Tag: specialty retail

retail industry

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.

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Boosting Brand Equity and Entering the Asian Retail Market: A Market Segmentation Case Study for an American Retail Company

The digital age sets a challenging stage for specialty retail market players. As consumers increasingly turn to online shopping and webrooming, specialty retail market players must use the same technology to their advantage. Click To Tweet

Today, most of the consumers are shopping on their mobile phones and tablets rather than laptops or desktops. As a result, specialty retail market players need to create responsive site designs to optimize the customer experience. Additionally, implementing in-store smartphone targeting to gather customer data and deliver targeted offers for an omnichannel experience is a must for specialty retail companies to stand a chance in today’s competitive retail market. Furthermore, the market is highly fragmented and competitive, with no single retailer capturing more than a few percents of the market. This gives buyers a wealth of choices and makes it tough for any retailer to stand out. As a result, specialty retail players must increase their focus on assortment, trendiness, quality, pricing, and customer experience to develop and enhance their brand equity. Request ProposalThe global recession has also brought with it a host of challenges for specialty retail market players: rising labor costs and sluggish buying. It has also created a higher cost of goods sold and led to lower gross margins. As a result, sales of brick and mortar stores have struggled, although e-commerce continues to deliver strong growth.

Business Issues

  • The client: A leading specialty retail market player

The client is an American specialty retail market player headquartered in Minnesota. The company – with an annual turnover of over 40 billion USD – approached Infiniti with a specific business problem, which was to enter the Asian market and target potential market segments effectively. The specialty retail client also wanted to personalize their marketing campaigns and target customers individually to enhance customer service and satisfaction.

Additionally, with the help of Infiniti’s market segmentation solution, the client wanted to be more efficient in allocating their resources. The primary objective of the client was to devise effective strategies to identify pathways to accelerate product development without comprising on the quality of their products.

How Can Market Segmentation Help Specialty Retail Market Players?

With the growing demands of customers across the globe, specialty retail industry players are facing challenges to maintain their foothold across markets. Market segmentation engagements help businesses profile the needs and desires of the customers and develop products accordingly. Market segmentation also helps firms overcome the factors impeding the growth and take advantage of the new prospects. Specialty retail market players can leverage Infiniti’s market segmentation solutions to reduce costs and target the ideal potential customers.

Summary of our market segmentation solution

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Client Journey

The market segmentation experts at Infiniti followed a detailed qualitative and quantitative research approach and conducted surveys and interviews with leading stakeholders in the global specialty retail market to help the client identify the right demographics and position their product offerings effectively. To further help the retail company effectively allocate resources, the experts gathered information from a wide array of proprietary sources such as industry databases, paid company presentations, and forums.

Solution Benefits and the Business Impact

Infiniti’s market segmentation engagement helped the specialty retail market player to precisely forecast customer preferences and accordingly position their product offerings. This engagement also helped the client identify the needs and desires of the consumers and stay on par with the competition. This helped them increase brand equity and affinity. The client also implemented real-time marketing campaigns and identified the data inputs to be used to capture the Asian market. Furthermore, the specialty retail market client devised robust initiatives to drive better operational costs while maintaining the profitability of their business.

The Future

Like individuals, specialty retail companies are finding a new approach each new year by making resolutions to improve their performance. Among other things, these might include incremental improvements in supply chain efficiency, enhancements to customer experience, and omnichannel capabilities. Additionally, specialty retail market players are designing, curating, and brilliantly executing shopper experiences that simply cannot be had elsewhere. Also, robotics is being employed to cover for simple in-store operational tasks and free up human interaction to delight their customers.


A must-read case study for strategy specialists and decision makers looking to develop an understanding of the specialty retail market

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Marketing Strategy for a Prominent Specialty Retail Client Helps Improve their Marketing Campaigns

The global retail industry has seen a significant shift in the customer preferences in the recent years. The specialty retail industry focuses on catering to one specific retail market and comprises of products including automotive, specialty stores, and fuel retailing. The industry at large is fragmented and relies on factors such as increasing disposable income, rising consumer spending, and relative growth in the GDP to gain a sustainable growth in the market. Also, a stipulated market growth is showcased by the Asia-Pacific region as it comprises 31% of the global market share. Although the specialty retail market is witnessing a considerable growth owing to the increasing growth of middle-class population, the industry will face challenges due to certain factors including:

  • Changing customer demands: With the latest innovations in the specialty retail space, the consumers’ demands have been changing as they look for convenience in their product offerings. In this digital-era, retaining customers has become a major concern for organizations than acquiring customers. Also, the explosion of social media and mobile devices is creating awareness among the customers about the brands and products they require.
  • Supply chain: Today, the consumers are more informed than ever before and expect impeccable service. To meet the rising demands of the target audience, retailers are coming up with possible ways to minimize the operational cost without comprising the quality of the products offered. In addition, the organizations need to ensure that right products are delivered to the customers at the right time.

