The Ever Revolving Role of Retailers In Consumer Product Businesses

Retail is best described as a place where the brand meets with the consumers and transacts with it. The role of a retailer is hence pivotal, as it satisfies demand identified through a supply chain, aids the marketing of the brand, and eventually builds a loyal consumer base. 

With the lockdown announced in the previous year, it was particularly interesting to note some of the trends that redefined the role of these retailers- customers bought the brands that were available at and suggested by the retailer, this time was a great opportunity for unknown/ local brands to go-in for product extensions and last but not the last, retailers offered a variety of combination deals. 

While we all agree that the role of a retailer has evolved in the past 10 years, did the pandemic evolve it further? 

With rapid emergence of e-commerce and the evolution of social media platforms, the traditional retail industry and its associated businesses are going through a significant phase of disruption. With digital shop fronts shaking up the industry, the definition of retail branding seems to have changed too, making way for more ‘phygital’ experiences in the brand funnel journey.  

Md. Arshad Suhail Siddiqui, Co founder, Creando Associates explains the parameters that impact a retailer’s point-of-view while he suggests a specific brand to the consumer. “Every company is represented by one representative visiting these outlets. How a company is providing a solution or service to his retailer is important. On the other hand, how the supplier interacts with the retailer is crucial too. Hence, the relation between these 3 parties primarily defines a retailer’s push towards a particular brand,” he says. 

Throwing light on the psychology of a retailer and how brands owners can orient themselves to better understand him, Sudeshna Ghoshal, Director- Client Development, Retail Scan Management Services shares, “We must begin from understanding the routine of a retailer. His entire day is full of small transactions. Obviously, his affinity will be for products that consumers ask for. The ones that sell quickly will excite him more.

On the other hand, if this product is not available to him or if promises are not met by the brand representatives, the bond between the brand and retailer will break. This is one reason why brands must engage in retailer-loyalty programmes.”

With the growth of retail business from kirana stores to e-commerce platforms and everything in between, Siddiqui describes the key challenges and opportunities that have emerged. “With modern trade and e-commerce, a channel conflict is happening. The new trend reflects seeing products physically but buying online. 

While both channels have grown in their respective ways, the role of mom-and-pop stores continues to be prominent. The opportunity with brand owners is to leverage these channels differently. So, in case of mom-and-pop stores, consumers may try a new brand, which is unlikely online- leverage that. Don't look at it as supplementing channel but a new channel. 

Ghoshal agrees, “In my opinion, offline retail will stay. Convinced that e-commerce has expanded during the pandemic, customers depended heavily on mom-and-pop shops too. These general trade retailers are well aware of your buying habits, keep the requisite inventory and reciprocate the emotional connect that his customers have. Perhaps, that e-commerce can’t do."

This discussion was organised by Aidias Consulting Group and was moderated by its Founder & CSO, Deepak Pramanik.