SHIF TING - Kantar Retail

EXECUTIVE SUMMARY
ACTION STEPS
IN RESPONSE TO
SHIFTING SANDS
Volatility will increasingly be a feature of the market in China as growth slows and competition for the
consumers’ wallet intensifies between categories, channels, individual retailers, and manufacturers.
Growth through productivity, particularly in terms of sales per store, will become as important as
growth though new store expansion. In this context, we see significant shifts in what is important to
retailers and manufacturers as they adapt to a changing landscape.
Retailers place a higher premium on manufacturers that exhibit clear strategies for category
growth with shopper marketing program support, the sum of which produces profitable growth.
Manufacturers place a premium on retailers that have set clear strategies to guide them through
volatility, that can execute consistently, and that are likely to be long term winners.
With shifting sands, retailers and manufacturers will need to build new capabilities. Retailers place
high importance on manufacturers with the best sales force/customer teams and manufacturers
place high importance on retailers that are easy to do business with, leaving little doubt that
capabilities are central to both parties.
Action Steps for Shifting Sands
1
2
3
4
Increased collaboration around category growth
Focus on driving sales per store
Shopper marketing – working together to change shopper behaviour
New capabilities
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® 2012 Kantar Retail