Playing Catch-Up: How to Partner With the Retailer of the Future

 In Australia, International, NewZealand
There’s no denying that the balance of power in the consumer industry has tilted. Retailers have the advantage over consumer-packaged-goods (CPG) manufacturers—and retail buyers are deftly using their leverage at the negotiating table. Retail buyers are more sophisticated, more analytical, and more demanding than ever. Consider this: each of the top ten US retailers employs dozens of big data professionals who provide buyers with valuable insights. The same retailers have also hired more than 70 executives from European retail companies, known for having more aggressive negotiation styles than their American counterparts. In this increasingly adversarial environment, what’s a CPG key-account manager to do?
These changes in the retailer-manufacturer dynamic are the result of three trends that have been playing out in the US consumer industry: the steady rise of newer retail channels including hard discount and e-commerce, stagnant growth among the largest CPG brands, and burgeoning capabilities in big data and advanced analytics. The trends have been evident for a few years, yet in our experience the majority of CPG sales leaders are still largely doing things the way they always have. McKinsey & Company – Read more…

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