Consumer Staples

<p style="text-align: justify;">Due to the volatility of markets and thus also consumer demands, retailers are increasingly adopting an agile approach to their assortment optimization efforts.&nbsp;</p><p style="text-align: justify;">Fast-moving consumer goods (FMCG) companies must, therefore, not only understand the individual category management strategy of each retailer but also develop strategies to increase the speed and quality of their product development processes.&nbsp;</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 14pt;">Customer Centricity is Key</span></h2><p style="text-align: justify;">FMCG players must work closely with retailers to successfully develop products according to that and understand their respective category management strategies, which might differ from other retailers. This means understanding the goals and objectives of the retailer's category management strategy.&nbsp;</p><p style="text-align: justify;">By doing so, FMCG players can develop products that are innovative and responsive to changing consumer needs while also meeting the requirements of the retailer's category management strategy.&nbsp;</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 14pt;">Data Analytics to Prioritize&nbsp;</span></h2><p style="text-align: justify;">One key aspect of understanding retailers' agile category management strategy is recognizing the importance of data analytics.&nbsp;</p><p style="text-align: justify;">Retailers increasingly use data analytics to make informed decisions about product offerings and category management strategies. FMCG players must therefore invest in data analytics capabilities to effectively collaborate with retailers and provide valuable insights into consumer behavior.&nbsp;</p><p style="text-align: justify;">This effectively supports their product development and sales strategies. But this might also involve investing not only in technology and data analytics but also in building strong partnerships with retailers and building a talented and diverse team equipped to navigate the challenges of the fast-moving retail environment.</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;"><span style="font-size: 10pt;"><em>This article was contributed by our expert <a href="https://www.linkedin.com/in/felixblock/" target="_blank" rel="noopener">Felix Block</a></em></span>&nbsp;<br />&nbsp;</p><p style="text-align: justify;">&nbsp;</p><h3 style="text-align: justify;"><span style="font-size: 18pt;">Frequently Asked Questions Answered by Felix Block</span></h3><h3 style="text-align: justify;">&nbsp;</h3><h2 style="text-align: justify;"><span style="font-size: 12pt;">1. What role does sustainability play in product development and sales for FMCG players? </span></h2><p style="text-align: justify;">Sustainability and social responsibility are increasingly important considerations for retailers and consumers. The key is to match these requirements and to consider the price and quality ratios that consumers value to ensure that they are effectively marketed to consumers.</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">2. How can FMCG players use collaborative planning processes to align their strategies with retailers?</span></h2><p style="text-align: justify;">FMCG players can use collaborative planning processes to align their strategies with retailers by engaging in joint planning sessions, sharing data and insights, and soliciting stakeholder feedback.</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">3. Are there differences in collaboration between suppliers and retailers in the food and non-food industries?</span></h2><p style="text-align: justify;">One key aspect is that the product lifecycle in the food industry is generally shorter than in the non-food industry, which further increases the need and impact of speed and intensity of collaboration between suppliers and retailers.</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p>