With today’s consumers being more savvy than ever and the market competition being as fierce as it can get, brands have to face a range of challenges not just to be successful but to survive. However, a new report has revealed that many retailers are either unwilling, or incapable, of embracing change to meet consumer demand.
According to a recent study from recruitment firm Korn/Ferry Whitehead Mann, which polled 30 chief executives from retail and FMCG brands, while in general the respondents have a vision of what should be done in order to improve their performance, they have difficulties implementing their ideas in practice.
A more detailed look at the findings, quoted by the Warc website, shows that while their own organisation’s ideas for business growth were rated by brand leaders at 7.8 points out of a maximum of ten, the score reached a more modest level of 6.6 for the practical ways to achieve it.
Furthermore, over two-thirds of the retailers polled say they do not put aside money for research and development, while four in five lack a business unit or senior manager specifically appointed to deal with this area of business.
Surprisingly, only half of retailers were currently hiring new recruits and improving staff skills in the field. However, all of the FMCG brands were working on the matter, which suggests that they are ahead of the retailers when it comes to innovation.