South Koreans are known to have the longest working hours in the world, with executives often too busy to go shopping for grocery at a traditional store.
Tesco, the UK giant, introduced “virtual stores” in response to this. These ‘stores’ are essentially a display of products on the walls of metro stations and bus stops. Commuters, especially those who are tech-savvy and time poor could scan the QR codes of products on display with their smartphones, and place orders while waiting for their trains or buses.
This initiative was so successful, they decided to launch this in the UK too.
On 6 Aug, they launched UK first virtual store for passengers who were leaving on holidays holidays. This gave holiday makers leaving from Gatwick North terminal the opportunity to order milk, groceries and other essentials that they needed when they got back from holiday. No one likes coming back home to an empty fridge!
Passengers/shoppers were able to browse basic necessities ranging from milk and bread to toilet paper displayed on vending machine sized screens. Through the app, they could scan bar codes/QR codes underneath those products, buy the products and arrange for these to be delivered on their day of return.
According to The Drum, Tesco’s internet retailing director Ken Towle, said that the virtual store “blends clicks and bricks” as it brings together the “love of browsing with the convenience of shopping online.”
Right product, Wrong time
While this was a great initiative that should have succeeded, Tesco were ahead of times with this launch. Especially for the UK market. While shoppers in Korea were all tech savvy and used to e-commerce, shoppers in the UK were more inclined to want to go to stores and shop in person.
So the roll out of any further virtual stores were shelved, unfortunately!
2020 lockdowns accelerated the adoption of e-commerce and technology (scan & go) in retail in the UK. Had Tesco launched their virtual stores now, they may have seen very different results.
According to McKinsey, commerce media is using transaction data to gain audience insights to make advertising more effective by improving targeting, deliver relevant shopper/consumer experiences and connect impressions to sale, both online and in ‘physical’ stores.
It is about leveraging large-scale purchase and intent data to draw insights that add value to consumer experiences
Sounds vague and confusing? Read on.
Commerce media covers all possible uses of retail data
Commerce media includes the use of insights generated by (online & otherwise) retail data in the online & on-site retail universe. This covers not only the retailer or the brands sold by the retailer, but also third party service providers who want to increase their ROI on marketing spend. They do this by targeting shoppers in a way that they previously could not do before.
Amazon was an early pioneer in this space and now other retailers are catching up fast.
However, supermarkets and other retailers are fast developing retail media networks of their own (Source: McKinsey).
Commerce media also gives retailers in low margin industries (like grocery & FMCG retail) the opportunity to increase margins by selling these insights along with online/on-site advertising space. We all know that consumers already want personalized experiences and only relevant ads. By leveraging retail media, companies will soon be able to deliver targeted ads and experiences through which shoppers can buy within the context of a TV show or the Metaverse.
Insights generated by retail media networks can help companies deliver the targeted experience that consumers want. This in turn will result in higher ROIs that companies currently generate on their ad spend. Why?
Linking ad-impressions with customers and their purchases at a SKU level
According to McKinsey, it is the the ability to match unique customer IDs and ad impressions to stock-keeping-unit (SKU) sales which is disrupting the entire advertising ecosystem.
This is evidenced by data on effectiveness as collected by McKinsey below.
While McKinsey, BCG, Accenture and Bain have all written extensively about how retail data can be leveraged for advertisements and marketing, a relatively less explored territory is using this data to optimise promotions and availability in stores.
To learn more about how this can be done, email me on email@example.com.
*Paraphrased from a recent report by Accenture, we look at the ways shoppers and consumers have changed in just a few years and how companies and retailers can remain relevant for them.
Consumer and shopper habits remained the same or similar for decades previously. They changed only when there was a major disruption in the market that warranted it or when consumption power moved from one generation to another. This was usually a once in a lifetime occurrence.
A few lifetimes in one
These days, we pack the experiences of a few different lifetimes into one. We wrote about this previously.
According to the article by Accenture, ‘The world today is radically different from the world of two years ago … or even two months ago. A non-stop barrage of external life forces—health, economic, social, environmental, political and beyond—is affecting day-to-day decisions in unavoidable ways.’
We, at salesBeat, argue, this has been the case for a few years now. Ever since social media came into being. Social media has proved to be the both the delight and bane of a brand’s existence. In the initial days of social media, brands were excited by the potential for them to target consumer and shopper groups.
