Retailers and manufacturers divided on assortment priorities

Retailers and manufacturers are divided on assortment priorities, according to the third-annual Category Management Survey by Symphony GOLD, which provides a unified software platform for omni-channel retail.

“The survey determined that retailers are focused on category innovation through new product development, rationalization and planogram design in their assortment reviews, while consumer product goods manufacturers are keen to drive revenue by increasing distribution and listing opportunities with products that already exist,” according to Symphony GOLD.

Seeking to benchmark approaches to category management, the Symphony GOLD 2016 Category Management Survey surveyed over 250 leading CPG manufacturers from across the United States and Europe.

The survey revealed that although manufacturers globally report that 49 percent of retailers are demanding SKU rationalization and new product introduction, 48 percent of manufacturers globally would prefer to do opportunity gaps assessment and advanced trending analysis. Overcoming this division requires both parties to collaboratively review category strategy in order to transform collective insight into timely and actionable planning that is focussed on delivering profitable category growth, according to Symphony GOLD.

The survey also found that assortment recommendations are becoming more granular. Globally, 31 percent of manufacturers report that assortment and space recommendations are made at total retailer level. This number increases to 36 percent in the United States but drops to 22 percent in the United Kingdom, with a similar number (23 percent) providing plans at a more granular fixture level. While this indicates the depth at which manufacturers are required to provide assortment and space recommendations to retailers, it also reflects the different retailing landscapes.

According to the survey, U.S. and UK respondents were more likely to describe the retailer-manufacturer relationship as mostly collaborative (46 percent and 40 percent respectively), while in mainland Europe this number drops to around 25 percent. However, as shoppers come to expect greater product availability and more relevant assortments, closer collaboration represents an opportunity. By embracing a more collaborative approach internally and externally, retailers and manufacturers can improve the connection with their customers and drive a more cost-efficient category management process.

“This year, the key factor is the need to increase collaboration between retailers and manufacturers in order to get closer to customers and drive more business growth,” said Matt Robinson, director of solution marketing for Symphony GOLD. “Organizations who are winning are those that invest in solutions that not only integrate data with technology, but that connect people and processes with the capabilities necessary to increase category growth and employee productivity.”