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1、CONTINUOUSINNOVATION:THEKEYTORETAILSUCCESSCONTINUOUSINNOVATION:THEKEYTORETAILSUCCESSCopyright©2014TheNielsenCompany1CONTINUOUSINNOVATION:THEKEYTORETAILSUCCESSItisoftensaidthatretailneverstopsmoving.Retailhasalwaysservedaconsumerwhocravedmore,betterandcheap
2、er—andwaswillingtogowherevernecessarytogetit.Andwhileretailmaybarelyberecognizablesinceitsearliestdays,theneedtodifferentiatefromthecompetitionthroughinnovationisasgreatasiteverhasbeen.Nowonder.Theadventofe-commerceatatimewhenconsumersarefeelingsqueezedhas
3、createdaperfectstormforbricks-and-mortarretailers.Thisisahyper-competitivesharechase,inwhichthereareonlythreewaysforretailerstowin:drivingthenumberoftripsup,orgrowingthesizeofthebasket,orboth.Allthemoreurgent,then,thatretailersdevelopstrategiestorespondtot
4、hefactthatthegrowthofthenewe-commercechannelisboundtoshiftahigherpercentageoftripsonlineasthechannelmatures.Inasense,theurgencyofinnovationnowsimplyrepresentsanintensificationofaperennialchallenge.Innovationisalwayscrucialinaworldinwhichgroceryandmassretai
5、lersgenerallyofferthesameproductrangeastheircompetitors,andretailstoredensityinthedevelopedworldmakesswitchingeasy.Innovationcanprovideanedgeinanyoffivemajorcategoriesofretailshopperneed—convenience,choiceorassortment,shopabilityandprice-value,aswellasinwh
6、atretailerscandobeyondthestoretodrivebrandequity.Forabriefperiod,itcapturesconsumerinterestandattention,andsobringsinnewcustomersorimprovesloyaltyofexistingones.Butitisquicklyandeasilycopied.Therehasbeennosecretformulaandcertainlynothingthatcanbeprotectedb
7、ypatent.Consequently,foraretailertogroworstayahead,itmustinnovatecontinually.Thealternativeisaprice-basedracetothebottom.Inwhatfollows,wediscussthestateofinnovationinthesefivemajorareas.Weconcludewithaseparatesectionontheimportanceofdigital.Whilesomeofthee
8、xamplesofinnovationofferedherehavetodowithopportunitiesmadepossiblebythedigitalrevolution,digitalismorethansimplyanenablerofincrementalimprovement:itholdsthepromiseofchangingthelandscapeentirely,andretailersm