retail and CPG Archives - Business Intelligence

Tag: retail and CPG

CPG Industry + Market Intelligence Solutions

The Game-Changing CPG Industry Trends of 2020: Learn what Infiniti’s Experts have to say

The consumer-packaged-goods (CPG) industry has struggled to grow over recent years. While the sector saw consistent growth over a decade ago, it faces a variety of challenges currently. The CPG industry is highly competitive and maintaining market share can be difficult in an uncertain market. With its recent shift to the digitization and the direct-to-consumer approach, the competition, and the need to develop targeted marketing strategies have risen simultaneously. Additionally, as the COVID-19 pandemic continues to affect the world, every industry faces significant changes.

The CPG industry needs to revamp its marketing approach before it is too late. Various CPG industry trends have surfaced over recent months, and any one of them could be a significant game-changer for the industry. As consumers’ buying behavior, spending patterns, and needs change, so should CPG marketing.

Over the beginning of 2020, the COVID-19 pandemic took a substantial toll on many industries and most markets, the consumer-packaged goods industry being one of them. Due to COVID-19, the CPG industry has changed its approach, and CPG marketing has been revamped and adopted a new strategy. Digital dependence has increased over the recent decade, and many industries have realized the benefits of the platforms digitization offers. Digitization is one of the most critical changes in the industry and has influenced every trend over recent times.

Another major challenge for smaller CPG companies is acquiring market share. As many top CPG companies continue to hold a significant market share in the industry, smaller companies analyze their strategies and attempt to adjust. In this article, Infiniti’s research experts discuss the industry trends that are changing the face of CPG marketing, as well as the biggest differentiator in the top CPG companies.

The CPG industry is currently facing a plethora of challenges, and Infiniti provides the ideal solutions to overcome them. To learn how Infiniti Research helps CPG companies gain market share, request a free proposal.

CPG Industry Trends of 2020

Game-Changing CPG Industry Trends

CPG industry trends have reformed the approach of companies towards marketing, consumers’ needs, and making an impact. The following four CPG marketing trends are the major game changers of the industry, and all companies need to understand and implement this into their marketing strategies.

Digitization and Omnichannel Marketing

With the constant advancements in technology and the ongoing COVID-19 crisis, how consumers interact with purchasing has changed drastically. The ability to provide products and services direct-to-consumer is highly sought-after. Efficiently executing operations over digital interfaces is a challenging prospect. It requires significant investment and multiple strategic and operational changes. However, the ROI, if efficiently executed, has proven to be worthwhile across industries. As companies compete for top rank on search engine result pages, a significant portion of the consumer packaged goods industry has very recently shifted to a digitized approach. This trend has changed how companies interact with consumers, how supply chains function, how key performance indicators are identified, and consumer needs and demands.

Digitization has also presented itself in marketing, moving many CPG industry players to an omnichannel marketing approach. This is the combination of traditional marketing, and an addition of newer platforms, and efficient consumer-centric environments. A comprehensive digital marketing approach can keep a company far ahead of the curve.

Personalization of Products and Services

The personalization of products and services has been a significant recent CPG industry trend. It creates a more personable experience across all ages and provides consumers with an experience. In recent times, experts have advised a focus on personalization of products and services. Providing customers with the ability to specify their wants and needs, such as a user-friendly website, can increase customer satisfaction substantially. Having both the company and the consumer investing time and energy into this personalized product reduces the chances of customer churn significantly and increases brand loyalty. It also helps companies learn consumers’ preferences, and habits, and use this data for future product design.

Sustainability in the CPG Industry

As global warming and the environmental crisis become real and overshadowing issues across the globe, consumers and companies have started taking a step towards reducing damage. Sustainable packaging and sustainable products are in high demand, as are companies that promote an important cause. Millennials and Gen-Z account for a large portion of consumers and create a mostly cause-driven environment for consumers and companies.

