New Strategies for a Shifting Retail Landscape

New Strategies for a Shifting Retail Landscape

Retail Tech Insights | Friday, November 11, 2022

Consumer goods categories are experiencing a seismic shift in channel growth as online sales vastly outpace in-store growth. Therefore, retail marketers plan for the upcoming year in alignment with the shifting retail landscape.

FREMONT, CA: With online sales significantly outpacing in-store growth, consumer goods categories observe a seismic shift in channel growth. As more pre-pandemic activities resume, businesses trying to predict the new normal will have plans for the upcoming year. Companies delivering an optimised experience across both digital and physical areas will lead in the consumer packaged goods (CPG) future. Emerging omnichannel trends disclose opportunities to compete with other online players by leveraging omnichannel insights.

The path to purchase has become significantly more complicated. The rise of omnichannel has revealed new worlds for businesses that need to be managed through omni lens. As businesses plan for 2023, they should figure out the new expectations. Consumers’ needs, priorities, and shopping habits have drastically transformed and continue to change. Past forecasting and measurement methods fall short, causing expensive inventory surpluses or shortages.

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CPG businesses should plan with an omnichannel mindset to stay relevant, measure behaviour allowing them to anticipate future changes, and capitalise on emerging trends. Beyond consumer behaviour, omnichannel insights illuminate the reason, empowering businesses to answer critical strategic questions about online sales growth, the difference between online and in-store purchases, the shift from in-store to online, buyer demographics, and emerging trends in a category.

Consumers purchasing goods in-store and online are many compared to busters shopping exclusively in-store. Only a few people shop exclusively online. With this, omnichannel has become a permanent and substantial fixture of consumer behaviour. Shoppers anticipate more changes to their spending decision with the industry experiencing massive transformation. Globally, 30 per cent of consumers indicated that they have entirely different priorities impacting their purchase behaviour, and many re-evaluate their priorities.

In understanding whether customers leak to competitors, omnichannel consumer panel data revealed that few companies’ performances were just half a per cent below category performance, indicating that leakage to competitors was not a significant or immediate problem to address. Manufacturers’ investment of time and resources can be better allocated elsewhere.

Some manufacturers believe they will be unable to compete in pure online or mass retailer dot coms. However, a demographic study helps brands determine if they can perform well in such channels. Many external and internal factors influence brands’ decisions about which attributes to emphasise. Omnichannel insights help them make informed decisions that align with their goals, strategies, and desired outcomes.

The omnichannel ecosystem is increasingly difficult to navigate, with numerous challenges standing between CPG companies and consumers’ new expectations. Succeeding in this evolving environment requires using tools developed to measure omnishopper behaviour, offering a comprehensive customer view across in-store and online channels for a deeper understanding.

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