On this page we will share the newest and leading articles within FMCG and Retail. We at People Integrated always stay alert and want to make sure to be as updated as possible - and we of course want the same for you.
Retail and the New Normal
Unpredictable weather disrupts inventory and sales management. Unexpected bad or good weather can cause a drop of sales or “out-of-stocks” situations that cause customer frustration. Besides adopting sustainable practices, there are some day-by-day steps retailers can take, to better prepare for the weather events. Read more at Forbes, Online 2023.
As unprecedented inflation tends to ease its grip European grocers are expected to start the recovery from mid 2023 and invest in private labels, retail media, automation, sustainability and e-grocery. Read more about other grocery industry trends and recommendations for strategic priorities at McKinsey & Company, Online 2023.
Experts believe that reinventing the approach to customers should be one of 4 focus points for supply chain executives already today to outperform competitors over the next couple of years. Focusing on customer satisfaction might soon not be enough. Enabled customers (e.g. ones that are provided with gift wrapping upon delivery, which saves time and effort) are twice as willing to repurchase as customers who were merely satisfied. Read more at Gartner, Online 2023.
Experts state that employee experience is now the key driver of the customer experience. Various research has shown, that delivering superior experiences to both consumers and employees makes it possible to charge 16% more in a premium for their products and services, boost innovation and increase revenue. This article might bring inspiration to designing a better employee experience and capitalising on it. Read more at Harvard Business Review, Online 2023.
Recent digital advancements have greatly increased the efficiency of marketing actions. However, focusing on efficiency, some companies might overlook the emotional aspect of the customer journey. Moreover, when companies do consider emotional aspects, they tend to focus exclusively on creating positive emotional experiences. Multiple professionals agree that minimising negative experiences is often more effective. To do so they recommend addressing the two main detractors of a customer’s emotional journey: frustration and boredom. Read more at Harvard Business Review, Online 2023.
Many consumers are expecting brands to have “green” products in their lines and are willing to pay extra for that. Furthermore, businesses go out of their way introducing sustainable initiatives such as manufacturing products made of waste or recycled materials. The research though shows that consumers are not as quick at walking the talk when it comes to circular economy products (recycled-content products or made from waste from other industries). Researchers found out that in some cases when it comes to an actual purchase, perceived risks and emotions begin to win over the environmental benefits. Experts suggest though that longer warranties, certificates, subscription or rental service may improve consumer acceptance. Read more at Popular Science, Online 2022.
Airport retail has long been one of the focus points for many top-branded luxury brands. Airport shopping is not immune to digitalisation of retail, which goes hand in hand with the shift of generations. To stay afloat airports retailers have to embrace omnichannel sales, the seamless connection between digital platforms and in-store shopping. They need to rethink not only how to sell, but what to sell. The article provides five key steps to doing so. Read more at Bain, Online 2022.
Most marketeers and salesteams are aware of the very first purchase model AIDA (awareness, interest, desire and action). The advent of the Internet did not cancel the dynamics of sales, but has greatly modified it. It caused the rise of the digital marketing funnel, which embraces the non-linear way of online customer journey. The modern digital marketing funnel is inspired by the AIDA steps, but has 10 steps instead of 4 and expands further to after the point of sale initiatives. Even though digital marketing funnel is relatively a new concept, some marketing experts are already talking about “Flipping the Funnel”. You can check the details of the flipped customer experience funnel in the article. Read more at Kunocreative, Online 2018.
Do shoppers really want an effortless customer journey? Marketing experts agree, that you cannot set an equals sign between “effortless” and “satisfying” customer experience. A well-known routinized customer journeys, as effortless and predictable as possible - can sometimes backfire on a company. Experts are suggesting a framework of 4 journey archetypes, central point of which are customers journey expectations. 5 steps guideline will then help you tailor-make the right kind of journey for your product or service. Read more at Harvard Business Review, Online 2022.
We have experienced it, you have experienced it. Many retailers are using fear, uncertainty, and doubt (abbreviated as FUD) - one of the oldest tactics in the salesperson’s toolbox, first appearing in sales literature in the 1920s. This technique taps into the customer’s fear of missing out. The research shows that new times not only call for news techniques, but the new thinking is crucial for closing a deal. JOLT method presented in the article, could be an inspiration to many retailers, specially ones dealing with luxury goods. Read more at Harvard Business Review, Online 2022.
There is not one general description of how the events of this year have impacted the consumer sector. Many of the longer-term changes in consumer behaviour are still forming, giving companies an opportunity to help shape the next normal. So what can retailers and consumer-goods companies do to thrive in the new normal? Read more at McKinsey & Company, Online 2020.
As we reevaluate space, texture, light, sound and smell should take center stage. Many of our strongest memories of places are not visual, but embodied in a feeling or mood, which can be translated into digital shopping formats. Even in small doses, a taste of adventure can be the secret sauce that makes one brand stand out — especially in luxury, where the power of the experience is directly correlated with brand perception. Read more at Harvard Business Review, Online 2020.
The beauty sector is advanced because of the way beauty-loving consumers engage with the category, e.g. through youtube and in-depth storytelling. According to McKinsey, digital marketing and social media influence has gone faster in beauty than in any other FMCG industry, and others can therefore benefit from its experience. Whether the product is lipstick or diapers, it is essential to engage consumers - digital platforms have created a new way of marketing that is more than transactional - it is about creating a relationship. Read more at McKinsey & Company, Online 2018.
Retail and Cluster Strategies
Cities have been the world’s economic dynamos for centuries, attracting skilled workers and productive businesses and benefiting from economies of scale. Urbanization and per capita GDP tend to move in close synch as countries develop. But what is different about today’s wave of mass urbanization is its unprecedented speed and scale. Read more at McKinsey & Company, Online 2012.
Urbanization and industrialization continue to reshape the world’s economic order, creating a global consuming class that will be four billion strong by 2025. This report continues MGI’s urbanization research with a focus on understanding the global landscape for large companies—and how it will be reshaped by the rise of thousands of new corporate giants based in the emerging world. Read more at McKinsey & Company, Online 2013.
The world is in the throes of a sweeping population shift from the countryside to the city. The global urban population is growing by 65 million annually. For the first time in history, more than half of the world’s population is now living in towns and cities. Underpinning this transformation are the economies of scale that make concentrated urban centers more productive. Read more at McKinsey & Company, Online 2011.