopper preferences, the IoT is ushering in an era in which “smart” things can seamlessly collect, share and analyze real-time data. In turn, this data can be used to personalize consumer experiences and deliver proactive services, as explored in a new eMarketer report, “The Internet of CPG Things: What Consumer Products Marketers Need to Know Now.”
Studies that assess the market size of the IoT in the consumer products industry generally agree that budgets remain comparatively low. CPG brands have made modest investments in manufacturing, supply chain and inventory management operations, but the industry lags behind most others when it comes to IoT spending as a percentage of revenues. An April 2015 survey of global executives across a variety of industries conducted by Tata Consultancy Services (TCS) found that CPG respondents anticipated that average IoT per-company spending for their sector would grow modestly between 2015 and 2018, from $41.2 million to $67.6 million.