Celso Shim

- 25:00 min

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How PepsiCo is Growing its Ecommerce Business in Europe

📍Barcelona, Spain

PepsiCo is strategically growing its e-commerce business in Europe, leveraging a dual focus on delivering significant growth and developing unique capabilities. Celso Borges Shimabukuro, VP of E-commerce at PepsiCo Europe, highlights that e-commerce requires a different set of skills compared to traditional offline business. This growth strategy involves specialized teams in various geographical units such as the UK, Southwest Europe, and North Europe. Additionally, PepsiCo has established leads for specific pillars like channel development, demand generation, and data and tech experience to enhance their e-commerce capabilities.

PepsiCo’s e-commerce primarily operates through partnerships with major retailers like Tesco.com, Carrefour.com, and digital natives like Getir and Amazon. While direct-to-consumer (DTC) initiatives are still in the experimental phase, they form a small but growing part of PepsiCo’s strategy. Celso notes that while 99% of their business is through retail partners, the company is testing DTC assets to understand better the potential of this channel. For instance, the UK, being an advanced market, has seen significant adoption of e-commerce, and capabilities developed there are often scaled to other regions.

A significant challenge for PepsiCo is replicating the impulsivity of offline purchases in an online environment. Impulsive buying, which is common at physical checkout lines, is harder to simulate online. To address this, PepsiCo focuses on creating interruption points during the digital journey that entice consumers to make spontaneous purchases without disrupting their shopping experience. The company has explored rapid delivery services and occasion-based marketing, such as during football matches or specific weather conditions, to capture these impulsive buying moments digitally.

PepsiCo also emphasizes the role of retail media networks in enhancing e-commerce. Although Europe lags behind the US in this area, it presents an opportunity to leverage US learnings. Retail media networks allow for precise targeting and retargeting, which improves the efficiency and effectiveness of marketing efforts. Celso believes that as these networks develop, they will contribute to a virtuous cycle of investment in digital commerce, ultimately benefiting retailers, consumers, and PepsiCo by providing better insights, personalized marketing, and higher returns on investment.

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