Understanding Alternative Channels in CPG Sales: Explore the concept of alt channels in the CPG industry

Alternative channels in the consumer packaged goods refer to non-tradition destinations for distributing products to the final consumer. They are defined relative to the primary distribution channels that is composed of traditional retail outlets such as supermarkets and department stores.

Alternative channels have become increasingly popular, and they have afforded CPG brands the avenue to reach their customers in novel ways. Some of alternative channels to consider include: online marketplaces, online marketplaces have become the leading platform in the CPG sector due to the rise of e-commerce, where brands have the opportunity to sell their products directly to the consumers . The marketplaces have enabled the discovery of new brands that previously were not available in traditional stores.

Apart from the marketplaces, the brands may also create their online stores to sell directly to the consumers, enabling them to enjoy a wide market scope with the marketplaces ensuring ease of online payments and logistics .

Specialty stores, this refer to small retail stores that target a specific niche of products catering for the specific need with a good example being an organic store . The stores have a small selection of products where CPG can create a market for its products for customers who have unique preferences.

Convenience stores, these are small retail outlets available in every corner in urban centers with a wide variety of fast-selling products . CPG may sell their products here focusing on impulse buying and customers looking for a quick purchase thus ensuring the sales of their products.

Direct-to-consumer : Brands use the modality of selling directly to consumers without an intermediatory increasing their profit margins. The CPG takes control of all sales details like prices and gather their customer data directly further improving their marketing approaches.