October 1, 2012 | Written by: Brian Eccles
Categorized: Industry Insights
Recently I had the good fortune to work a bit in Istanbul, Turkey. While there a really nice fellow name Ihsan guided a few of us on an impromptu market visit of local grocery shops and supermarkets. Formats include hard discounters, neighborhood shops, regional chains, national chains and an international player’s hypermarket. At the small end shops were maybe 2,000 ft2 with some hundreds of SKUs, while the high end were larger by an order of magnitude or more.
All of us left money in the local economy picking up snacks and sweets for souvenirs. We saw many familiar brands and many new ones which clamored for attention from the shelves. What was also apparent, if less obvious at first glance were the critical processes that CP companies face. Trade promotions, private label, out-of-stocks, and shelf space management were all visible. And while we didn’t see them at the shop level, I knew that distribution channel management, cross-border expansion, and building direct consumer interactions were all hot items.
Sometimes it seems like the more things change the more things stay the same. Despite economic, political, and technological changes galore, what we saw have been critical industry issues for many years, and there is no indication that they won’t be for many more.