Dubai: Supermarket shelves loaded up with all the product categories and brands that one can think of – that’s a good thing, right?
Not so, says new findings by NielsenIQ, the market consultancy, which says that overloaded shelves will not fetch desired results for retailers. In fact, it could make for dismal returns.
Take skincare, for instance. In the UAE, 73 per cent of products/brands make up less than 2 per cent of the overall sales in the category, which suggests a “glut in non-performing products and variants that exist within just this one category alone,” according to NielsenIQ.
That should be an eye opener for these brand owners, who would be paying sizeable amounts to retailers to stock their products and with high visibility.
04 May 2021 / 22:30 H. Shoppers are visiting physical stores less often and, when they do, they spend less time browsing the shelves than they did before the pandemic. – REUTERSPIX
PETALING JAYA: Now is the time for fast-moving consumer goods (FMCG) manufacturers to reassess and rationalise their assortment in order to better meet the changing needs of pandemic-hit consumers, and to enjoy greater savings and profitability, according to NielsenIQ.
Across the globe, there are structural challenges with assortment across most FMCG categories.
Looking at the most underperforming categories in emerging and developing markets, on average, 75% of stock-keeping units (SKUs) contribute to less than 2% of category sales. Beverage, instant noodles, chocolate, and detergent are some of the most underperforming categories in the top 15 markets.
Details 30 April 2021
As the pandemic has reshaped customer behaviours and preferences, brands and marketers are advised to revise their strategies to better meet their needs and enjoy greater profitability, according to NielsenIQ.
There is a global phenomenon over structural challenges with assortment across most FMCG categories. On average, 75% of stock keeping units contribute to less than 2% of category sales. Beverages, instant noodles, chocolate, and detergent are some of the most underperforming categories in the region’s top 15 markets, including Singapore, Thailand, Malaysia, Hong Kong, and China.
For example in Hong Kong, 70% of stock keeping units in the ready-to-drink tea category contribute to less than 2% of overall category sales. The same phenomenon can be seen across other key categories such as shampoo (65%), chocolate confectionery (64%), sanitary protection (56%) and sauce (47%), meaning that this is not an isolated i
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