RECOMMENDATIONS FOR MANUFACTURES AND RETAILERS

Identify opportunities by region, mitigate risks in supply chain, optimise product mix, availability of data, are some of the recommendations.

Despite removal of pandemic-related restrictions and social distancing, Internet sales continues to grow. Here are five recommendations for manufacturers and retailers in 2023.

Different regions are facing varying levels of inflation, supply chain problems, and declining consumer confidence. In particular, many emerging markets are currently less affected by certain macro trends, with much lower penetration of consumer and durable goods. As a result, focus on developing these markets may create new growth opportunities.

Mitigate Risks In Supply Chain

Key Takeaways

l Brands need to unlock new opportunities from emerging markets and optimise the supply chain to ensure availability in the right segments.

l They would also need to boost sales performance through sustainability and retail innovation.

l Brands and marketers need to craft powerful brand positioning that sets them apart and enables long-term growth.

By reassessing dependence on volatile manufacturing markets, brands and retailers can offset supply chain disruptions. This could be the development of alternative supply partnerships to spread risk, or use of tools to streamline inventory management.

Product Pipelines Towards Opportunity

While the cost-of-living crisis may dampen consumer confidence, there are still areas of growing consumer technology and durables value that brands and retailers can focus on in their portfolios. This includes products that help save money as well as superior performing products with innovative features that add value to consumers in terms of comfort, performance or energy savings.

Optimise Product Mix

Products that offer added features and functionalities have seen value growth, despite overall deceleration. Brands and retailers should prioritise these growth segments and seek out alternative creative ways to add value for price-conscious shoppers, such as utilising product bundles or offering repair kits.

Make Data Available

In the face of continued volatility, business leaders must arm themselves and their teams with the right data and insights to align product mix, improve buyer segmentation, and shape brand positioning in the current market. Brands need to unlock new opportunities from emerging markets and optimise the supply chain to ensure availability in the right segments. They would also need to boost sales performance through sustainability and retail innovation. And most importantly, brands and marketers need to craft powerful brand positioning that sets them apart and enables long-term growth. n