Customer-centric retailing â Now you know what ... - Roland Berger

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RETAIL CONSUMER TRENDSConsumers' needs are becoming increasingly diversifiedRetailers need new formats to keep upTHE DEMOGRAPHY AND SOCIAL STRATA OF ALL EURO-PEAN INDUSTRIALIZED NATIONS ARE SHIFTING SUB-STANTIALLY, LEADING TO FUNDAMENTAL CHANGES INTHEIR NEEDS AND PURCHASING PATTERNS. THIS MEANSTHAT IN JUST A FEW YEARS' TIME, MANY RETAILERSWILL NO LONGER RECOGNIZE THEIR OWN CUSTOMERS,BECAUSE THEY WILL HAVE CHANGED SO MUCH – LIKESOCIETY AS A WHOLE.They are not only older, they're also more aware of theenvironment and their health. They live in smaller andsmaller households, want shopping to be easy – avoidingtraveling long distances as much as possible – and areincreasingly interested in products from their own region.They are more individualistic in their lives and purchasinghabits than any generation before them. They want to livehealthily and sustainably, and this doesn't only apply tothe LOHAS (lifestyle of health and sustainability) targetgroup.Others have to budget for every cent and watch pricesmeticulously. Both customer groups are interested ingetting good value for money. And that often also meansthat they prefer to pay a little more for good quality. Themarket is thus becoming increasingly polarized. Althoughmidmarket segments are certainly shrinking, they won'tdisappear completely (despite predictions to the contrary).Instead, we will see increasingly "hybrid" consumptionpatterns with a boom not only in the branded andpremium segments, but also at the lower-priced endof the market.Traditional market research is finding it increasingly difficultto classify these people (and many others) in traditionalsociodemographic terms. Moreover, consumers canno longer be reached as they could in the past due to thefragmentation of the media landscape. Although peopleare watching more television, ratings are falling in individualformats. In the digital future, consumers will be able4
Retail consumer trendsto choose freely what they watch and when. Above all,they will be able to fast-forward the advertising if it annoysthem. This means that a company will have to broadcastmany more commercials and advertisements to reachthe same number of customers, and not many can affordto do that.If customers change their attitudes and behavior patternsas radically as this, it will affect retailers more than otherindustries. In saturated markets, the only way to grow is tosqueeze out your competitors, absorb them, or be innovative.Knowing your customers will be a decisive competitiveadvantage in this context.More and more retailers will use this knowledge of theircustomers better in future and will serve consumers'wishes with great precision. The aim here is to make eachretail format more attractive to the customer groups ittargets – offering the right range at the right price in theright place. This customer-centric retailing will put customerrelations on a completely new footing.But not only retailers' relationship with their customers willchange; relations with suppliers will also be transformed.Suppliers – especially "category captains" – currently havea considerable advantage over retailers when it comes totheir knowledge of customers. With CCR, retailers can turnthis deficit into a competitive advantage. They can pick updetailed information – for example on how product launchesare received by customers, and what effect marketingprograms and pricing strategies have – not on all customers,but broken down into individual customer groups.Retailers will be able to greatly strengthen their positionin this way.More about this on the following pages.5
Page 1 and 2: CONSUMER GOODS & RETAILConsumer Goo
Page 3: Contents3 EditorialJochen Hiemeyer
Page 8 and 9: CUSTOMER-CENTRIC RETAILING2. Create
Page 10 and 11: CUSTOMER-CENTRIC RETAILINGCCR in pr
Page 12 and 13: CUSTOMER-CENTRIC RETAILINGHOW CUSTO
Page 14 and 15: PROF. NITIN SANGHAVIINTERVIEWThe ph
Page 16 and 17: WHAT DO YOU THINK?How leading retai
Page 18 and 19: Darko Knez,member of themanagement
Page 20: AmsterdamBahrainBarcelonaBeijingBer

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Customer-centric retailing â Now you know what ... - Roland Berger