Unlocking Success in the Evolving CPG Landscape
Key Takeaways from Groceryshop 2023
Groceryshop 2023 was a whirlwind of excitement, highlighting the challenges and opportunities in the grocery and consumer packaged goods (CPG) industry. The importance of creating people-centric approaches, data-driven strategies, and innovative marketing techniques were especially prominent topics for attendees. In case you missed it, we’ve compiled the key topics and takeaways to help your organization thrive in the rapidly evolving CPG landscape.
Putting Shoppers First
One resounding theme echoed throughout the event – the consumer is at the heart of the grocery ecosystem. Brands, retailers, and solution providers are recognizing the need to come together in new ways to serve the evolving needs of consumers. This collaborative approach, often referred to as "co-opetition," is not just about divvying up each party’s role in the shopper’s journey; it's about working together and leveraging each other’s strengths to improve the consumer’s path to purchase.
Retail media networks (RMNs) took center stage, acknowledging that the shopper experience should be prioritized above all else. It's no longer just about capturing data; it's about understanding and addressing consumer needs and challenges. According to a study by Epsilon and CitrusAd, “without the ability to see people at the individual level, there’s a high chance of declining shopper experience due to over-messaging.” With the one-size-fits-all approach fading away, staying consumer-focused means going beyond simply serving impressions. Brands and retailers must now understand people at their core, embracing the diversity in each shopper’s behavior. By tailoring experiences to individual needs, businesses can bridge the gap between scale and meaningful messaging.
Marketing strategies shine when focused on identifying differing human needs and crafting solutions that add value to consumers and businesses alike.
The Influence of Retail Media Networks
Retail media networks have evolved from a fledgling concept to a mature and essential component of this industry, with major brands now investing substantially into RMN advertising. Regional grocers are making significant strides in the RMN business, illustrated by Hy-Vee’s debut of RedMedia, their full-scale, in-house retail media platform. Recognizing that shoppers are more likely to convert when engaged by their favorite stores, optimizing RMN strategies based on individual preferences is becoming a significant trend for both retailers and brands. As RMNs continue to evolve, so too do the tools and strategies businesses have available for improving consumer reach. While digital shelf signage, new screen technologies, and automated delivery robots were all exciting avenues for crafting immersive in-store experiences, the cornerstone of innovation this year was the implementation of artificial intelligence.
Artificial Intelligence (AI)
Perhaps the most widely debated topic at this event, AI (both in its traditional form and the emerging generative AI) sparked discussions about its dual landscape of risks and rewards. While concerns of job displacement and privacy erosion continue to persist, the capabilities AI offers ignited excitement for many marketers at the event. Opportunities for personalizing customer experiences, optimizing supply chains, and enhancing decision-making were all major points of discussion.
Retailers especially are increasingly embracing AI's power to optimize inventory management and predict consumer behavior. AI-driven chatbots, recommendation engines, and predictive analytics are revolutionizing the way businesses will interact with their customers. Striking the right balance between innovation, automation, and ethics through AI implementation is quickly becoming a critical focus area for businesses.
Shoppable Video: An Opportunity to Engage
Another prevailing technology, shoppable video emerged as a vital tool for engaging consumers, creating value for shoppers and retailers alike. As video consumption continues to rapidly grow, videos tailored to individual needs have gained importance as a way for companies to better connect with their audience through personalized content. Transforming the shopping experience, shoppable video allows businesses to captivate and educate consumers, strengthening their brand-consumer relationship along the way. By connecting with consumers where they live digitally, brands can leverage exclusivity, live experiences, and celebrity endorsements in order to drive conversions while enhancing personal connections.
Groceryshop 2023 was a titan of a trade show. Organizations operating in every stage of the consumer journey emphasized the importance of embracing consumer-centric strategies, leveraging the power of retail media networks, and harnessing the potential of new technologies like AI and shoppable video in order to thrive in the evolving grocery and CPG landscape. By focusing on people's needs, collaborating effectively, and staying innovative, brands and retailers can navigate any challenges and seize the opportunities presented by this ever-exciting industry.
Interested in how AdAdapted can help your brand achieve a consumer-centric approach? Connect with one of our experts today to learn more!