Dominant Retailers Have Created Opportunity
Following a period of strength in the mid to late 1900s, the dominance of big box retailers has hurt brand manufacturers on
two levels:
Marketing & Messaging
With their assortment consisting of select national brands and private label products, mass market retailers have tended to
rely on price as the primary differentiator between brands and products. Gone are the days of knowledgeable employees
who knew the attributes of the brands and how to match those branded products to customer needs.
Product Distribution
To drive costs down and be able offer the lowest possible prices, retailers and manufacturers have focused on driving
assortment and supply chain efficiencies. Truckload quantities efficiently delivered across stores have driven lower prices,
but at a cost to brands, certain retail segments and consumers.
As a result of these trends, consumers do not have easy access to the brands they want, when they want them.
The Consumer is Now in Control
Emerging technologies and distribution networks give consumers better access to products and messages, and give
manufacturers better access to deliver relevant advertising and products to consumers. With these manufacturer and
consumer “forces” pushing on both sides, there is a great opportunity to open and monetize the channel between them.
Consumers will experience and buy products anytime, anyhow and anywhere. And the enabling companies will reap
substantial rewards.
w h y n o w ?
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