Social media influencing sales & consumer behaviour
While the articles by Accenture, Forbes and by McKinsey, don’t specifically call this out, social media has been influencing what consumers buy and when for sometime now. This has been making it difficult for both brands and retailers to anticipate demand and stocking requirements.
Another layer of complexity that brands did not take into account with social media is what happens when consumers post their negative experiences with the brand on social media. Or when certain (in)actions cast the brand in a poor light in the court of public sentiment. ‘Cancel culture’ has taken over the world of FMCG & retail too as we saw during the early days of the Ukraine/Russia conflict.
In a time and age when everything makes its way online sometime or another, companies need to anticipate not just how their ads perform, but how the brand itself is perceived by consumers.
Changing priorities for consumers
While sustainability was top of mind for most Gen Z & Millennial consumers & shoppers previously, today, with rising inflation sustainability has taken a back seat. Where personalisation and authenticity were important factors in shopper decisions, again, these are playing second fiddle(s) to value for money today.
According to the Accenture report referenced, ‘People are giving themselves permission to be inconsistent. As they evaluate a growing list of things that matter to them, consumers realize they can’t expect perfect choices in every circumstance. As they make decisions, paradoxes become inevitable. And those inconsistencies are being seen as strengths, not weaknesses.’
Market & geopolitical realities
In the last 3 years, not only has social media been a constant in how it has influenced behaviour, but so have covid, unseasonal weather (climate change) and conflicts, in the form or ‘war’ or trade conflicts.
These have completely changed (and continue to change) the way we live, work and shop. However, companies, both retail and brand are still playing catch up driving uncertainties from a supply perspective.
See consumers as a whole
Accenture suggests 3 ways a company can catch up and keep pace:
See customers in their full life
Solve for shifting scenarios
Simplify for relevance
The paper by Accenture resonated with us as we developed salesBeat keeping in mind the consumer and their life. salesBeat isn’t only about how consumers shop or how shoppers behave, but also about how they react to the changes in their life and how this in turn impacts their choices. Also, as Salesbeat tracks the drivers of consumer behaviour and does not assume that the environment remains static, shifting scenarios are accounted for through them.
More companies need to start seeing their consumers as people whose decisions change with the circumstances around them. Currently their personas are developed based on socio economic and demographic factors that can change with changes in the economic environment around them. After all, shoppers who previously used to frequent ‘premium’ supermarket chains are now trading down to cheaper alternatives, including frequenting discounters more often.
For more detail or to read the Accenture paper in full, follow this link. If you’d like to learn more about salesBeat, visit our website or mail me on firstname.lastname@example.org
When a billion people use your skin care & hair care products and your cosmetics range, you need to consider innumerable textures & colours. All these consumers want products that are tailored to their needs. For L’Oreal, delivering personalisation at this level of scale meant thinking about innovation in a different way.
It would no longer mean a one solution to one problem approach. It meant tailoring the solution for individual consumers who experienced the same problem in different ways.
Leveraging industry 4.0 to achieve personalisation at scale
Industry 4.0 includes robotics, IoT, data, blockchain, VR, AR & AI. All these technologies have a place in the modern industrial framework. They can be combined and can be deployed to make manufacturing more productive and efficient.
L’Oréal not only leveraged e-commerce and recommendation engines during the pandemic, but the company also tested and implemented technologies to deliver personalisation at scale.
Le Teint Particulier, under the brand Lancome – a product which allows consumers to have their skin tone ‘measured’ at point of sale. A personalised concealer is then manufactured for them right there in the store. The concealer is a combination of one of each of 8,000 shades, 3 coverage levels, and 3 hydration levels. Even the packaging is personalised with information including the customer’s name. It also includes a reference ID for quick and easy reordering.
Custom D.O.S.E by Skinceuticals, a L’Oreal UK brand. According to L’Oreal’s tech incubator, “Custom D.O.S.E by SkinCeuticals is the first ever automated system that delivers highly concentrated combinations of SkinCeuticals’ most potent ingredients on-the-spot. Addressing the concerns of over 250 skin types, the D.O.S.E technology is first-of-its-kind because it’s able to mix active ingredients into a single serum at the point of service specifically to target the appearance of skin aging issues, like wrinkles, fine lines, and discoloration.”
Agile production lines – by leveraging several industry 4.0 technologies, L’Oreal has been able to manage final product differentiation later in the value chain. Stéphane Lannuzel says, “We can produce the base and then choose the colour for a lipstick right at the very last moment”.
