ETHELBERT WILLIAMS

DTC/Digital Native Brands struggle to achieve scale. CPG portfolio's are stagnating. Consumers are trading down, and retailers owned brands are disproportionately growing. Target, Costco, Trader Joes, and Aldi owned brands are winning. Now Walmart has launched a formidable new elevated basics brand, BetterGoods. The best way to beat the Amazon/Temu/Shein/TikTok marketplaces is to sell products they don't have.

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eCommerce & CPG Strategy: $1T Global advertising & Retail Media Great visual by the EMARKETER team. Thought starters: (3) 1. Do you have a balanced media strategy? 2. Is it aligned to your priority consumer segments and path to purchase? 3. Do you have systems and capabilities to capture and measure value? Key stats: (2) 💰 +9% — Global ad spend will grow this year. 💰 +12% — Growth is driven by digital ad spend. Key Themes: (3) 🔑 Digital will account for 70% of overall media ad spend worldwide. 🔑 Nearly every country (ex. Argentina) will see its digital ad spend grow this year. 🔑 Global ad spend will pass the $1 trillion milestone next year. Ways to reach us: Pattern® The CPG View The Retail eCommerce Club #ecommerce #digital #omnichannel #strategy #cmo #cdo #ceo #cro #leadership #retailecommerceclub #cpg #privateequity #playtowin

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Sam’s Club had a deal on Gen Z baloney last week. And CNBC was buying. The warehouse club CEO took to the air to tout its “68% growth in Gen Z members” over the past two years, citing Sam’s Club digital engagement as the primary driver. Of course, he didn’t mention the real reason for the Gen Z growth (which everyone seems to ignore these days): Gen Z has grown up. Two years ago, the eldest members were wrapping up college, and since then, become adults with all of the fun trappings of adulthood like leases, insurance, and, of course, warehouse club memberships. They were going to see explosive Gen Z growth no matter what because Gen Z aged into the buyer demo--and they love values. A big percentage spike was guaranteed because they were essentially starting at zero two years ago. (That isn’t to say Sam’s digital engagement is not enjoyed by its young members, however, it's in no way driving membership. If anything, it's increasing merchandise sales and retention.) You’ve heard me say it before and you’ll hear me say it again: 💡 Lifestage is FAR more insightful and actionable than generation. Always be sure you’re factoring it into to any youth marketing decisions. -- Also, as an avowed Costco and data stan, I did get a little ruffled when he inferred that Sam’s Club was becoming a Gen Z favorite over Costco. YPulse data pegs Costco’s total mindshare nearly 2x as high as Sam’s Club — and Gen Z thinks its 3x cooler (yes, we track coolness). Why? Costco’s public perception is far more in-line with Gen Z’s values than Sam’s (re: Walmart). Additionally, whether intentional or not, Costco crossed into youth cultural zeitgeist years ago. Young people have embraced the Costco memes, dupes, TikToks, and more from passionate fans. Just a simple hashtag search reveals TikTok’s # costco content is 4x higher than # samsclub. BRB - Craving that $1.50 hot dog rn. -- (H/T Joel Ponce for sharing the interview. You should check out his original post on it for great ideas on expanding on the club's digital efforts -- Roblox, anyone?)

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Hello LinkedIn Network! 👋 Caught an interesting article in the #WSJ about Levi Strauss's latest chapter on their D2C journey. Levi's isn't just stitching up jeans: they're crafting customer relationships with nearly half of their sales now coming directly from consumers. 👏🏻 It's not just about the classic denim anymore; it's about weaving a direct narrative with the people who wear them. And while their D2C slice of the pie is impressive, let's button down what truly matters: This pivot isn't solely about sales figures or sidestepping traditional distribution channels. It’s about nurturing those essential direct relationships and gleaning insights straight from the source – the customers. Yes, distribution channels are manifold, and D2C is one thread in the mix. However, it's a thread that's spinning the wheel of transformation, accelerating brands towards more intimate and insightful consumer connections. So, as we watch Levi’s tailor their approach, let's ask ourselves: How are we fitting D2C into our own patterns of growth? As for Levi’s, the fit seems just right. 🧵✂️ Check out the linked article and leave a comment with your own thoughts. #DirectToConsumer #BrandStrategy #RetailInnovation #CustomerEngagement

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Shein has been repeatedly rejected in its attempts to become a member of the National Retail Federation, the largest trade association in the industry. The NRF's acceptance could provide validation for Shein and help legitimize the company in the eyes of U.S. lawmakers. Shein is facing scrutiny over its supply chain, use of a tariff law loophole, and geopolitical concerns related to China. The NRF's approval could be a positive catalyst for Shein, although the organization has not completely shut the door on Shein's membership application. The NRF's board leadership team and executive committee play a significant role in membership discussions, with key industry insiders involved in the decision-making process. #shein #nrf #ipo