The CPG industry has started to invest majorly into sustainable practices, most evidently in terms of packaging. The reason for this is, though many companies want to make a change, revamping an entire product line to be sustainable is not viable. This is the reason various companies are turning to sustainable packaging, as well as the reason many sustainable start-ups are starting to dominate smaller markets. To stay ahead of the curve, CPG industries across the globe need to move to more environmentally friendly practices.

Brand Values and Social Causes

On a similar note as the previous point, brand identity and values have become a significant focus in the CPG industry. Millennials and Gen-Z find it more attractive and appealing to not only purchase, but also promote products and services from companies that share their values. Many CPG industry players have started to support various social causes on social media. Supporting a social cause is one of the crucial criteria for consumers’ brand loyalty. Additionally, having brand values that are widely accepted help organic engagement and impressions grow exponentially. A social media feed that further promotes and displays these values is highly beneficial for brands. Also, when companies choose to donate, assist in a crisis, or support groups in need, it is highly desired by consumers across the globe.

These and many other CPG industry trends have overwhelmed the market, to understand how they influence your company, get more information.

What sets the Top CPG Companies apart?

Several top CPG companies have maintained sales, customer retention rates, and market share continually over the past few years. CPG companies across the globe are attempting to attain the same. Infiniti’s research experts suggest market intelligence solutions. Analyzing, understanding, forecasting, and identifying crucial data for companies, market intelligence experts help some top CPG industry players achieve sustainable growth. Market intelligence solutions span wide in the functions they serve. Implementation is critical, and with our experts, some of the top CPG companies have implemented market intelligence solutions in the following ways:  

  • Target consumers: Digitization and efficient data management systems allow companies to procure and utilize information on the preferences and habits of their consumers. This enables efficient product development, and with focused segments, it provides for effective CPG marketing. Market trend analysis allows the top CPG companies to understand their consumers and develop comprehensive marketing strategies.
  • Staying ahead of market trends: By leveraging market scanning solutions, top CPG companies stay ahead of market trends. They stay informed on supply-demand shifts, track emerging market trends, keep tabs on target market segments, and gain insights on the impact of these factors. This helps them efficiently prepare and avoid losses or customer churn by strategizing prematurely.
  • Market Intelligence: Leveraging market intelligence solutions enables the top companies in the consumer-packaged goods industry to prepare for every barrier in the market. It also allows them to efficiently forecast changes, strategize, and prepare for CPG industry trends while also understanding consumers’ preferences and maintaining large market shares. Market intelligence firms such as Infiniti Research help CPG companies enhance sales and reduce churn rates significantly.

Being a leader in an industry as competitive as the CPG industry is difficult but achievable. To learn how companies can succeed in this industry, speak to our experts.

US Retail industry

Preparing for the Future of US Retail Industry: Key Areas that Need to be Addressed

Even though the age of ‘retail doom’ has been making headlines for the past couple of years, recent retail shopping trends and consumer spend patterns show that customer still favor brick-and-mortar stores over online channels. And this is expected to be one of the dominating US retail industry trends even in 2020. According to experts at Infiniti Research, the US retail industry is experiencing reinvention and transformation at an unprecedented speed. Due to this, the future of the US retail industry will be as challenging as it will be rewarding. In this article, our industry experts discuss some key questions that need to be answered by companies in the US retail industry right now in order to effectively prepare for the future.

Retailers with global aspirations are eyeing the US retail industry as their next target for expansion. Is your business equipped with strategies to face the rising competition? Request a free proposal to know how we can help your business with competent business strategies to combat rising market competition.

Are you meeting target customers online and offline?

Brand loyalty is something that companies in the US retail industry can no longer rely on even if they have a well-established brand name. In fact, our recent US retail industry analysis shows that over 50% of millennials and Gen Z consumers are attracted to smaller and more innovative brands rather than blindly making a purchase based on a strong brand name. Against this backdrop, it becomes even more important than ever before for brands in the US retail industry to engage with their consumers, especially on digital platforms. Digital channels are now one of the most important channels for retail growth and are believed to influence retail sales to a considerable extent. Experts at Infiniti Research also believe that digital channels will not only influence online sales but will also play a significant role in promoting offline sales. Providing omnichannel shopping opportunities is the way ahead for US retail industry companies, especially with e-commerce giants like Amazon venturing into the offline space, giving brick-and-mortar companies a tough competition.