Perso, this gadget personalises and customises make up for your every need. Perso relies on an AI derived diagnosis of a photo (corresponding phone app by BreezoMeter) of a user’s face to highlight imperfections ranging from fine lines to dryness. Perso then creates a final product formulated for the user’s skin, pulling from a library of ingredients.
The results speak for themselves
For the year ended 31 December 2021, L’Oreal’s brands grew by 16.1%, nearly twice that of the global beauty market. Sales was up 15.3% vs prior year, with profits up 29% vs prior year.
The group reported double digit sales growth in H1 2022 at 20.9% increase YoY.
‘FMCG brand managers arefacing an unprecedentedand almost overwhelmingcombination of challenges,which are coming at themfaster than ever.We have labelled this phenomenonthe age of progressive FMCG –political and social tensions, culturewars, gender wars, warnings ofimpending environmental disasters,the obesity crisis and the collapseof trust in traditional media andother forms of authority. It makesfor a darkly dystopian mix.‘ according to a report by FINN, a communications agency.
Despite all this change, FMCG companies continue to homogenise shopper characteristics by generational cohorts for different markets. While this worked well 30 years ago, when each generation had its own signature characteristics, today, this has changed.
Patterns across generations
These days, due to technological advances, there are similarities in shopper behaviour across generations that could be used to categorise shoppers rather than relying on generational similarities.
For example, each generation has people who adopt technology early. Not only that, but Baby boomers needed to undergo a ‘crash course’ in ecommerce and social media during the pandemic for everyday shopping and to keep in touch with their family.
As a result they found that e-commerce is a far more convenient channel for their shopping needs than travelling to stores. This is especially so for baby boomers who maybe mobility constrained & for those baby boomers living in emerging markets, where proximity to stores and traffic are deterrents to shopping at stores.
Another commonality across generations is the impact of price. While only 73% of Baby Boomers considered price a key factor influencing their purchasing decision vs 78% of Gen Z, the delta between the two is not significant.
Pre pandemic studies on FMCG now out of touch with consumers
Most studies on shopping preferences and styles of the different generations were done pre-pandemic. These are now of out of sync with the consumers of today, and that includes baby boomers and Gen Xers.
A recent 2022 study by Hubspot on how each generation shops shows more similarities that differences between many of the generations. While 50% of Gen Z shoppers said that a brand’s ESG initiatives are important to them, 35% of Baby Boomers also said the same, with Millennials at 41%.
While only 25% of Baby Boomers say that ESG initiatives by brands influence their choices, 71% of those who agree want companies to take action on Climate change.
The key takeaway is that consumers across generations are concerned about similar things. The only difference is the percentage of each generational cohort.
Today, we live with spiralling inflation, geopolitical conflicts and the ever present threat of another pandemic. These uncertainties are impacting consumption choices yet again.
Perhaps it is time to regroup consumers by how they discover products & shop and what features/benefits influence their choices rather than relying on generational similarities to target consumers.
The ‘You’re not you when you’re hungry’ marketing campaign, by the Snickers team at Mars, celebrates its 12th anniversary this year. Since its launch in 2010, the campaign has won several awards including Cannes Lions, The One Show, D&AD and the Emmys. And as the campaign premise is universal & timeless, it hasn’t needed much change(through time or for different markets) either. But what catalysed the Mars team to develop & launch the ‘You’re not you when you’re hungry’ campaign?
Snickers as a brand had become overly targeted and focussed on a subsection of the male population – young men. The brand used ‘bloke humour’ to focus exclusively on this consumer segment. As a result, they were unable to grow beyond a certain point. However, contrary to their focus, the Mars team wanted Snickers to be a universally loved brand for men.
The team decided to identify a universal human truth that worked across markers and time. This would help them build a global brand. Through customer interviews and research, they discovered that men seek acceptance and membership of the “male pack‟. They found out that when they’re hungry, they’re not themselves which threatens their place in the pack. This insight was consistent with the brand’s heritage, whilst also being relevant to a much broader audience.
The resulting brand idea was, “A proper, nut-filled Snickers sorts out hunger and restores your role in the pack”.
The solution – You’re not you when you’re hungry campaign
And so, the ‘You’re not you when you’re hungry’ campaign was born. The team decided to implement the campaign universally, tweaked for local culture.
