Kantar Retail has released our overview of our view of the world of 2016 and the most important ways in which we see the retailer/supplier ecosystem changing over the next 10 months. The title “Changing What Matters” reflects how broad we think this transition is. We detail trends that have been unfolding for some time and where the work may feel more like an incremental continuation than a reinvention. Simultaneously, other trends will eventually have an impact much greater than it may appear from the perspective of 2016.
Best-in-class companies will win the year by deploying the right resources against the new “things that matter.” These companies will:
#1 Know their shopper’s total journey to purchase as holistically as possible. They will be able to tie that journey to the places where shoppers get to know and love brands well before purchase intent, since this new path can move from anywhere to purchase instantly.
#2 Become fluent in the digital ecosystem for shopper connection. The language of addressable, behavioral, and contextual marketing is new to many of us, but we need to learn it and act upon it quickly.
- 10 criteria for best-in-class companies to meet in 2016
#3 Own the strategic narrative with their trading partners. Their strategies will be fueled with great insights on where the world is going, and they will have a clearly articulated vision of where their categories are growing and how to get there.
#4 Radically rethink their go-to-market strategies at both a national and city level. The palette of global growth has changed hue significantly, and few companies are well-prepared for a genuinely multipolar growth world (as opposed to a big bet on China and hoping the rest works out). And a new eCommerce-enabled urban world will require new trading relationships and new ways of evaluating existing trading relationships to ensure our brands are where shoppers want to spend.
#5 Make physical stores generate cash more effectively. Asset owners need those assets to produce cash far more effectively, and that cash-flow equation will be more granular and complex. Assortment and space optimization will be critical components of this cash flow generation process.
#6 Make virtual stores generate engagement and sales more effectively. Best-in-class companies will move from experiment to expertise in the world of mobile and digital purchase occasions.
#7 Make every dollar they spend to drive shopper demand work as effectively as possible. Trade promotion effectiveness across channels and platforms will be critical for suppliers and retailers as every dollar of expense faces increased scrutiny.
#8 Test and learn faster and smarter. They will use great tools and smart process to turn their insights into practical prototypes they can trial and adopt quickly.
#9 Ensure execution in the physical and digital world. Through shelf compliance and online tools to assess findability and shoppability, best-in-class companies will not leave a single dollar of generated demand unconverted due to poor execution.
#10 Embed these new capabilities within their organization.
To learn more on how we arrived here, click here for the full report.