Why eCommerce & Direct-To-Consumer is the future for Consumer Goods companies
Debbie Morrison • November 16, 2022

Australia's FMCG industry is in a state of flux, with special thanks to the COVID-19 pandemic. As each wave of coronavirus infection spread across the nation, brick and mortar stores have been forced to shutter their doors—leaving many FMCG companies struggling to stay afloat.


But all’s not lost for the retail world. Indeed, while wholesalers and traditional retail channels fell by the wayside, another challenger rose to the occasion: eCommerce.


In April 2020, during the first few months of lockdown, over 200,000 Australian shoppers started shopping online for the first time. This surge in eCommerce spending would barrel onwards to reach US$62.3 billion in 2022, up from US$49 billion in 2021 and US$38 billion in 2020.


But the pandemic isn't the only reason why eCommerce is on the rise.


In fact, it's just one of many factors that are coming together to create a perfect storm for FMCG companies to finally make the switch to direct-to-consumer (D2C) models. And in order to secure a competitive foothold in the growing D2C space, companies need to take advantage of eCommerce and digital transformation as a whole.


Let's take a look at why eCommerce and D2C are set to shake the foundations of the FMCG space.


1. eCommerce is growing—fast.

There's no denying that eCommerce is on a meteoric rise, with the figures we provided above showing this in no uncertain terms. In fact, it's growing at such a rapid pace that it's set to overtake traditional brick-and-mortar retail within the next decade.


This is thanks in part to the ever-growing list of eCommerce platforms and marketplaces, such as Amazon and Catch, which are making it easier than ever for companies to sell online. But it's also due to the fact that consumers are becoming more comfortable with buying things sight unseen. In other words, they're becoming more trusting of the online shopping experience.


2. There is a growing focus on going local.

The pandemic has also shone a light on the importance of supporting local businesses. Indeed, as global supply chains have been disrupted, many consumers have turned to local companies in order to get the items they need.


This trend is likely to continue even after the pandemic ends, as people have become more aware of the importance of buying from brands that are closer to home. In fact, a recent study found that 71% of Australian consumers said they were more likely to buy products from a company that was based in Australia.


In response, eCommerce marketplaces such as eBay are making it easier for local companies to find an audience, whereas they'd have a much more difficult time breaking into traditional retail channels.


3. D2C makes for more efficient, resilient supply chains.

The traditional retail model—in which FMCG companies sell their products to wholesalers, who then sell them on to retailers, who finally sell them to consumers—is no longer fit for purpose. In fact, it's become increasingly convoluted and outdated, especially in the age of eCommerce.


What's more, as we've seen with the COVID-19 pandemic, this model is also extremely vulnerable to disruption. This is because there are so many different links in the chain that it only takes one weak link to cause the whole system to break down.


On the other hand, D2C models are much more streamlined, as there is no need for wholesalers or retailers. This not only makes them more efficient but also much more robust in the face of disruption.


4. D2C models allow brands to better connect with their customers.

D2C models have a number of advantages over traditional retail models, the most notable of which is that they allow companies to build direct relationships with their customers. This is thanks to the fact that they cut out the middleman, giving companies direct access to customer data and feedback.


What's more, D2C models also give companies more control over their pricing, product development, and branding. And because they're not relying on wholesalers or retailers to sell their products, they're far more agile and responsive to change.


5. Digital, online payments are growing in popularity.

Another factor that's driving the growth of eCommerce and D2C is the increasing popularity of digital, online payments. Indeed, as consumers become more comfortable with making online purchases, they're also becoming more comfortable with using digital payment methods.

And that's not just limited to the usual suspects, such as PayPal, Apple Pay, and Google Pay.


There are also Buy Now, Pay Later services such as Afterpay, which allow users to pay in installments without using a credit card. There are even subscription services like Amazon Prime, as well as online marketplaces such as Facebook Marketplace that make it easier for both merchants and other consumers to sell to people directly.


A digital-driven future for FMCG

The writing is on the wall—eCommerce and D2C are the future for FMCG companies. Thanks to a number of factors, such as the growing popularity of online shopping and the increasing use of digital payment methods, more and more companies are making the switch to the D2C model. 


It's clear that digital transformation is pivotal for FMCG companies that want to stay ahead of the curve and remain competitive in the years to come. And there's no reason why your company can't be one of them—but only with the right people in place to lead the charge.


At ELR Executive, we've spent the last two decades building the expertise and network of suppliers and retailers that will allow your business to succeed in the digital age. So, if you're ready to make the switch to eCommerce and D2C, we can help. We've put together a guide that outlines the key steps you need to take to find the right people for the job.


Download your copy at the link below.

ELR Executive Guide to Building a Culture of High Performance


And if you're ready to take your business to the next level, you can reach out today to see how we can help you find the leadership you need to succeed.