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Here are some interesting stories from the world of retail for Thursday, June 6: 🧘🏽‍♀️ lululemon beat Wall Street’s earnings and revenue estimates, but issued weak second-quarter guidance as it contends with a slowdown in the Americas, its largest market. 👕 Hanesbrands Inc. will sell Champion to Authentic Brands Group in a deal worth up to $1.5 billion with performance incentives. Authentic owns brands such as Reebok, Forever 21 and Quiksilver. 5️⃣ Five Below cut its outlook for the year, warning that its core low-income shoppers were facing an outsized impact from years of inflationary pressures. It posted an unexpected decline in same-store sales for the first quarter. 👙 Victoria’s Secret & Co. said it was encouraged by demand for its bras, sleepwear and other clothing in May, but the company said it was exercising restraint amid continued caution more broadly among the US consumer. 🏪 Foxtrot intends to reopen several locations in Chicago in the Gold Coast and Old Town neighborhoods. The news comes after Foxtrot and Dom's Kitchen & Market closed on April 23. 🌳 Dollar Tree Stores Tree said that it had started a formal review of strategic alternatives for Family Dollar, which it said could include among others, a potential sale, spin off or other disposition of the business. 💵 Walmart is now offering bonuses to its hourly employees in the US., the company announced Wednesday. The longer an associate has been with the company, the higher the associate's bonus potential, to a maximum of $1,000. 📚 In a blow to publishers and authors, Costco Wholesale plans to stop selling books regularly at stores around the United States, four publishing executives who had been informed of the warehouse retailer’s plans said Wednesday. 🚚 Albertsons and Uber have launched a new food rescue initiative that aims to address food insecurity and food waste in several major US cities. The program donates surplus food from the grocer’s stores to local nonprofits. 📸The TJX Companies, Inc., parent of TJ Maxx, Marshalls and HomeGoods, said it’s equipping some store employees with body cameras to thwart shoplifting and keep customers and employees safe. 🍔 McDonald's lost a European Union trademark dispute over the Big Mac name after a top European Union court sided Wednesday with Irish fast-food rival Supermac's in a long-running legal battle. ✂️ The Bank of Canada's decision on Wednesday to cut interest rates from 5% to 4.75% is expected to provide financial relief to Canadians and encourage consumer spending. 🧳 Shinola and Filson parent Bedrock Manufacturing Company has appointed Steve Katzman to the role of CEO and Kevin Wertz as chief marketing officer. 🇦🇺 ALDI Stores Australia is moving into the insurance sector, with the launch of a series of homes and contents, car, and landlord products. #retail #retailnews #economy #DailyRetailNews

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eCommerce & CPG Strategy: How marketing budgets have shifted in 7 years 🔥 Great visual by the Gartner team. Key Questions: (2) ⛄️ How has marketing budget resource allocation shifted in the last 7 years? ⛄️ Are there any consistent themes (spoiler alert — retail media)? By the numbers: (4) ⬇️ Martech: 29.2% to 23.8% ⬇️ Labor: 24.5% to 22.6% ⬆️ Paid media: 23.2% to 27.9% ⬇️ Agencies: 23.0% to 22.0% Stay in touch with our newsletter: https://lnkd.in/eMx4Zh2k Ways to reach us: Pattern® The CPG View The Retail eCommerce Club #ecommerce #digital #omnichannel #strategy #cmo #cdo #ceo #cro #leadership #retailecommerceclub #cpg #privateequity #playtowin