Are you prepared to cope with the diversifying strategies of other retailers?

Several top retailers in the US retail industry have already begun expanding their business into other sectors such as healthcare. Moreover, non-retailers have also ventured into the retail business. For instance, a popular fitness company has now ventured into the healthy food business and fitness products retail. Most companies are now aiming to cross-industry boundaries and venture into territories that will help them expand their brand and at the same time capture greater consumer attention and market share with these cross-industry ecosystems.

To survive and thrive in the next decade, players in the US retail industry must refashion their businesses to capture opportunities arising from the changing retail industry trends. For more insights on how we can help your business achieve this get in touch with an industry expert from Infiniti Research.

Is your business positioned to win the talent war?

Traditional talent profiles will no longer be enough for players in the US retail industry to survive retail disruption. As retailers are increasingly focusing on becoming service and experience providers, talent that are highly skilled and have expertise in new industries will be paramount. For retail companies finding best-in-class talent may prove to be tough given the fact that other lucrative industries such as IT or finance tend to be more appealing for most in-demand talent profiles. Furthermore, the retail sector is generally perceived to be old fashioned and slow, making it even more difficult for US retail industry companies to hire from a competent and skilled talent pool.

Learn more about how we have helped clients in the US retail industry overcome their key business challenges

A Window of Opportunity to Win Customers in Central Europe’s Retail Sector

Retail sector

Central Europe’s retail sector: An overview

Central Europe is a highly value-oriented market where consumers strive to find new ways to stretch their budget without having to compromise on quality. Consumers in this market are constantly on the lookout for the best deals that both online and offline channels in the retail sector have to offer. In fact, in most Central European countries, promotions are becoming relatively commonplace. However, for companies in the region’s retail sector, winning consumers does not only mean merely offering mediocre-quality products at entry-level prices.

The most successful retail sector companies in Central Europe are those that are successful in finding ways to provide added value while keeping prices low. This can be achieved by improving product quality, offering a larger assortment, or providing a seamless and satisfying customer experience. Although the region is going through a phase of financial insecurity due to recent recession, this does not mean that only inexpensive products attract Central Europeans. As consumers in Central Europe are increasingly becoming omnichannel shoppers, they are educating themselves more on price and on product features. Companies in the CPG and retail sector must, therefore, ensure a consistent, value-oriented presence across channels establish a brand value for themselves in the future of retail in Central Europe. In addition, they must also act on some key priorities.

Consumers in Central Europe are in the search for the best value-for-money deals. Is your business prepared to meet the changing demands of consumers in this market? Request a free proposal to learn how our advanced market intelligence solutions can help your organization effectively tap market opportunities and stay ahead of the curve.

retail sectorInvest in ‘value for money’ brands

CPG and retail sector companies are rapidly offering higher quality or even premium products at mainstream price points. Private labels have become one of the most popular retail industry trends with several retail sector companies launching premium quality private label products and heavily investing in their advertisements. Advertisements can be used as a source to communicate emotional cues to consumers in order to make private labels an everyday household name while promoting the idea of value for money.

Expanding assortments

Companies in Central Europe’s retail industry are providing broader assortments in products to appeal better to consumes. Grocers, for instance, are providing variants including vegetarian, organic, and vegan products. Following this trend will be especially useful for fresh food and prepared meals categories. Retail sector companies can also experiment with introducing newer store formats by expanding their offerings in fresh produce, ready-to-eat meals, and grab-and-go snacks.

Wonder how you can achieve consistency and successfully adopt a value-oriented approach to win over consumer trust and loyalty? Get in touch with our experts for more insights on how we help clients across the globe to effectively achieve their business goals.

