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Response in adage to their article - Unileaver, Walmart, P&G Buck the Short-Term Trend
by
Administrator
July 1. 2009 03:23
P&G, Walmart and Unilever's investment in R&D innovation is money well spent, and it's why their dominance will only grow.
As retailers continue to cut SKUs to build up their private labels and find greater efficiencies in-store, innovation and proof of product are the only way new revenue streams will find their way into stores now and post recession. It's also how Walmart, as a retailer will remain relevant and keep its customers loyal.
P&G and Unilever have a lot to gain as smaller players are pulled off of shelves leaving more share to them. However, they themselves will have more streamlined portfolios, leading to greater efficiencies,
but without innovation, their margins will be squeezed further through SKU downsizing.
They must continue to find new ways to bring customer innovation to the shelves or they will be left with lead brands that will quickly become commodities fighting it out against private labels.
And the smaller players? They need innovation to survive.
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