By John Elliott June 26, 2025
You don’t hear about it on the nightly news. There’s no breaking story. No panic. No protests. Just rows of vegetables being pulled out of the ground with no plan to replant. Just farmers who no longer believe there’s a future for them here. Just quiet decisions — to sell, to walk away, to stop. And if you ask around the industry, they’ll tell you the same thing: It’s not just one bad season. It’s a slow death by a thousand margins. 1 in 3 growers are preparing to leaveIn September 2024, AUSVEG released a national sentiment report with a statistic that should have set off alarms in every capital city: 34% of Australian vegetable growers were considering exiting the industry in the next 12 months. Another one-third said they’d leave if offered a fair price for their farm. Source: AUSVEG Industry Sentiment Report 2024 (PDF) These aren’t abstract hypotheticals. These are real decisions, already in motion. For many, it’s not about profitability anymore, it’s about survival. This isn’t burnout. It’s entrapment. Behind the numbers are people whose entire identity is tied to a profession that no longer feeds them. Many are asset-rich but cash-poor. They own the land. But the land owns them back. Selling means walking away from decades of history. Staying means bleeding capital, month by month, in a system where working harder delivers less. Every year, input costs rise, fuel, fertiliser, compliance. But the farmgate price doesn’t move. Or worse, it drops. Retail World Magazine reports that even though national vegetable production increased 3% in 2023–24, the total farmgate value fell by $140 million. Growers produced more and earned less. That’s not a market. That’s a trap. What no one wants to say aloud The truth is this: many growers are only staying because they can’t leave. If you’re deep in debt, if your farm is tied to multi-generational ownership, if you’ve invested everything in equipment, infrastructure, or land access, walking away isn’t easy. It’s a last resort. So instead, you stay. You cut your hours. Delay maintenance. Avoid upgrades. Cancel the next round of planting. You wait for something to shift, interest rates, weather, prices and you pretend that waiting is strategy. According to the latest fruitnet.com survey, over 50% of vegetable growers say they’re financially worse off than a year ago. And nearly 40% expect conditions to deteriorate further. This isn’t about optimism or resilience. It’s about dignity and the quiet erosion of it. Supermarkets won’t save them, and they never planned to In the current model, supermarket pricing doesn’t reflect real-world farm economics. Retailers demand year-round consistency, aesthetic perfection, and lower prices. They don’t absorb rising input costs, they externalise them. They offer promotions funded not by their marketing budgets, but by the growers’ margins. Farmers take the risk. Retailers take the profit. And because the power imbalance is so deeply entrenched, there’s no real negotiation, just quiet coercion dressed up as "category planning." Let’s talk about what’s actually broken This isn’t just a market failure. It’s a policy failure. Australia’s horticulture system has been built on: Decades of deregulated wholesale markets Lack of collective bargaining power for growers Retailer consolidation that has created a virtual duopoly Export-focused incentives that bypass smaller domestic producers There’s no meaningful floor price for key produce lines. No national enforcement of fair dealing. No public database that links supermarket shelf price to farmgate return. Which means growers, like James, can be driven into loss-making supply contracts without ever seeing the true economics of their product downstream. But the real silence? It’s from consumers. Here’s what no one wants to admit: We say we care about “buying local.” We say we value the farmer’s role. We share those viral posts about strawberries going unsold or milk prices being unfair. And then we complain about a $4 lettuce. We opt for the cheapest bag of carrots. We walk past the "imperfect" produce bin. We frown at the cost of organic and click “Add to Cart” on whatever’s half price. We’re not just bystanders. We’re part of the equation. What happens when the growers go? At first, very little. Supermarkets will find substitutes. Importers will fill gaps. Large agribusinesses will expand into spaces vacated by smaller players. Prices will stay low, until they don’t. But over time, we’ll notice: Produce that travels further and lasts less. Fewer independent growers at farmer’s markets. Entire regions losing their growing identity. National food security becoming a campaign promise instead of a reality. And when the climate throws something serious at us, drought, flood, global supply shock, we’ll realise how little resilience we’ve preserved. So what do we do? We start by telling the truth. Australia is not food secure. Not if 1 in 3 growers are planning to exit. The market isn’t working. Not when prices rise at the shelf and fall at the farmgate. The solution isn’t scale. It’s fairness, visibility, and rebalancing power. That means: Mandating cost-reflective contracts between retailers and suppliers Enabling collective bargaining rights for growers Building transparent data systems linking production costs to consumer prices Introducing transition finance for smaller producers navigating reform and climate pressure And holding supermarkets publicly accountable for margin extraction But more than anything, it means recognising what we’re losing, before it's gone. Final word If you ate a vegetable today, it likely came from someone who’s considered giving up in the past year. Not because they don’t care. But because caring doesn’t pay. This isn’t about nostalgia. It’s about sovereignty, over what we eat, how we grow it, and who gets to stay in the system.  Because the next time you see rows of green stretching to the horizon, you might want to ask: How many of these fields are already planning their last harvest?
By John Elliott June 20, 2025
If you're leading an FMCG or food manufacturing business right now, you're probably still talking about growth. Your board might be chasing headcount approvals. Your marketing team’s pitching a new brand campaign. Your category team’s assuming spend will bounce. But your customer? They’ve already moved on. Quietly. Like they always do. The illusion of resilience FMCG has always felt protected, “essential” by nature. People still eat, wash, shop. It’s easy to assume downturns pass around us, not through us. But this isn’t 2020. Recessions in 2025 won’t look like lockdowns. They’ll look like volume drops that no promo can fix. Shrinking margins on products that no longer carry their premium. Quiet shelf deletions you weren’t warned about. The data’s already there. According to the Australian Bureau of Statistics, consumer spending is slowing in real terms , even as inflation eases. The Reserve Bank confirmed in May: household consumption remains subdued amid weak real income growth . And over 80% of Australians have cut back on discretionary food spending , according to Finder. They’re still shopping, just not like they used to. A managing director at a national food manufacturer told me recently: “We won a new product listing in April. By July, it was marked for deletion. The velocity wasn’t there, but neither was the shopper. We’d forecasted like 2022 never ended. Rookie mistake.” That one stuck with me. Because I’ve heard it before, just in different words.