A complex and rapidly changing commercial world
We are living in a complex and rapidly changing world. Whilst the dynamics are different, the trends are similar irrespective of the level of market development. Consumers are more discerning, shoppers are demanding better value, it is increasingly difficult for retailers to grow profitably and suppliers are struggling to keep pace with change.
In many markets around the world consumer confidence remains low driven by extended economic, political and social uncertainties. The environment is a bigger concern and consumers expect companies to proactively participate in creating a better future. Shoppers are better informed, expect personalised service and are quick to switch from their usual place of shop when they feel let down. Channels are blurring as retailers endeavour to differentiate, drive loyalty and increase customer spend. Just look at Metro a top 5 global retailer which is now operating across a number of different channels: leading with the Metro Cash and Carry format, followed by the Real hypermarkets, Media Markt and Saturn Electronic superstores, Galeria Kaufhof department stores and Redcon an e-commerce pure play format.
All of this change is further fuelled by rapid innovation in mobile digital technology development which is transforming the volume and speed of data transfer and access to information. Indeed smartphone penetration within the world’s top19 digital markets is forecast to double by 2015.
Speed, agility and hooked up thinking are fundamental to supplier success. Those companies facing into these challenges will be the winners of tomorrow. So what must the winners do.
Be a winner of tomorrow.
The Quantic Group believe that there are three factors that suppliers must get right if they want to be the winners of the future.
1. Be able to connect with the “always on” consumer and shopper in a relevant way. Social media and digital marketing is a core competency that every company must master. Joined up communication strategies delivering the right messages at the right time are fundamental to build consumer trust, sales and long term brand loyalty.
2. Recognise that retailers are a total company and not just sales responsibility. Break down those functional silos, create multi-functional work teams and single-mindedly focus total team effort to deliver exceptional customer service and flawless execution. Build awareness of customer needs, ensure joined up metrics, and unleash the power of the whole company to unlock the gatekeeper to the shopper’s wallet.
3. Suppliers have traditionally been the brand experts. In recent times, retailers have not only caught up, but in many instances overtaken their suppliers to become the consumer champion. Work hand in hand with retailers, leverage brand strengths, pool expertise and resources, openly share information and together build integrated strategies for greater efficiency and impact.
Leaders must take charge now
We live in a different world today. The market has changed. The past is past; there is no time to waste. Leadership must step up to take charge of the future. The window of opportunity is small, take the initiative and lead from the front – now. You will not get a second chance!
Written by Jon Norbury
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