When it comes to price increases, trade spending, product assortment and fill rates, consumer packaged goods manufacturers\u2019 and retailers\u2019 strategies, plans and expectations don\u2019t always align, according to a recent survey of industry players by Advantage Solutions.<\/p>\n
\u201cManufacturer and Retailer Outlook: January 2023,\u201d based on more than 100 responses to surveys by consumer goods manufacturers and grocery retailers, found nearly half (46%) of surveyed manufacturers will increase their list prices in the first six months of 2023. More than one-fourth are still undecided.<\/p>\n
At the same time, nine in 10 retailers expect fewer price increases this year compared to last year \u2014 nearly half expect \u201csignificantly fewer.\u201d Just 2% of surveyed retailers expect somewhat more price increases; 8% expect a similar amount.<\/p>\n
As consumers contend with rising shelf prices and downsized packaging, nearly half (48%) of manufacturers have received at least one retailer request for a list price reduction. Fourteen percent report receiving requests from five to 10 retailers.<\/p>\n
Still, even if the cost of commodities related to their products falls, eight in 10 grocery manufacturers say they will not reduce their list prices. However, half will consider bumping up trade spending and another 20% will consider other alternatives such as investing in digital platforms. Only 4% say they\u2019ll reduce their list price by an amount commensurate with commodities.<\/p>\n
\u201cOn some subjects, grocery product manufacturers and retailers have dissimilar points of view and expectations and it\u2019s critical to understanding those differences so that both can approach business conversations knowing where opportunities for mutual benefit and closer alignment exist,\u201d said Jill Blanchard, president, client solutions for Advantage Solutions. \u201cAs consumer behavior and the marketplace evolves, manufacturers and retailers will always find areas where their individual goals align.\u201d<\/p>\n
These contrasting views highlight how shifts in the consumer product goods industry are being interpreted \u2014 and acted on \u2014 very differently by manufacturers and retailers alike.<\/p>\n","protected":false},"excerpt":{"rendered":"
When it comes to price increases, trade spending, product assortment and fill rates, consumer packaged goods manufacturers\u2019 and retailers\u2019 strategies, plans and expectations don\u2019t always align, according to a recent survey of industry players by Advantage Solutions. Survey Highlights Discrepancies in Pricing, Promotions, and Fill Rate Outlooks \u201cManufacturer and Retailer Outlook: January 2023,\u201d based on […]<\/p>\n","protected":false},"featured_media":2595,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"advantage360-category":[46],"class_list":["post-2597","advantage360-reports","type-advantage360-reports","status-publish","format-standard","has-post-thumbnail","hentry","advantage360-category-shopper-study"],"acf":[],"yoast_head":"\n