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Retailers can be our biggest enemy (as it’s evident with the current environment of private labels gaining shelf space over brand names). Or, they can be our biggest friend. At the end of the day, our products get sold off their shelves. Therefore, I have always had a healthy fascination toward the retail industry.

The other day, I visited a local Dillion’s, a Kroger store brand, and was amazed at the level of localization. This particular store was not in Texas, or San Diego. It was in Kansas, but in a Latino neighborhood. I thought I stepped into Mexico in the product assortment and the way the store was merchandised. It shows how sophisticated the art of retailing has become. In fact, today’s retailers have very comprehensive and important information about our consumers at each of their stores. This is why joint business planning has increased in importance. Manufacturers have long conducted extensive consumer researches to understand the consumers. Retailers now are empowered with real time information. Together, we can bring to our consumer exactly the product they want at exactly where they’re looking for it.

I am fortunate to live in a testing ground, somewhat, for retailers. It’s a great place to be for someone who’s fascinated about the industry. Therefore, in the next few weeks, I’d like to bring to you what I see on the transformation that had been unfolding in the last few years on groceries.

Related Posts: Groceries Fighting Back

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I’ve noticed that recently there is more retailers setting up specialized stores within their stores. These specialized inner stores have their own entirely different personalities aimed to attract different sets of consumers.

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Recently, I believe I was at Macy’s. The “ThISit” store not only has different selections, different displays, different color schemes… it even plays different music.

I wonder at the end of the day what this means. I believe it’s all in the shopping experience. If my specific brands are in a specifically designated area, it makes it easier for me to find. It’s like shopping at a boutique, but knowing that I have the resources of the big store backing this boutique. It may mean easier returns. It may mean lower prices. It may mean convenience. It is really the best of the two worlds!

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Now, as a brand, if you could get into these specialized stores where the retailer is trying to build a loyal following… you’re improving your relationship with the retailer as a business partner helping to grow each other’s mutual business!

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Today I visited a retailer’s concept store. It’s really cool to get a sneak peak of what is may be the future.

But this really puts in focus the real trick to success…

Alignment.

Manufacturers and retailers really need to work together in order for these to work. If a manufacturer can have the latest and greatest widgets, but the retailer lacks the vision to bring that to life, all is lost. Likewise, the retailer can be on the cutting edge of a trend, but unless you have the product to support it, the trend would never amount to much in sales.

Finally, alignment with the consumers.

The consumers at the end of the day dictate all. What they want is the only thing that matters. Their vision of what they expect to find in a store is the only vision that matters.

Now, both manufacturers and retailers have insights on this. Sometimes they are the same, sometimes they differ slightly. If they are the same, perfect. If they differ, perhaps they need to consider the relationship fit. Perhaps the two are just playing to different strengths and answering to different consumer needs.

At the end of the day, they all must come together and find that golden triangle where the manufacturer wins, the retailer wins, and ultimately the consumer win.

PHOTO CREDIT: Kid In Aisle, originally uploaded by captscurvy.

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