The US was critical for success as the country was Snickers’ number-one market. The team launched the campaign during the 2010 Super Bowl Game , featuring US actress Betty White. The ad topped the Super Bowl favourite ad poll and generated 91 days of media coverage worth $28.6m. Betty White appeared on TV shows such as The Jay Leno Show and Oprah Winfrey Show and the ad was played during each appearance.
In Australia, “Hungerithm” monitored the mood of the internet and offered discounts from 7-Eleven stores when the internet is “hungry”
In UK, the team leveraged timely tweets by celebrities that may be attributed to hunger. Once such example relates to Top Gear presenter, Jeremy Clarkson’s infamous dust-up with a BBC producer that generated 5,000 retweets and 390,000 media impressions
Prior to launch of this campaign the Snickers brand growth lagged behind its key competitor and also the category.
By leveraging their insights into their target consumer group and tapping into a universal ‘truth’ to create a compelling campaign, the Snickers team at Mars was able to grow the brand by 15.9%. As a result, Snickers is significantly ahead of its closest competitor and the category itself.
We are only just past halfway through 2022. However, this year has already been extraordinary in many respects, one of which is the record breaking number of heatwaves we’ve seen so far across the world. For those interested, this Wikipedia page lists all the heatwaves in 2022 to date.
Impact on sales
A comparison of sales in the 12 weeks to 10 July 2022, to sales in the 12 weeks to 11 July 2021, shows mixed performance across grocery stores in the UK, with discounters gaining the most, due to consumers switching to them to minimise their grocery spend in light of soaring inflation.
However, despite current inflation rates, BRC-KPMG retail sales monitor for July 2022 showed that total sales increased by 2.3% during the month, bringing to an end three consecutive months of decline.
Ice cream, beer, water & barbecue ingredients sales benefitted the most from the heatwave, while sales of barbecue grills themselves rocketed during this time despite fire hazard warnings. Outdoor furniture sales also benefitted, as more people planned to spend time outdoors in August. Clothing retailers also benefitted during this time.
Gelato & ice cream brands and vendors benefitted all through Europe, as people consumed them in a bid to cool down.
US grocery sales, in the meantime, also benefitted from this, albeit in a different way. Online grocery sales saw the most increase at 17% vs prior year in July, as more consumers sought to avoid travelling outside during this time.
On the overall, US supermarkets benefitted from increased demand during this period, with Albertsons companies benefitting the least at 10% growth vs prior year.
However, some delayed impacts of these heatwaves are yet to come. Typically, for regions that have high humidity levels, heatwaves bring with them increased demand at a later date for anti mould and anti fungal products. Also, shampoo, conditioner, anti frizz hair products and shower gel sales increase following heatwaves as people use these more frequently during heatwaves than they usually do.
So how can you best prepare your store for these heatwaves?
Keep an eye on weather forecasts by reputable agencies. When a heatwave, storm, cold wave or any unusual weather event is expected, look at temperatures expected, humidity levels etc and consider how these, in combination, will impact human behaviour.
For instance, a heatwave is declared in the UK anytime the temperature rises above 25℃ or 26℃. When temperatures are between 26℃ & 32℃, people plan to and are likely to go out, and enjoy the warm weather outdoors. So sales of certain products like beer, wine, water, picnic essentials, barbecue ingredients etc are all likely to increase a few days ahead of these heatwaves. Sales of these products continue to stay elevated during the heatwave as some consumers maybe more impulse led than others. During this period, depending on humidity levels, sales of anti frizz hair products and brands may also increase.
However, when temperatures increase beyond 35℃, sales of these products may not increase as much, as some people may prefer staying indoors where it is cooler. Also, impulse sales will not be as high at stores, and may move to quick commerce channels, as more people want to avoid the heat outside.
When a heatwave is expected, looking at humidity and dust levels is important when considering what and how much to reorder as they impact demand for shampoos, conditioners, moisturisers, home cleaning products and laundry products.
Sound complex? That is because, it is
Impact of changes in weather can be difficult to predict when looking at things in isolation. So consider not just weather forecasts, but also the demographics of consumers around your store location. People from different countries behave differently when it comes to weather. So if your store is located in a cosmopolitan area, consider how people from different backgrounds may react differently to these changes.
If you’d like to learn more about how to prepare for unexpected weather events and maximise sales during these times, email me on email@example.com
During times like these, i.e economic recession combined with decreasing disposable income, companies often turn to promotions as a means of increasing revenue. However, as more companies turn to promotions and the number of promotions in stores increase, consumers begin to factor in these lower prices.