Digital technology to enhance CX

Retail sector companies and CPG manufacturers alike are investing in technology to enhance their omnichannel presence. Hypermarkets are incorporating more digital technology into their stores to help shoppers explore broader online assortments. They can also incorporate the use of digital kiosk that suggests specific items, depending on the occasion, food pairings, or customer preferences. These efforts will drive customer loyalty and offer a superior customer experience.

Final thoughts

Consumers in Central Europe are a new breed of shopper. They remember the past, were affected by the recession and are quickly trying to embrace a technological revolution. Consumers in this market are characterized by their nature to seek value for money, are extremely demanding, and expect superior technology and customer experience while shopping. As Central European consumers now have much higher expectations of retail sector and CPG companies, both offline and online, companies in the region have little choice but to innovate constantly across channels. Several have risen to the challenge; the rest should act soon or risk losing out to agile competitors.

For more insights on Infiniti’s solutions for retail sector companies, request for more information.

Retail industry

Overcoming Challenges in Retail with Infiniti’s Solutions – A Storyboard Series of Success Stories

Lower unemployment and tax cuts have fueled the growth of the retail industry over the past year. According to the retail industry experts at Infiniti Research, 2019 will be a precarious year for players in the retail sector. As the stock market is in flux, the future of retail is expected to be dominated by steepening tariffs. Furthermore, another intriguing retail market trend is emerging markets are taking on a greater share of global growth. This could also present several opportunities for savvy retailers who are willing to face the winds heads on.

Infiniti’s solutions to overcome challenges in the retail have helped several established brands to enhance their overall performance and drive greater business growth. This newsletter offers a snapshot of some of our success stories and how our experts helped clients overcome some major risks facing the retail industry.

Attracting new customer groups for a fast-fashion retailer using market opportunity analysis

Recently, several fast-fashion retailers have had to wind up their operations due to their inability to cope up with the dynamic market trends and ever-changing consumer demands. This has acted as a wake-up call for other players in this segment to reinvent their strategies to survive. This success story is a great example of how brands that have the courage to self-disrupt will emerge as winners. Our client, a fast-fashion retailer based out of Central America wanted to attract new customer segments and wanted to identify the right marketing channels to invest in. With our market opportunity analysis, they were able to effectively target the right customer groups and thereby increased their targeted segment spend by 19%. They were also able to reverse their declining sales in less than 60 days.

Using customer buying journey maps to identify untapped opportunities

Personalization of customer experience is becoming vital for companies in the retail industry to retain their customers. To do so, retailers will need to map their customers’ journey from awareness to the purchase stage. This is where the importance of customer buying journey maps come into play for companies in the retail industry. A German retailer wanted to devise personalized product offerings, develop better marketing strategies, and drive sales. Experts at Infiniti provided the client with a customer buying journey analysis solution and devised strategies to help them personalize their marketing and sales strategies to drive maximum sales. By identifying the right marketing channels to target customers the client was able to drive customer engagement and enhance ROI by 23%.

Competitive pricing analysis to boost sales and enhance profit margins by 19%

Companies in the retail industry resort to different pricing strategies based on their unique business goals and other key factors affecting their business. However, increase in the number of competitors in the market is increasing challenges in retail especially when it comes to setting prices for products. The client is a renowned company in the Canadian retail industry. The company was facing predicaments in pricing their products in line with the current market demand and adjust to the competitors’ pricing structures. Our competitive pricing analysis solution focused on identifying how similar products of the same category are priced in the Canadian market. This helped the client to identify the optimum price at which they can set their products to attract more customer while making steady profits. As a result, the client was able to overcome challenges in retail pricing and increase their profit margins by 19% in one year.

Reducing customer churn by 37% for a European retailer with customer needs assessment solution

The European retail industry is growing exponentially and presents huge opportunities for retail companies around the globe. Despite this steady growth, rising need for convenience and rapidly changing market realities are making it vital for retailers to understand customer needs and analyze their buying patterns. Our client is a well-known brand in the European retail industry. They noticed a steady decline in sales and consequently increasing customer churn in their business. They wanted to identify the prime reasons for them and overcome the key retail industry challenges coming their way. Infiniti’s customer needs assessment solution helped the client identify their customers’ unmet needs and demands. They also gained detailed insights on the product features that drive product purchase. With this, the company in the European retail industry was able to reduce customer churn rate by 37%.