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Resetting the Growth Agenda - Bain & Co TL/DR: most CPG’s have not delivered volume driven growth in recent years, most growth is a result of significant inflation in both wholesale and retail pricing. The message here is to achieve growth, the required strategies must have a positive impact on consumers, customers, employees and the planet. Converting these stakeholder targets into six priorities: ·        Winning over the consumer ·        Winning with the customer ·        Smart complexity ·        The new digital agenda ·        Leading on sustainability ·        Tomorrow’s operating model CONSUMER: Leverage insights to determine markets, channels, categories, and offerings. Prioritize your innovation and growth agenda against the fastest growing/ most profitable targets. Emerging markets will be key here but you must be prepared to provide unique resources. CUSTOMER: In mature markets, improved measurement capabilities on return on trade investments is critical, as is the willingness to reallocate spending to the most profitable channels and customers. In emerging markets, staying ahead of rapid evolution key, with emphasis on taking control of your brand with respect to eB2B marketplaces. SMART COMLPEXITY Work backwards from the consumer and apply your supply chain capabilities to deliver the balance needed. Rationalization of SKUs, brands, or markets ranks high in improving/reducing complexity, but executive teams must also fully understand the benefits the right level of complexity can bring. DIGITALIZATION Hyperconnected CPGs will generate faster, better results for a broad range of stakeholders. Areas of focus are leveraging predictive AI and more detailed supply chain data/traceability Data strategies that strengthen consumer insights should improve business decisions SUSTAINABILITY Take a proactive approach in achieving sustainability objectives Consumers want solutions and are willing to pay a little more for them Retailers are looking for suppliers that can help them reduce their carbon footprint Sustainability goal will only be achieved if backed by incentives and KPIs OPERATING MODEL Support and resource frontline teams with dynamic budgeting and permission to test and learn Keep them close to consumers leveraging insights to power innovation and execution. Pair the best talent with the biggest opportunities. Bain & Co states that “resetting the growth agenda is undeniably the top priority for consumer products this year.” But the current year focus must support longer-term growth, by balancing positive value to all stakeholders.

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Getting into a retailer like SEPHORA is a huge accomplishment. Once small brands get that initial yes they quickly get hit with the reality that they are in direct competition with 100s of other companies. Some of that competition is going to be multi-national companies that spend hundreds of thousands of dollars to support their brand’s success in Sephora alone. Indie brands cannot compete with that kind of financial power. It’s one of the reasons I support the merchandising effort this retailer has done under The Next Big Thing. The section highlights many of the new entries coming into the retailer. It gives a collective nod to the underdogs. It also becomes a pivotal benchmark for how much product will be sold from those shelves. Products that do well in this section...stay in the store. Products that do not sell well in this section....get discontinued from the store. I encourage customers to seek out The Next Big Thing sections in Sephora. There are separate sections for skin care and hair care in each store nationwide. Black and brown founded brands are being highlighted here. They must be supported to survive. #IndieBeauty #BlackBeautyBrands #Sephora

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If you missed the Retail Media Report Card Deep Dive webinar, it's now available to watch on-demand! Watch The Mars Agency's commerce media team discuss how retail media can be leveraged to drive incremental growth for your brand and what capabilities leading retailers are bringing to the table: https://lnkd.in/dUXpPsT4 #retailmedia #webinar #retailmediareportcard

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This is a must-read for CMOs! Mars United Commerce recently spoke with CMOs at leading retailers to hear what business challenges they are currently facing. Michele Roney outlines three key capabilities retailer CMOs must build within their marketing organizations to help tackle these challenges. Link to read it in the comments 👇

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eCommerce & CPG: The Role of Amazon 🎯 Great write up by the EMARKETER team. Fun Fact: (1) 🎉 40% & ~$500b — “Amazon will account for 40.4% of US retail ecommerce sales for a total of $491.65 billion this year, according to our February 2024 forecast.” Key Themes: (3) 🔐 7% — “Despite its ecommerce dominance, Amazon will make up just 6.6% of US retail sales, per our forecast. Amazon’s retail share will grow to 7.0% in 2025 as more spending goes to ecommerce.” 🔐 8 of 10 — “Over the next two years, Amazon’s market share will increase in 8 out of 10 product categories, per our forecast. Those two remaining categories are home improvement (due to established home-improvement retailers) and auto (due to Tesla and Carvana).” 🔐 14% vs 11% — “Among major US retailers, only Walmart is growing its ecommerce sales faster than Amazon at 13.6% compared with Amazon’s 10.5%. Walmart has Amazon outpaced in digital grocery specifically, which could pose an increasing threat to Amazon as the category matures.” #ecommerce #digital #omnichannel #strategy #cmo #cdo #ceo #cro #leadership #retailecommerceclub #cpg #privateequity #playtowin

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Walmart has shifted its focus to attract wealthy consumers due to the persistence of inflation, making them more price-sensitive and seeking bargains. This has given Walmart an edge over Amazon in terms of shopping convenience. The retail giant has invested heavily in improving its online presence, acquiring digital properties, launching Walmart Connect for digital advertising, and buying VIZIO HOLDING CORP to accelerate its online growth. Walmart is establishing itself as a leader in unified retailing by seamlessly merging online and offline sales channels for a cohesive shopping experience. company's extensive network of brick-and-mortar stores gives it an advantage over Amazon, especially in the grocery sector. Walmart's transformation aims to save customers money and time, focusing on convenience and innovation. The convenience offered by Walmart has attracted wealthy Americans looking for bargains in an inflationary environment. The retail giant has successfully appealed to more affluent households, with those earning over $100,000 being a significant contributor to growth. Walmart's strong position in groceries and essentials, along with its value proposition, has helped it weather the cooling demand for discretionary goods. Shopping at Walmart is considered more convenient than Amazon in certain situations, as Walmart leverages its vast store footprint for same-day delivery. The growth of affluent consumers seeking bargains at Walmart is part of a broader trend, with higher-income shoppers driving growth for the company. #walmart #amazon #modernretail #customerexperience #affluentcustomers

