The Break Up

Please watch the video before reading below

This ad from Microsoft is more explanatory than any words. FMC branded Goods are relyinh heavily on advertising. To be fair, against the battle to private labels, it is one of the way to keep differentiation. All powers (distribution, price, strategic place, offerings, closeness) are now in hands of super hyper mega market. Looking further, you may not agree, I might not be right in what I do foresee, these centers of distribution will keep going under their hyperconcentration process.

Still, we said that for many years concerning the automotive industry, power being mainly in the hand of car manufacturer. It happened for GM in the 80s with the entry of Toyota, it might happen again now with the soon to come entry of general fully developed green cars giving a way for possible new entrants. So it is not a frozen process. The likes of Carrefour, Lidl, Aldi, Tesco, El Corte Ingles are already delivering so this distribution leverage might shift again on the ones supplying he goods.

It is where the FMC Branded Goods like the ones from Procter & Gamble, Johnson & Johnson, L’Oreal, Philips, Gillette or Wilkinson might want to continue ensuring delivering directly to customers bypassing retailers. Supermarkets are doing it, and nowadays, in a lean leading life, everybody would like to minimize the waste of time in every day. Away from food, for non perishable product in the time being, that might be a solution of adding value to a product by the offerings of services aside, keeping the mind of the customers at peace, without trying to control forcefully his life, just giving him the best range of choice and comfort in this purchasing experience.

Now, coming back to the video above. Yes I do believe it is more explanatory than only the words in it. FMC branded goods have to differentiate themselves and use a lot of advertising. Now the customers might be like this woman getting frustrated, with no trust. In the case of one couple in an argument at a restaurant, pay attention to the waiter. He might always get more than you would expect. A waiter is here to give a services, to make your experience invaluable, to get the add-ons on a unique experience. And what is a waiter? Away from restaurant, he can wait, analyse, and ensure making the right move forward at the right time. He is at the front of the scene and he can help with his advices to get people more into their purchasing process. The waiter is a good listener, and acts at the right time. This might be true for these FMCG, Electronics, lights, DIY, clothes retailers

There are different leverage I can quickly think of at this stage if not already levered:

- Don t hammer and scare customer, accompany them further in the purchasing process

- Ease more his life reducing he 7 lean wastes of purchasing mode: Logistics, inventory, Time, over purchase and so on

- Enable a change in behavior by get him/her more active in the process

- Green and corporate responsibility promoting fair trade and a responsible supply chain

NDLR: This is written in the context of developed countries with stable and fully developed market as I am sure retail will keep finding way for an escape growth through emerging market.