CPG industry trends

Emerging CPG Industry Trends in Asia

The rapid economic growth in Asia has resulted in increased consumer spending. Over the next decade, we can expect continued economic spend in Asia especially as the middle class widens. The economic, industrial and social reforms have transformed the lifestyle and consumption patterns of consumers in the region.  Various changes in the demographic, economic, and technological landscape in the CPG industry in Asia have also given rise to new CPG industry trends. Lured by the growth prospects, several foreign companies have already begun planning their market entry strategies into the Asian CPG industry. For such companies, it is vital to scrutinize and be watchful of the CPG industry trends and formulate strategies accordingly.

To gain a competitive edge and survive in the fiercely competitive Asian market, foreign companies must take a holistic approach inclusive of critical CPG industry trends and opportunities. Learn how our solutions can help!

CPG industry trends in Asia

CPG industryRise of ecommerce

One of the most disruptive change experienced by CPG companies in Asia is the emergence of ecommerce. Ecommerce, which is well established in the West, is gradually expanding routes to the FMCG sector in Asia’s developing markets. Increased access to the internet and smartphones are fueling are presenting a valuable opportunity for brands to target and deepen their relationships with customers. Over the last year, CPG industry sales online saw a steady growth globally, with China being one of the prime contributors to this growth. This change in consumer shopping preferences will greatly impact the CPG industry in Asia.

Growth in premium goods segment

Luxury goods are becoming highly popular among Asian consumers, fueled by urbanization, higher GDP, and changing lifestyles. Although this was relevant earlier in the fashion industry, the premium segment is becoming one of the most attractive CPG industry trends to watch out for. Demand for premium FMCG goods is growing particularly in regions like China, where the demand for luxury purchases are on the rise even in smaller cities and rural areas.

While the opportunities in Asian’s emerging markets are exciting, the market terrain in these countries is complex and dynamic. Get in touch with our experts to learn how we can help you navigate the challenges and capitalize on the opportunities coming your way.

Changing demographics

The aging population is a growing concern in Asian countries. By the year 2050, a good majority of Asia’s population will comprise of the elderly, soon making it home to the oldest population in the world. Such shifting demographics will imply significant change to the CPG industry trends in the region. The demand for certain goods are likely to increase in the long-run while the demand for some currently well-performing segments are bound to decrease. Such CPG industry trends must be considered for companies planning their market entry strategies into Asia.

Strong home-grown brands

Home-grown brands in Asia enjoy a strong and loyal customer base and will continue to dominate the CPG industry in the region. Some of these brands have even mastered effective customer targeting, flexible distribution, social media marketing, and customer engagement. Local brands understand regional consumers and mostly follow low-cost strategies while focusing on efficiency.

Gain more insights on Infiniti’s solutions for companies in the CPG industry

Recent Posts

The Reasons Behind Soaring Private Label Success in the European Retail Industry

In the European retail industry, there is currently an unprecedented prominence of private labels. According to our industry experts, the sales and market share of private label brands have climbed to an all-time high in countries including Belgium, Netherlands, Austria, Denmark, Poland, Sweden, and Norway. Our experts believe that some of the key drivers behind the success of private labels are the expansion of retailing around the world, the emergence of e-commerce, the success of discounters, and changing millennial shopping habits. Furthermore, Private labels allow companies in the retail industry to offer something distinct to their customers. With intensifying competition in the retail industry, private labels have grown to include exclusive products aimed at increasing brand loyalty.

