![]() ![]() The cost of this data is of particular concern to small- and mid-sized brands (generally $1-10 billion in revenue). In a bit of a Catch 22, the ability for CPGs to gain retailer trust and demonstrate category captaincy – or the position for them to make decisions for all category products – is dependent upon solid data and sound decision making that they otherwise might not have. It remains to be seen how much of their valuable data Walmart will actually be willing to share with each CPG, given that this data could, presumably, help them ‘win’ against the retailers’ own store brand products. While inherently dependent upon each other, the two are often at odds with conflicting agendas and their own profitability targets. The retailer/manufacturer relationship has also historically been a complex one to begin with. Data budgets for many companies have grown over the years, but the pace of monetized data has simultaneously increased alongside it - and this move from Walmart could catalyze others to price against them with uncertain results. It would be an understatement to say it’s a massive opportunity in today’s market. Not to mention that once monetized, this could help with faster access to cleaner, standardized, and more well-managed data sets.īut this strategy has created concerns from CPGs and suppliers with regard to budget allocations, planning capabilities, and competition. ![]() In fact, according to AdAge, this venture is projected to generate $1 million in data and analytics for every $1 billion of sales, and $400 million projected annually for the U.S alone. With more data, the thought has been, CPGs and suppliers can drive greater efficiencies, stronger merchandising, and more impactful marketing plans that increase overall sales.īy productizing that data though, Walmart is making a smart move to boost its revenue. ![]() While the monetization of retail data is certainly not a new concept - just look at the likes of IRI, Albertson’s, and 84.51° from Kroger - Walmart had been one of the biggest proponents of free access to rich intelligence for years. Near the end of 2020, Walmart began discreetly promoting its new data arm, “Walmart Data Ventures (WDV).” Focused on productizing Walmart’s data assets, its suite of products is said to eventually “deliver actionable, customer-centric insights” in order to “help merchants and brands make better business decisions.” By monetizing a once free offering to CPG brands, however, it has many anxious about what that will mean for their own bottom lines and competitive edge upon the - currently undisclosed - launch. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |