Market Insights

Retail Case: Leveraging Distribution Opportunities Across Channels

by Jimmy Ho ¬ 03/14/2017

Brand performance is varied across channels. The differences in sales environment could have great impact on any business decision, including support on merchandising or pricing. The more we understand, the more likely we are to make the right decisions. Here are some surprising results from a recent nationwide floor cleaner audit in Hong Kong.

(Nationwide Floor Cleaner Audit in Hong Kong for 10 major floor cleaner brands, 100 stores: 45 Chain Supermarket, 25 Chain Drugstores, 30 Independent Drugstores)

• High potential to extend distribution of Floor Cleaner products at Chain Drugstores – Across the channels, 72% of the locations audited sell floor cleaner products. But, none of the Chain Drugstores is found to sell any floor cleaner products. Significant potential to extend distribution through this channel?

• Aside from the top brand, all the others show a significant drop in listing rate at Independent Drugstores – the top 3 brands hold the same ranking between Chain Supermarket and Independent Drugstores. But, the listing of all brands except 1st brand drop significantly at Independent Drugstores, with a difference up to 48% 

• Many locations are willing to stock a range of offerings, ranged from 4 SKU to 11 SKU – SKU level of Chain Supermarket is more than a double to Independent Drugstores

• Wide price gap for floor cleaner consistently across channels – For a 2-Lite floor cleaner product, the price would be ranged from HKD$ 22 to HKD$ 69.9. However, for the same product, there would be a price difference up to 26.8% across channels.

Floor Cleaner is always displayed at the bottom level and not always easy to be found. It is even worse at the Independent Drugstores – in many locations, only the top/ cap is visible – an opportunity to enhance brand awareness by having the brand name printed on the cap?

Using the latest retail audit technologies, it’s possible to quickly and easily compare SKU level performance metrics and access backup imagery for any location – all in real time. In a single glance, for any SKU, check; 

  • Stock levels/ OOS status
  • Current and/ or promotional pricing
  • Floor stacking, secondary display
  • …and any other metric of interest

Red Ocean Solutions – Real time Retail Audit and Intelligence from any Location.

Find out more here.