Brands in the retail industry should always be on the lookout for opportunities to better serve their customers. Request a free proposal to know how we can help you capitalize on the right market opportunities.

retail industryThe rise of millennials

Millennials are expected to outnumber baby boomers over the next decade as the generation with the highest discretionary spending power. Millennials are known to be experimental in trying out new products and consequently, private labels are becoming increasingly popular among this group. They demand products that do more, provide greater convenience and offer a variety of lifestyle options and are known to undertake extensive research before buying products. Loyalty to established brands in FMCG cannot be expected from millennials. As a result, almost all major retailers in Europe have developed sophisticated private label programs that give tough competition to established FMCG brands.

Attractive and meaningful packaging

Modern retailers have realized the importance of attractive and meaningful packaging and generally, they have been succeeding in using packaging to get the right message across to shoppers. In the case of private label, it is mostly up to the retailer to set the specification, and there has been some heavy investment in packaging solutions. Apart from increasing the market share, private labels have also undergone stratification with the rise of premium and mid-range offerings besides the traditional bargain ones. Stratification has been in practice over several decades. Today, however, we can see stratification based on factors including organic, natural, gluten-free, and value-based.

Private label is a secret weapon for retailers today. To use it right and maximize its potential, experts at Infiniti can help you as it has done with many companies in the retail industry. Get in touch with us for more insights.

Health-conscious customers

The UK is a market where players in the retail industry use private-labels to reinforce an already-strong store equity position. The major supermarkets’ strategy has been to grow private-label sales. This can particularly be seen in fresh foods, while reducing the range of packaged goods. Retailers are gradually expanding their private-label brands to include healthier options, including for consumers with special dietary needs, and recommends looking for opportunities to remove, reduce or replace undesirable ingredients in their prepared foods. The benefits are also being prominently highlighted on packages and with in-store signage.

Ecommerce boom

Private labels are being disrupted on many various levels due to the rise of ecommerce. Several top ecommerce companies are fragmenting the path to purchase and opening new opportunities for private labels. E-commerce platforms are opening up many doors to expand the sales of private labels.

Learn more about Infiniti’s solutions for companies in the retail industry

target market segmentation

Western Europe’s CPG Industry Trends to Expect Over the Next Decade

The CPG industry in Western Europe is poised to witness new waves of change over the next decade. Due to the current CPG industry trends such as migration from offline to online shopping channels, investors ushering in new streams of consolidation, and increasing regulations for CPG manufacturers, players in the CPG industry must reinvent their strategies if they are to thrive in the long-run. In this article, experts at Infiniti outline some of the key consumer packaged goods industry trends that we can expect to see over the next ten years in Western Europe.

Surviving in the saturated markets of Western Europe, in the long run, requires businesses to accurately foresee market changes and draft powerful strategies to adapt. Request a free proposal to know how our solutions can help.

Western Europe’s CPG industry trends

CPG industry trendsEmergence of niche consumer segments

The mass market will soon shrink, giving rise to a range of small yet lucrative customer segments. For instance, CPG industry trends like healthy foods, environmentally friendly product, and increased personalization will gain momentum. CPG companies that want to stay abreast with such CPG industry trends and effectively serve these market segments will have to be innovative and agile.

Cross-channel shopping and growth of discounter sales

Modern consumers now want to shop at more than one type of stores. Such CPG industry trends are becoming highly popular among consumers in Western European countries. They are increasingly making purchases from multiple retail formats, channels, and banners. Furthermore, in European countries such as Italy, Spain, and Germany, discounter sales are gaining increased momentum. Although such CPG industry trends could prove to be a threat for branded manufacturers, it could also prove to be a great opportunity for companies that decide to venture into private-label manufacturing.

We can help CPG companies in Western Europe build operating models that hold promise as future growth engines. Get in touch with us to know more!

Digital shopping

‘Going digital’ is one of the vital CPG industry trends that is going to take the sector by storm. One such trend is ‘online grocery’ which is gradually becoming a vital source of income for both retailers and CPG manufacturers. Furthermore, as online grocery shoppers tend to buy the same items every week rather than browse for new products, it is essential for CPG brands to secure a place on consumers’ digital shopping lists once this trend goes mainstream.

