Thread by @ryan_caldbeck

1/ Much like in Media, in Retail/CPG “Content is King.” We are headed towards a world in which retailers must deliver unique products/experiences that meet fragmenting consumer tastes. Problem is they are set up to deliver the mass products just at a lower cost.

2/ Pipes used to be king. How to deliver similar content. Today content is King. @netflix buying everything interesting and able to target non-mass tastes very effectively, @amazon starting own shows. Gotta be terrified if you run programming for @nbc
statista.com/chart/11114/ne…

3/ In CPG/retail story is similar. As the pipes (i.e. stores) in CPG have been commoditized, experience has become king. Best way to beat AMZN/WMT on experience is discovery of… you guessed it – content. Meaning the brands themselves that line the shelves are what matters.

4/ The content provider (retailer) has to identify the content that will most resonate with their consumer, in that location. Or die. Psst – that takes a lot of non-commoditized data. Don't tell anyone.

5/ To compete in the next 5 years retailers need to deliver content (products/brands) that are differentiated in a way that matters. You cannot merchandise the same legacy brands as the grocery store across town. Because if you do, Amazon will kill you both.

6/Consumers want value in 2 ways – a) the same product for less and b) innovative products that meet unique needs. “Content is King” is the latter. In CPG AMZN/WMT won former. When you put big CPG on your shelves, just know you’re competing over pennies against them. Good luck.

7/ However, if retailer subscribes to “Content is King”, you focus on finding innovation to put on your shelves. Looking for the next @HaloTopCreamery before it hits- that attracts consumers to you. Now they aren’t shopping over price, they come to you to discover innovation.

8/ That means predicting what will be a hit, before everyone knows it’s a hit. Continuously. Retailers cant keep relying on the current equation: long-term buyer who uses commoditized data + distributors that are paid to give them the commoditized brands = stagnation.

9/ Whole Foods used to be that source of innovation. Sadly it seems they are moving away from a focus on innovation.

10/ My colleague @zgrannis would point out that Netflix etc are creating their own content, not just identifying interesting non-mass shows. I agree- and think more of that will happen in retail (whether it is @THRIVEmkt growing its proprietary brand, Kirkland signature, etc).

11/ What matters is customer experience. That could be a supermarket with no checkout or a wonderful experience with new brands the consumer hasn’t seen before. I think both are recipes for success.
bbc.com/news/business-…

12/ The consumer is in charge now. Your grocery store is looking like just another box- it is commoditized. Just like the pipes. What matters is what you do in the box- and you better do something special.

13/ But let’s go back to first principles. Content is King. To get content we need non-commoditized data (if everyone has same data, the shelves will be pretty similar).

14/ Over the next three years we’re going to see an explosion in investment from retailers into data. That puts pressure on existing CPG data companies to deliver non-commoditized solutions or be disintermediated.

15/ Have I ever mentioned this is a heck of a time to be in CPG/retail? I forget if I’ve said that.