“At first glance, millennial and Gen Z shoppers might seem to be sounding the death knell for the beleaguered brick-and-mortar retail industry,” this, from Marketing Land’s “Retail game-changers: Millennial and Gen Z shoppers are brick-and-mortar’s essential future.” This statement probably resonates with many in the Consumer Goods industry, as store closures and halting store growth continues to rear its head. However, before letting that “doom and gloom” set in, the same article predicts, “Millennials and Gen Z buyers actually represent the future for retail stores.” The authors also state that, “Reading between the lines shows there’s still tremendous opportunity for physical stores.”
So rather than jumping into 2018 viewing the impact of millennial shoppers as a death sentence, move forward into the new year viewing them as a new opportunity. There are already brands seizing the changing tides, such as Conagra, by noting the habits of millennial shoppers and shifting their business perspective to meet it and milk the opportunity for all it’s worth. In fact, CNBC’s article “Conagra's bet on frozen food appears to be paying off,” Conagra’s CEO, Sean Connolly, predicts growth in their future and it all comes down to how they’ve shifted their business focus to match that of changing shopper habits.
"In 2018, companies should look to evolve rather than simply react."
According to Connolly, millennials are looking for quick, yet healthy, meals and they’re finding them in the frozen food aisle. As a result, Conagra has revamped their frozen food brands to meet the modern needs of millennial shoppers and are looking to move onto other foodstuffs.
In 2018, companies should look to evolve rather than simply react. Conagra is just one example of how to approach the changing the in-store shopping habits. However, companies can’t be innovative in product alone; they must also innovate in-store promotional tactics to align with shopper priorities.
Successfully evolving and creating change begins with having the actionable insights to make better decisions. Investing in innovative analytics technology, such as a Trade Promotion Optimization solution, companies can not only use the post-event analytics to determine when to pivot quickly to keep up with ever-changing consumer habits, but also be able apply predictive modeling and constraint-based optimization to predict the success of an event or plan. Furthermore, CPG companies will be able to proactively quantify and share the results of their trade promotion strategy aligning communication and objectives with retailers who are already taking advantage of the benefits of analytical technology.
"Successfully evolving and creating change begins with having
the actionable insights to make better decisions."
With this in mind, there is no reason to view millennials as harbingers of death for CPG companies. Rather, they are an untapped resource of opportunity. It’s simply a matter of making effective changes and investments to suit this evolution. Those that have already begun to do so are seeing positive results and will quickly snuff out competition who remain adamant on the same old song and dance.
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