Business - Written Tuesday, November 10, 2009 by Denis Hancock - 2 Comments

Alice.com: can selling online (through a new intermediary) work for CPGs?

The recession has been a challenge for CPGs – particularly as price-sensitive shoppers flock towards cheaper, private label products. With many analysts believing this flight to private label goods will outlast the downturn (see: The Economist), the companies may be facing a long-term challenge – with the dreaded undertone of “commoditization” floating in the background as buyers increase market power at the expense of suppliers. However, there’s one particularly interesting option such companies have not really embraced as of yet – selling via the Internet. As also noted in The Economist, this is the exact type of “game changer” that P&Gs new boss is now looking at.

Alice.com is a relatively new start-up that might represent a step in that direction. Originally profiled in June by TechCrunch, the company is hoping to do to “home essentials” shopping what the likes of Amazon (et al) have done to books, clothing, shoes and electronics. The basic value proposition is buying through the site instead of trudging to the store. And they try to add value by “tracking” what you are running low on and sending reminders, as well as finding coupons and deals. Here’s a quote from the CEO summarizing what they’re trying to do: Continue…