Stricter regulations

Government bodies across Western Europe are introducing new measures to boost consumer protection and promote sustainability. Changing environmental standards and new laws will make it harder for companies operating in Western Europe to stay ahead of the regulatory curve.

Learn more about how Western Europe’s CPG industry is changing

supply chain challenges

Top Supply Chain Challenges Facing CPG Companies

The Consumer packaged goods (CPG) industry is already experiencing a seismic change due to challenges including rising raw material costs, stalled demand, declining profits, skyrocketing retail pricing pressures and the never-ending shift in consumer preferences. Furthermore, the changing consumer preferences is bringing about new supply chain challenges for CPG companies. Companies selling consumer packaged goods must effectively identify and mitigate supply chain challenges coming their way in order to drive growth by reaching new customers and channels.

Leaders of consumer products companies need to strike a delicate balance between cost, quality, product innovation, and market growth, all while maintaining margins. Request a free proposal to know how experts at Infiniti can help you achieve this.

Supply chain challenges for CPG companies

supply chain challengesConsumer demand for variety

Modern consumers are highly demanding. As a result, there is a constant urgency among players in the CPG industry to offer new products that match the changing consumer preferences. This translates to more SKUs and shorter product lifecycles. Th consequent complexity in product development, sourcing, production and fulfillment will add on to the supply chain challenges faced by CPG companies. Reacting to changes in consumer preferences would mean that the CPG supply chain needs to be agile enough so that the required adjustments can be orchestrated end to end across the supply chain.

Venturing into new markets

Experts at Infiniti research are of the opinion that the fastest growing CPG companies are those that choose to compete in the fastest growing product categories and geographic territories. Investing in the right markets is one of the key drivers for growth, which comes with its own set of supply chain challenges. Furthermore, overcoming key supply chain challenges in terms of flexibility will help companies in the consumer packaged goods industry to easily penetrate new markets and create potentially new delivery models and fulfilment channels.

Get in touch with our experts for more insights on how CPG companies can overcome critical supply chain challenges.

Digital transformation of supply chains

Amidst the rising popularity of digital innovations and enhanced customer experiences, it is no surprise that digital transformation is one of the critical agendas for top executives at leading global CPG companies. However, this cannot be rolled out successfully unless their back-end infrastructure is not capable enough to ensure timely delivery of goods.

Learn more about infiniti’s solutions for business

Market segmentation

4 Common Retail Market Segmentation Mistakes that You Might be Making

Even the most successful retail companies agree that the ‘one size fits all’ approach is no longer a viable option to survive in today’s exceedingly competitive marketplace. As such, they are using techniques such as retail market segmentation to stay ahead of the game. However, often the lack of preparation or faults in implementation of a retail market segmentation strategy is where companies fail, and this is just the beginning for any retailer looking to segment their audience and better target the most valuable consumers. With over 15 years of experience in engaging retailers in successful retail market segmentation analysis and implementations, experts at Infiniti Research have identified four retail market segmentation mistakes that companies often make and also suggests how to avoid them.

Improve your marketing effectiveness with the right retail market segmentation strategy. Request a free proposal from our experts.

Why do retail market segmentation strategies fail?

 

Retail market segmentation

Defining segments too broadly

Segmenting the customer segments too broadly is one of the most common retail market segmentation mistakes that most companies make. This will consequently make them fall short to a competitor who targets more narrowly. Retailers can successfully create narrow segments by analyzing their customer accounts, website visits, and transaction history. By doing so, companies can better target customers. For instance, a customer who may be frequently purchasing a particular product and may be interested in a new and improved version of the product that the company is planning to launch. Although this might be challenging to achieve at the moment, but it would be more feasible when over time more and more data is gathered.

Not aligning business by market segments

Successful retailers tend to create market focused teams or segments which later gets organized into a market-focused business model. This allows the customer communications and transactions to be more targeted, consequently, making the business more streamlined. Businesses who refrain from doing so are more likely to find their retail market segmentation strategy fail.

