1/ Powerful analogy between retail and media landscape. In short, as distribution of content becomes commoditized, it’s the content itself that starts to matter, so as a #cpg retailer you must evolve to meet your customer’s needs.
2/ Importantly - this doesn’t mean physical retail is toast -- it rather means retailers need to double down on what they’re good at, and what Amazon can’t do. @ryan_caldbeck rightly says that’s experience, which means discovery. It also means curation...
3/ For decades retail was about better cost and convenience, which meant one stop shopping: why would I drive all over town when I could buy my produce, pet supplies, clothing and patio furniture all in one place? This drove bigger boxes, wider selections.
4/ Eventually selection becomes infinite as a digital marketplace (an “Everything Store”) can always carry a wider assortment than a physical box. Just like Netflix gave alternative to leaving home for a movie, Amazon lets you avoid an errand run.
5/ Amazon and Netflix both embrace limitless selection, the advantage that comes from no physical capacity constraint. But that comes at a cost: they may provide reviews and recommendations, but they don’t actually curate for their customers.
6/ Issue is people don’t thrive on infinite choice. They want help making tough decisions, especially ones that require research. “Will I enjoy this movie?” - low stakes decision; “Should I eat this?” - much higher stakes and more challenging decision.
7/ Apply that to a grocery store — it’s not just about discovering innovative products your consumers will like, it’s also about removing what they shouldn't have — stale brands that haven’t innovated, products that aren’t good for your customer.
8/ Curation means being customer first, knowing their needs and making their life easier and better. Having the courage to take certain product off shelf may sting short-term but will earn trust and build a brand that matters long-term.
9/ For inspiration, look at who is innovating in CPG retail: @credobeauty who vets the ingredients of every product they sell, or @ErewhonMarket whose tagline is “if it’s here it’s good for you”.
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