Seeds of their own destruction.

What will be the continuing impact of the development of  housebrands by retailers, and the current heightened value awareness of consumers? Most FMCG suppliers lose sleep over the retailers undermining their profitability by hogging shelf space with far cheaper imitations of their brands, brought to market overnight  without much concern about the long term health and development of the category, but delivering short term profitability to them at the expense of their suppliers.

This  apparent duplicity, retailers demanding innovation and category building activity from their suppliers, whilst undermining their ability and willingness to invest has to have its limits. Clearly, the old mass market model of branding is  over, but what has replaced it?

Increasingly I see the evolution of focused brands and retailers serving the more niche markets, and segments of larger markets where something different is being delivered to customers. Retailers are enabling a new breed of supplier with deep category expertise to emerge at the expense of the older mass market model, and they are in turn fuelling the growth of specialist retailers.

 

About strategyaudit

StrategyAudit is a boutique strategy and marketing consultancy concentrating on the challenges of the medium sized manufacturing businesses that make up the backbone of our economy. The particular focus is on their strategic and marketing development. as well as the business and operational efficiency improvements necessary for day to day commercial survival. We not only give advice, we go down "into the weeds" to ensure and enable implementation.
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