They get so used to it that they become reluctant to purchase products at the regular shelf price. This also results in margin dilution. However, promotions can also attract new customers, boost sales volumes and generate awareness, if planned and executed effectively.
‘If planned and executed properly’ is key, as according to a paper by promotion optimisation institute, 72% of promotions do not break even. Not only do 72% of promotions not break even, but 22% of them also perform worse than if no promotion had been implemented at all.
Lets look at why
Most promotions run year after year, with only slight changes, if any, to the promotional mechanics. Given the fast changing times we live in, it can be dangerous to assume that the same promotion will be effective year after year in the same store.
This assumes that socio economic factors and the demographics around these stores do not change and competitors will react the same way as they did previously. And we all know that this is rarely the case. We have all changed jobs, houses, where we live, the restaurants we frequent, the brands we buy, when and where we shop and in general, our life routine.
So why do we assume everyone else remains the same when we analyse promotions for effectiveness? I have been a victim of this thinking as a commercial finance person, early in my career, too. We assume the same conditions and uplifts as the year before when assessing promotional effectiveness for future periods. Also, we assume that all consumers react the same way regardless of the neighbourhood and their socio-economic make up. Again, this is rarely the case.
Example, a 50% off promotion for a consumer staple generates a lower sales uplift when implemented in an affluent neighbourhood than in others. This is either because consumers would have bought the product without the promotion anyway or because a lower price is unlikely to motivate them to switch from competition. So it is key to understand the demographic and socioeconomic make up of shoppers at each store or each cluster of stores (stores can be categorised for socio economic make up) when promotions are evaluated. As this changes over time, it is important to re-visit the calculations and assumptions each time a promotion is considered.
Store level data needs to be considered
Companies should review store level data to understand the best promotions to implement.
Other factors such as store level weather forecasts, social media sentiment/mentions, traffic data and so on, influence the effectiveness of these promotions. So take these factors into account too, to evaluate promotional effectiveness. For example, the overall revenue uplift from implementing a promotion for a beer brand when it’s raining will be far lower than when implemented when its warm, sunny and dry. Weather conditions around each store may vary and so need to be evaluated individually or in clusters. In fact, in this case, consumers are far more likely to stock up for a warm sunny day anyway, which means you lose a full price sale in the future.
The promotional uplift often results in fewer sales in the days that follow. Finance and sales teams at companies often consider cannibalisation of other SKUs that the company sells, during these promotional periods. But they rarely consider how the promotion impacts full price sales of the same product in the future.
Timing of promotions is another important variable to consider. Most companies know they should run promotions for special occasions like Black Friday or Back to School month. But in some countries, pay week is a very important time. If your target consumers are cash-constrained, then receiving a pay check means it is “shopping week”. That’s when promotions make a big impact.
Evaluate promotions over a longer period than just the promotional period
When looking at promotional uplifts and incremental value generated, look at both the specific promotional period and the impact across the next 6 months. Also, the incremental volume from these promotions should ideally come from competition or through increasing the category volumes.
If the aim is to reduce stock levels or deplete stocks that are close to expiry, you may not need to look at this. However, it is still important to know the impact of the promotion implemented to understand what you can expect in the next few weeks and months.
In the next few months, an increasing number of brands and supermarkets will be rolling out promotions on their SKUs to meet customer expectations of value. When evaluating promotions, check to see which quadrant they fall into.
Stay away from the red quadrant! If you are seeking to drive volumes to get rid of excess stock or stock close to expiry, the orange quadrant is the place to be as promotional initiatives in this space drive volumes at the expense of profitability. However, if you are looking to increase value for the business, the right hand side is the place to be (the two green quadrants for those who are right/left hand side challenged, like I am!).
It goes without saying that the top right hand corner is the place to be and is home to the winning promotional mechanic(s).
If you have any questions or comments on how promotional initiatives should be evaluated or would like to learn how store level evaluations can be done at scale, email me on firstname.lastname@example.org.
Climate change in the form of extreme heat, hurricanes, flooding etc. presents an inherent risk to FMCG companies. It disrupts raw material supply and logistics (roads buckling, flights unable to take off and ships tossed about), resulting in price increases.
British Retail Consortium and NAACDs published studies that establish that every one degree change in temperature results in a 1% fluctuation of sales. However, companies and retailers are still not prepared for this.
The recent heatwaves in Europe and the resulting out of stocks and overstocking of certain SKUs at stores, are proof that inventory management technology has not yet caught up with the problems of today. So how exactly does climate change impact demand?