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According to GlobalData, the U.S. secondhand apparel market grew 11%, or seven times faster than the broader retail apparel market, to $43 billion last year. The report estimates that resale sales online and at traditional thrift stores could reach $73 billion by 2028. #resale #retail #apparel #retailsales

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Retail sales show signs of stabilization. 🛍️ Older shoppers are striking a balance in their budgets and diving into deals, resuscitating sales that were once on pause. As Circana’s Marshal Cohen points out, consumers are willing to spend when the right price aligns with their current needs. Marketers need to tailor strategies to address consumers spanning all ages in these unique moments. Explore the full story in the latest Circana blog.

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🔍 Consumer Behavior Insight: Trust vs. Value Fascinating to see that while 94% of US consumers surveyed do NOT trust Temu, 68% still shop there. This highlights how powerful prices, ease of use, and deals can be. Despite an instinctual feeling of distrust (System 1 thinking), more deliberate, analytical thinking (System 2) considers financial benefits strong enough to outweigh trust issues. Read more: https://lnkd.in/e7DbveKB

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eCommerce & CPG: Publicis vs. Omnicom Stellar write up by Joshua Novick 🔥. 📈 Publicis Groupe has experienced a remarkable surge in the past couple of years, growing revenue by 26% from 2021 to 2023 and doubling its market cap from 12 billion euros in early 2021 to over 25 billion euros currently. 🥊 Omnicom is now its closest competitor, slightly trailing behind in revenue and EBITDA, essentially tied in net income, but trailing by 50% in market cap. 💼 Gone are the days when WPP still the leader in revenue, led the pack of the big five advertising groups. However, it now lags far behind in profitability and value. But let's compare the two current leaders in the advertising service industry (2023): 💰 Market Cap on May 2nd, 2024: Publicis: €26B Omnicom: €17B 💸 Revenue: Publicis leads Omnicom by 11%: €14.8B versus €13.3B 📊 EBITDA margin: Publicis 18%, Omnicom 16% 💹 EBITDA: Publicis leads Omnicom by 26%: €2659M versus €2101M 💵 Net Profit: Publicis leads Omnicom by 4%: €1312M versus €1260M 💰 Free Cash Flow: Publicis leads with €1796M vs Omnicom €1134M 💼 Revenue per Employee: Omnicom here is more efficient: €177k versus €146k (Publicis) 💰 Cost per Employee: Publicis here is more efficient: €83k versus €89k (Omnicom) Publicis also reports compensation costs without social security. Average compensation of the French multinational: €67k 📊 Net revenue by client's industry: Publicis: 🔸Auto 15% 🔸Financial 14% 🔸Healthcare 14% 🔸Food & Beverages 13% Omnicom: 🔸Pharmaceuticals and Healthcare 16% 🔸Food and Beverage 15% 🔸Auto 12% 🔸Technology 8% 💼 Service split of revenue: Publicis (according to investor presentation): 🔸1/3 of net revenue is media, 🔸1/3 Data and Tech (Epsilon, Publicis Sapient), 🔸1/3 Creative Omnicom (reports more specific data): 🔸Advertising and Media 54% 🔸Precision Marketing 10% 🔸Commerce & Branding 6% 🔸Experiential 4% 🔸Execution and Support 6% 🔸Public Relations 11% 🔸Healthcare 9% The advertising world has dramatically shifted over the past decade 📈: 🌐 Google (Alphabet Inc.) leads with a near €2 trillion market cap, about 28 times the combined market cap of Omnicom, Publicis, WPP, IPG, and Dentsu, which totals just €70 billion. 📘 Meta, the second top player, has a market cap of about €1 trillion—14 times the combined market cap of those top 5 traditional ad giants. Revenue insights 📊: 💰 Google generated €280 billion, while Meta brought in €122 billion. 📉 In contrast, the top 5 traditional ad groups together generated €63 billion. Profit comparison 💸: 🚀 Google's net income of €82 billion exceeds the total revenue of the top 5 advertising groups combined ( €63 billion.) Ways to reach us: Pattern® The CPG View The Retail eCommerce Club #ecommerce #digital #omnichannel #strategy #cmo #cdo #ceo #cro #leadership #retailecommerceclub #cpg #privateequity #playtowin

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