Digitally Native Brands: The Next Frontier of CPG Disruption

Delivery

This report comes in PPT.

Key findings

New online storefront gives rise to Digitally Native Brands

As new online storefronts emerge as new places of product discovery, engagement and new ways of serving the customers, this is giving birth to a new generation of brands. Digitally Native Brands (DNBs) leverage digital platforms as their launch pads and prioritise direct-to-consumer channels, real-time customer engagement and hyper-personalised experiences.

Digitally Native Brands capitalise early on emerging trends to capture niche segments

With agility and rapid innovation, Digitally Native Brands outperform legacy players in responding to emerging consumer and industry shifts, notably demand for sustainability, heightened digital engagement and generational shifts with distinctive product attributes such as clean labels, leveraging social media and developing unique brand identities that appeal to niche consumer segments.

Authentic storytelling is a critical success factor in a crowded space

As more brands (digitally native and non-digital natives) embrace new ways of consumer engagement leveraging new platforms and tools, authentic storytelling is becoming critical for brands to win in the digital space.

Brands can establish category leadership with digital-first strategies

When done right, brands have been able to establish category leadership solely based on digital- first and e-commerce sales. Success stories feature the likes of MyProtein, MaryRuth’s, Harry’s and Adopt a Cow, which have challenged incumbents in their categories. 

DNBs offer legacy players avenues for strategic growth

Legacy FMCG players are on the hunt for successful brands for strategic investments. Legacy players can capture emerging consumer segments, unlock whitespace in high-growth categories, accelerate innovation cycles and strengthen brand relevance as consumer trends evolve.