Consumer Packaged Goods are ripe for disruption

The modern day CPG company

Nicole Quinn
Jun 7, 2018 · 3 min read
  1. Consumers are demanding transparency and knowledge of exactly what goes into their products.
  2. People are increasingly listening to their friends, celebrities and influencers. They want to know what a brand stands for, who else is using it and whether their favorite celebrity or influencer is behind it.
  1. The level of M&A shows the extent to which the incumbents know they need to make acquisitions to stay relevant — I wrote a post after the Dollar Shave Club acquisition on why I expect more M&A to come. 2017 alone saw over $300B of Retail and Consumer acquisitions.
  2. The CPG conglomerates are often not in touch with the customer. I went to the WWD Beauty CEO Summit two weeks ago — the largest CPG companies were there scouting for insights on emerging customer trends.
  1. Brands are becoming smarter in they way they market and reach customers where they spend the most time. They can now market 1:1 and know the exact price to acquire a customer on Facebook / Instagram vs. the old method of placing a magazine ad and hoping for the best. Knowledge is power in marketing.
  2. The speed with which new entrants are able to move, innovate and launch products will continue to be a competitive advantage. A CPG conglomerate told me yesterday that when they think of an idea, it usually takes 12–24 months from idea, to reaching customers. This can be <12 weeks for startups.

Lightspeed Venture Partners

Lightspeed is a VC firm focused on accelerating disruptive innovations and trends in the enterprise and consumer sectors. Lightspeed has backed 350+ companies globally in the past two decades including Snap, Honest Co., GIPHY, Nest, Nutanix, AppDynamics and MuleSoft.

Nicole Quinn

Written by

Investor at Lightspeed, Stanford alum, Former Consumer Analyst at Morgan Stanley and British 100m sprinter

Lightspeed Venture Partners

Lightspeed is a VC firm focused on accelerating disruptive innovations and trends in the enterprise and consumer sectors. Lightspeed has backed 350+ companies globally in the past two decades including Snap, Honest Co., GIPHY, Nest, Nutanix, AppDynamics and MuleSoft.