Brands’ unique approach to value exchange-based marketing may chart the way forward
As this column is primarily focused on the world of retail, we tend to look at retail and CPG as a binary, with different rules governing each. In the past year, however, the lines between these two worlds have been blurring.
Retailers, for their part, have been adopting some of the behaviors of CPGs; particularly, they’ve been launching more private label brands as a means of not only coping with disruptions to the supply chain, but also siphoning the business of price-conscious customers off of established CPG brands. CPG brands have also been evolving over the past year, adopting more direct-to-consumer (DTC) and consumer-forward commerce models to cope with a loss of business during brick-and-mortar store closures.
Where CPGs are dipping their toes in the world of retail presents a unique learning opportunity for retailers involving better promotion, loyalty, and consumer data strategies that may position them more advantageously for the future. While there’s been resistance for retailers to see anything of value in the CPG-consumer relationship in the past, their actions in this current moment offer a fresh perspective that can be insightful if retailers take it to heart.
Retailers Have Long Relied on CPGs
Retailers would never admit to taking any plays out of the CPG…