Brands, retailers and consumers: a changing dynamic
The balance of power between brands and retailers is shifting. The consumer is the deciding factor.
Disruption and innovation are putting pressure on the relationship between consumer products companies and retailers, and pushing both to focus on the consumer.
Retailers have become more powerful
Data, retail media and private label give retailers more control.
Consumer products companies have become more accessible
Direct channels let brands reach consumers without intermediaries.
Brand loyalty is weakening in many categories
Many shoppers now choose on price, convenience and availability rather than brand.
Consumers have become more demanding
They expect value, transparency and convenience.
Pressure on the relationship is building
Brands and retailers increasingly compete for the same customer relationship.
Online shopping continues to expand
Consumers keep moving purchases online, including in categories such as groceries.
Controlling the product narrative is more complex
Reviews, social media and AI assistants shape perceptions.
Five opportunities to reset the relationship
Share data, plan jointly, collaborate on retail media, simplify supply chains and co-create products. Read the full analysis in How to balance the CPG, retail and consumer relationship.
Summary
Collaboration around the consumer beats competition for control.