Richard J. George, Ph.D.

FDBuyer: Fire the Nerds! Is there hope for those secondary brands after all?

April 7, 2010

FROM RETAILWIRE:
No rocket science here -- the recession has turned many branded manufacturers into cowards, afraid to innovate. More and more, from the shopper's point of view, the only real differentiation between brands is "what's on sale?" What's the opportunity for smaller brands within the movement toward SKU rationalization at the bigger boxes?      [more...]

I believe there still are tremendous opportunities for smaller or regional brands that provide a real point of differentiation to the customer--retailer and consumer. I agree with the article relative to the mood of retailers to buy local. This mood extends beyond the retailer to the consumer as well.

The key for the smaller players is to think niche and focused. Don't pretend to act like a big player with deep pockets. Instead concentrate resources at the point of attack. The point of attack is at retail. Develop brands that allow the retailer to demonstrate a point of difference. Help retailers to think like a brand and continue to act like a retailer. By that I mean provide an offering to the retailer that is not duplicated by other retailers, giving the customer a real reason--beyond low prices--to shop the retailer.