Obvious examples of climate change impacting sales
According to Majestic Wine in the UK, during this last heatwave in July, Rosé outsold white and red wines by more than 172,000 bottles in that week alone. One bottle of Rosé wine was sold every 12 seconds!
During cold waves, pasta, pasta sauces, soups, baking ingredients, red wine, spirits, lotions for dry skin, flu medications etc experience increased demand.
Regions at risk of experiencing tornadoes, cyclones, hurricanes or storms, or where there are flood warnings in place, are likely to see increased demand for basic necessities like tinned & frozen food (incl. vegetables), packaged soup & pasta mixes, toilet paper, soaps, shampoo and household cleaning products.
Some not so obvious ones
However, there are a few not so obvious SKUs that experience increased demand as a result of unseasonal weather. The impact is not immediately seen and so maybe masked by other factors.
For example when both temperatures and humidity levels are high, there is a delayed increase in demand for anti mould & anti fungal products, shampoos, body soaps, conditioners, anti frizz hair products etc as consumers use more of these up at home during this time.
Another not so obvious one is a (delayed) increase in demand for allergy medications following a period when the weather is hot and humidity levels are low. Pollen count and dust levels impact demand of this product too.
Planning for unseasonal temperatures and weather events
While inventory teams and FMCG sales people may be making plans for barbecues and outdoor picnics when these heatwaves hit, several times, they do not translate this into their work lives.
And, when they do, they need to make guesstimates of the right levels of stock of these products at stores. This is because their demand planning system is unlikely to have taken this heatwave (or cold wave/other weather event) into account.
However, you know what you do as a consumer. It is not a stretch of the imagination to assume others are likely to do the same. Use this knowledge to help prepare your supermarket/FMCG company to ensure there is enough stock of impacted SKU to meet demand/delayed demand.
Follow the weather and ensure you do not order too much of one SKU assuming seasonality still holds. An example is ordering a container load of red wine in December assuming robust Christmas sales, when warmer, unseasonal temperatures are expected for Christmas.
According to a recent report by Deloitte on the state of the Consumer Goods industry and key imperatives for 2022, increasing transparency helping in regaining consumer trust was top of the list for several companies. Trust and transparency are intrinsically linked. Consumer goods brands that are not open and transparent are at risk of losing consumers’ trust, according to nine in ten executives that Deloitte surveyed. According to the report, most consumer goods companies are making an investment to increase the level of transparency for consumers and other stakeholders.
Increased transparency requires meaningful insights to be derived from raw data
For consumer goods companies to be transparent to all stakeholders and consumers, data needs to be sensed and captured.
The data collected should be shared and processed with other data sources to derive meaningful insights. Sharing an abundance of raw uncleaned data is likely to result in the opposite of what these companies are trying to achieve.
According to Deloitte’s report, intelligence, artificial or otherwise, is needed to do this effectively.
This includes supply chain transparency
55% of the execs that Deloitte interviewed for this report, cited out of stocks of products as a key reason for losing consumer trust. Another 48% cited stock outs of certain flavours/varieties/pack sizes of the brand as a key reason for losing consumer trust. Out of stocks at stores cannot be solved without transparency across the product value chain. Furthermore, it is critical that retailers and consumer goods brand owners work with the same demand/sales predictions to collaboratively ensure that there is enough stock produced, bought and stocked at stores, to meet demand.
Increased flexibility in stocking
Increased supply chain transparency enables consumer goods brand owners as well as retailers to be more flexible with their stock keeping policies. Most companies these days follow a just in time stock policy. However, when there are production related constraints like raw material supply issues or shortages or labour constrains at manufacturing sites, it enables consumer goods companies to make an informed decision to keep more stock(raw materials and finished products) when possible for future contingencies.
If the constraints are on the logistics side, it enables retailers to make an informed decision to stock more in their warehouses to ensure they do not run out of stock.
Speaking of stakeholders, consumer goods companies need to regain consumer trust by increasing supply chain transparency. By increasing supply chain transparency and ensuring availability of stock at stores, consumer goods brands and retailers can regain the trust they lost with consumers who experienced availability issues at stores.
What’s more, it gives consumers confidence in any sustainability claims the brand/retailer makes. According to the execs interviewed by Deloitte, 84% of them feel that consumers lose trust when brands don’t meet consumer expectations on ESG initiatives.