Opdateret: 13. apr. 2019
When brands are becoming retailers – and stores are becoming brand channels we need a new set of future KPI's of the store.
Private- label products continue to gain share across all major geographies. And there is a clear image change going on. In earlier years private label brands were often seen as cheaper and lower quality alternatives to multinational brands. Many customers now think that private labels are just as good, and sometimes even better than the traditional branded alternative. Just think of Trader Joe. And in Denmark we have Irma whose coffee many Danes couldn’t live without.
While supermarkets are busy integrating backwards in the value chain becoming product brands, product brands now are a natural part of their brand marketing integrating forward becoming retailers.
Or are they?
Be a Master Storyteller
Even though it is possible to buy an ice-cream in a Magnum Pleasure Store, get a tasty water at Hint, or shop M&M’s in the M&M Store and Nivea at the Nivea Store., selling goods is far from the primary goal with the forward integration for these traditional FMCG’s. Getting closer to the customer, staging the brand in a controlled physical environment aligning with the values and visuals of the brands seems to be key.
As a reaction to the growth and popularity of private label brands – FMCG brands are now becoming Master Storytellers, using the retail channel as the stage where their brands can play the main role, getting closer to the customers through unique and memorable brand experiences.
How should your brand look, smell, and feel?
Studies* indicate that flagship stores well-known from luxury and high-involvement products, now being adopted by FMCG Brands can actually enhance brand-experience, cognition and relationship with the consumer. And generate increasing sale in other and more traditional channels*. Therefore it seems to be a future strategic safe road to follow.
We are looking forward to seeing more FMCG Brands coming to life using the store as a brand channel. And what a great exercise for any product brand, to ask themself, "How should my brand look, smell, and feel?"
But when retail channels become a brand channel.what should be the future KPI’s of the store?
Please let me know if you have any input on this?
*Flagship stores for FMCG national brands: Do they improve brand cognitions and create favorable consumer reactions? Tim Nierobisch⁎, Waldemar Toporowski, Till Dannewald, Steffen Jahn, Journal of retailing and consumer studies 2017.