First we had press then press ads. Then press ads made press cheaper to buy.
First we had TV then TVCs. Then TVCs made TV viewing cheaper
First we had Retail. Now we have retail Media..
Could it make the products on the retail shelves cheaper?
Well, I think it very much could.
Imagine a leading FMCG or Durable company paying a large amount of money to buy retail media space from a large retailer and the large retailer in turn ploughing back a part of this additional money that it has made towards subsidizing the merchandise on the shelves.
Cheaper products would become cheaper still.
These ‘still cheaper’ products would get more people into the big store.
More people in the big store would make the Retail Media more expensive.
And a more expensive retail media would once again mean greater subsidies to consumers to pick up store merchandise.
Net result the big retailer would get bigger.
Who loses in this?
In the short run the smaller retailers would lose valuable customers (unless they themselves decide to become customers of the big retailer!) but in the long run it is the National Marketer’s Brand’s image and business that would suffer the most.
In many ways the small retailer is a national marketer’s last hope of profitable business, but this might change soon.
Job number one for the big national marketers is to do everything it takes to empower the small retailer and help him build a strong and sustainable proposition for his set of customers.
It is rather paradoxical; there was a time when national marketers used to arm-twist the small guy the most and today the small retailer just might be this national marketers hope!
First we had TV then TVCs. Then TVCs made TV viewing cheaper
First we had Retail. Now we have retail Media..
Could it make the products on the retail shelves cheaper?
Well, I think it very much could.
Imagine a leading FMCG or Durable company paying a large amount of money to buy retail media space from a large retailer and the large retailer in turn ploughing back a part of this additional money that it has made towards subsidizing the merchandise on the shelves.
Cheaper products would become cheaper still.
These ‘still cheaper’ products would get more people into the big store.
More people in the big store would make the Retail Media more expensive.
And a more expensive retail media would once again mean greater subsidies to consumers to pick up store merchandise.
Net result the big retailer would get bigger.
Who loses in this?
In the short run the smaller retailers would lose valuable customers (unless they themselves decide to become customers of the big retailer!) but in the long run it is the National Marketer’s Brand’s image and business that would suffer the most.
In many ways the small retailer is a national marketer’s last hope of profitable business, but this might change soon.
Job number one for the big national marketers is to do everything it takes to empower the small retailer and help him build a strong and sustainable proposition for his set of customers.
It is rather paradoxical; there was a time when national marketers used to arm-twist the small guy the most and today the small retailer just might be this national marketers hope!
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