Data: Half of retailers view FMCG brands as threat

Nearly half (48%) of retailers are currently competing with FMCG brands selling direct to consumers and view the challenge as a growing threat, according to new research uncovered by Retail Week.

With the rise of ecommerce fundamentally changing the way consumers browse and buy, the very FMCG brands retailers stock have become a veritable threat to existing business models.

No longer needing retailer shelf space to get in front of shoppers, brands are instead targeting them directly.

The very FMCG brands retailers stock have become a veritable threat to existing business models

And with powerful global brands including Unilever and Nestle leading the direct-to-consumer (D2C) movement, retailers are understandably worried.

Exploring the marketing strategies retailers should be focusing on over the coming year, Retail Week’s new digital white paper, Transforming customer conversations– produced in association with marketing and communications provider Williams Lea Tag – surveyed 50 senior retail markerteers.

Cutting out the middleman

On top of the 48% concerned about already being in competition with FMCG brands, another 12% say that, although they are not currently competing with brands, they are already planning for it becoming a reality.

By cutting out the middleman, D2C brands can cultivate relationships with their customers while building up their own data on customer behaviour.

Rather than running scared, retailers can learn from the agility of FMCG brands and start using their tactics against them, by creating authentic marketing that shows the business’s true brand values and personality

But rather than running scared, retailers can learn from the agility of FMCG brands and start using their tactics against them, by creating authentic marketing that shows the business’s true brand values and personality.

As consumer trends continue to evolve, driven by changes in technology, retailers need to combine customer insight with innovative tech, showcasing the true potential of their brand and enhancing customer conversations.