By segmenting your customers into different, narrow subcategories, you’ll create more targeted experiences for them that result in better marketing and a better ROI from your marketing efforts. Get in touch with our experts to know how we help our clients achieve this.

Managing segments locally

Some businesses that operate in a smaller market currently tend to set up their retail market segmentation strategy to only apply to their local or regional organization. Although this may work well at present, in the long run when the business grows there are chances that the retailer will get blind sided by a more dynamic global economy.

Unclear retail market segmentation results

An effective retail market segmentation analysis should provide the company with strategic direction to move forward. Furthermore, it should also provide a clear idea of which markets are the most viable to target. If a retail market segmentation research does not meet these requirements, then it is an indicator of a failed approach. So, before beginning, get your research team together and clearly define their goals and the information you’re aiming to get.

Learn more about Infiniti’s solutions for retail businesses.

challenges in retail

Headwinds Facing the US Retail Market Right Now

The US retail industry is fairly consolidated and heterogeneous. Although it is one of the biggest retail markets in the world, it is also the most competitive. The top ten retail companies in the US retail market is known to hold one-third of the total market share. Furthermore, the enormous transformation in the sector has brought about new challenges in retail industry. Amidst the constantly evolving market factors, retailers are finding themselves in an uphill battle to profitably increase growth and market share. While retailers may expect increased spending by consumers in the near future, preparing for uncertainty by anticipating and responding to potential retail industry challenges has to be a large part of their overall strategy.

Infiniti possesses over 15 years of experience in helping retailers to increase business agility and decrease operating costs. Request a free proposal to know more about how our solutions can help overcome the key challenges in retail markets.

Challenges in retail market in the US

challenges in retailAttaining operational efficiency

Managing complexities and coping with the changes are some major challenges in retail right now. Yet, in order to bring efficiency to their tasks and processes, companies in the US retail industry must identify ways to deal with complexities and cope with the dynamic market conditions. Today, businesses that are running their operations based on spreadsheets find that it does not allow them to be scalable and grow with the business. Therefore, efficiency in managing their operations is vital for retailers to thrive and overcome the key challenges in retail.

Technological challenges

Most retail companies in the US continue to use outdated technologies. Although many of them understand that using outdated technologies will only add on to the already existing challenges in retail market for them, they often fail to find the required investments needed for an upgrade. Evolving technologies, including automation and business intelligence, have immense potential to transform the day-to-day operations of a retail store. Automation can ensure substantial operational cost reductions when applied to routine and repetitive tasks. It can also provide greater visibility and decision-making support to the retail business owners and operators.

Only by combining streamlined business processes, seamless cross-channel customer service, and personalized marketing campaigns can retailers expect to create buyer experiences which can combat the fickle nature of the modern consumer. Get in touch with our experts for more insights on how to overcome challenges in retail markets with our solutions.

Direct to consumer channels

While retailers are planning their stores for the future, manufacturers are increasing the challenges in retail through direct-to-consumer channels. This helps manufacturers to not lose any extra margin to the retailers. Furthermore, these channels enable them to collect data about customers, which allows them to engage with customers in a personalized manner, driving brand attraction and customer loyalty.

Control over accounts payable process

Retailers engage with several different suppliers. Manually managing the constant flood of invoices makes having control over the accounts payable process difficult for retailers. Such challenges in retail companies lead to a direct impact on the financial forecasting of the business and ultimately affect their bottom line. Partnering with industry players helps retailers to empower fewer resources to manage the accounts payable process while simultaneously increasing process accuracy, accelerating invoice processing, and optimizing payment timing to allow them to take advantage of vendor offered discounts.

Learn more about how Infiniti’s solutions can help overcome challenges in retail.

Close
Infiti Logo

Hello there!

Contact us to know more about our cost-effective custom market research offerings to support efficient market penetration, new product launch, and devise strategies to monitor and outperform your competitors.

Cookie Policy

The Site uses cookies to record users' preferences in relation to the functionality of accessibility. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice