There are many macro trends, globally and locally, which affect both retailers and brand manufacturers in the consumer goods space. Proper category management and its impact on retailers and brand’s success are driven by the industry’s ability to understand and capitalise on these macro trends.
It is vital that strategic category planning must be part of the manufacturers overall strategy – an integrated business strategy is essential. In addition, retailers and manufacturers must collaborate to propose meaningful growth opportunities and focus on a category driven platform not a transactional one based purely on price.
Yet with the proliferation of trends and increased competition across all categories, it is not easy knowing which trends will provide true category growth for both parties.
Some macro trends that currently affect categories globally are health, sustainability, and the ageing population. The concern for healthier products mainly centres on the ‘organic movement’, which is ultimately a desire for consumers for healthier more natural products; this also includes increasingly vegetarian consumers. The second trend is sustainability and the concern around packaging, safer formulations and protecting the environment. The third is, ageing population dynamics mainly in Europe; with the population getting older from a macro trend point of view it massively affects different categories and what outlets offer.
Edcon
Edcon (Pty) Ltd is the leading clothing, footwear, and textiles (CFT) retailing group in South Africa trading through a range of retail formats. Read more
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