To address these challenges and deliver personalized offerings to the relevant target audiences, organizations are in need of a marketing strategy.IR_Brochure

The Business Challenge

  • The Client: Specialty retail firm
  • Area of Engagement: Marketing strategy

A prominent specialty retail client with a considerable number of stores spread globally wanted to refine their marketing models and develop a marketing strategy to attract customers. The client wanted to ensure that the products and services meet the customer demands and develop long-term profitable relationships with the customers. The client wanted to leverage the use of marketing strategy to respond to changes in customer perceptions and demand. The primary concern for the engagement was to identify and communicate the benefits of the business offering to the target market. Through the engagement, the client also wanted to develop a SWOT analysis to identify the strengths, weaknesses, opportunities, and threats in the specialty retail space.

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The Journey

To compete with sophisticated specialty retailers, the marketing strategy experts at Infiniti carried out extensive interviews and discussions with leading stakeholders in the industry. To deliver personalized brand experiences, Infiniti’s marketing strategy experts also compiled information across a wide array of secondary sources such as paid industry databases, trade shows, company presentations, and industry forums in the retail industry.

The Solution Benefits and the Business Impact

The marketing strategy solution offered by Infiniti helped the specialty retail client develop a marketing campaign that resonates with the target audience. The engagement also helped the client gain actionable insights on the unique selling points and choose the right price for the products and services offered. The engagement also sought ways to position the product in the marketplace and generate better returns on the investment. In addition, the marketing strategy also assisted the client to develop a retail marketing mix to differentiate the products with that of the competitors.

The Future

The future of specialty retail industry will be marked by innovations such as mobile payment solutions. With a considerable number of mobile users, it is estimated that 70 percent of mobile users in the United States will prefer making mobile payments. In addition, on an average, the mobile payment is estimated to account for $500 million by 2020.


A must-read case study for strategy specialists and decision makers looking to develop an understanding of the retail industry 

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supplement market

Market Measurement Study Helps a Specialty Retail Client Forecast the Growth of the Industry

The global specialty retail industry is anticipated to witness uncertain growth owing to macroeconomic factors such as higher disposable income, consumer spending, and GDP. The specialty retail industry is highly fragmented and typically consists of specialty stores, fuel, and automotive retailing. Additionally, the rapidly growing middle class, well-developed financing and credit facilities, availability of trained workforce at a competitive cost, and market-oriented stable economy are also expected to boost the market size of the specialty retail industry. However, according to the market measurement experts, it has been noted that the competitiveness in this segment is high and the barriers to entry are low. IR_BrochureFurthermore, the high degree of inflation, price competition, supply chain, and efficient inventory management are expected to pose a challenge for the industry.

Consequently, to accurately measure the market size, companies operating in the specialty retail industry have started leveraging the use of robust market measurement studies. Market measurement studies provide firms operating in the specialty retail space a firm baseline for marketing activities.

With years of expertise in offering a plethora of solutions, Infiniti’s market measurement experts help leading firms operating in the specialty retail sector gain a better understanding of their potential market size.

The Business Challenge

A renowned specialty retail industry client with business units spread across the globe was facing predicaments in understanding their potential market size across the industry. Additionally, the client wanted to gain recommendations on consistent and defensible statistics that they could build marketing programs and decrease the cost of customer acquisition. Furthermore, they wanted to gain a clear view of the total market size to help them plan their marketing activities accordingly.

Our Approach

To cater to the specialty retail industry client’s business requirements and help them gain a clear view of the current and future market size, Infiniti’s market measurement experts carried out a comprehensive qualitative and quantitative research methodology with leading stakeholders in the specialty retail industry. The experts also collated information from company presentations, paid industry databases, and industry forums to help the client gain consistent and defensible statistics to devise an effective marketing program across business units.

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Benefits of the Market Measurement Study:

  • Segmented market size by application in terms of the product and geography
  • Identified the potential customers for the company’s products and services
  • Gained a better visibility into the market sector, employee size, and turnover
  • Identified the local unit data about sites, site ownership, meters and purchasing across the specialty retail industry
  • Forecasted the growth of the industry by using output estimates and vital macroeconomic indicators

Benefits of Our Integrated Approach

The client, a major player in the specialty retail industry, gained actionable insights into the potential market size in a span of ten weeks. Additionally, the client was provided with consistent and defensible statistics to help them devise marketing programs and reduce the cost of customer acquisition.

A must-read case study for strategy specialists and decision makers looking to develop an understanding of specialty retail industry.

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