Counter in­tel­li­gence

The Works - - RETAIL SPOTLIGHT. -

Re­tail is not for the faint-hearted. It’s al­ways been a dy­namic in­dus­try and com­pe­ti­tion is in­ten­si­fy­ing. Chang­ing shop­per habits, de­creas­ing cus­tomer loy­alty and the rise of on­line shop­ping are just some of the is­sues fac­ing re­tail­ers, writes ADRIAN FER­NAN­DEZ.

From gro­ceries to fash­ion, tech­nol­ogy to home­wares, shop­pers are seek­ing greater value from favourite brands and al­ter­na­tives.

This is es­pe­cially true of the gro­cery sec­tor.

Des­per­ately Seek­ing Value

Ac­cord­ing to emma, 57 per cent of gro­cery shop­pers bought a “home-brand” food or bev­er­age prod­uct in the past month. Milk is the main home-brand prod­uct pur­chased (44%) fol­lowed by bis­cuits (19%) and con­fec­tionary (17%).

Jess Gill, Direc­tor of Cus­tomer Ex­pe­ri­ence for Wool­worths Su­per­mar­kets, points to the im­por­tance of value in driv­ing foot­fall. “About 20 mil­lion peo­ple walk through our stores ev­ery day, so we have to make sure we have the right of­fers in the right places for these cus­tomers.”

The three most pop­u­lar depart­ment stores vis­ited by shop­pers in the past month are Big W, K-Mart and Tar­get (vis­ited by 44%, 40% and 36% of shop­pers re­spec­tively). Myer (16%) and David Jones (7%) lag be­hind their dis­counter ri­vals, ac­cord­ing to emma data.

Value cloth­ing stores Best & Less (10%), Rivers (7%) and Millers (5%) were the most vis­ited cloth­ing re­tail­ers.

Many es­tab­lished re­tail­ers are adopt­ing value-driven strate­gies to stay rel­e­vant.

Some es­tab­lished re­tail brands are not read­ily as­so­ci­ated with value and must change con­sumer opin­ion of their brand.

To do this, re­tail­ers can con­sider “reap­praisal” ad­ver­tis­ing.

The aim of reap­praisal ad­ver­tis­ing is to change con­sumer per­cep­tions of a brand by pre­sent­ing it in a new or dif­fer­ent way.

Trust is the vi­tal in­gre­di­ent to suc­cess­ful reap­praisal ad­ver­tis­ing, as con­sumers must be­lieve change is more than an empty prom­ise.

News­pa­pers are the most trusted paid medium in Aus­tralia, mak­ing it the per­fect ve­hi­cle for reap­praisal ad­ver­tis­ing.

Ac­cord­ing to the lat­est Nielsen Global Trust in Ad­ver­tis­ing and Brand Mes­sages re­port, ads in news­pa­pers are trusted by 58% of Aus­tralians (4% more than trust TV ads).

Once a re­tailer has won over the value-driven shop­per, the next chal­lenge is to hold on to them.

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