When asked about their online business performance, consumer packaged goods (CPG) companies would say it ‘is posting solid double-digit growth’. However, reality shows a different picture: Bain & Company’s research on global top 10 brands’ online penetration indicates 7 out of 10 hover below the average.

Success in the brick and mortar business does not guarantee the same result in the online counterpart.

The two markets are two different animals. The capability and know-how built in the physical business are not transferrable to online. Most CPG brands are savvy in offline sales. They know good locations and when and how promotions work. On the other hand, they often find themselves lacking a clear sales and marketing strategy for the online marketplace where there are neither physical shelves nor in-store promotion events. CPG companies should be agile to develop new ways of working, establish new partnership and capabilities. Four principles below can be helpful:

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