Market research and business intelligence firm IRI is calling on FMCG retailers and manufacturers to adopt a new standard for Big Data collaboration to 'redefine the way that data is shared'.
The group is suggesting that suppliers and retailers work more closely together on key marketing and operational tactics such as pricing, promotional strategies and assortment.
By optimising data intelligence, IRI says that the industry can improve practices and processes, and reduce the cost of marketing, driving profit growth for both the retail and manufacturing sectors.
“In a struggling retail environment with no growth in Western economies, retailers and manufacturers need to change drastically the way they operate or they will have a hard time to continue investing in innovations, driving consumers into their stores and generating sales with the right level of margin,” said José Carlos González-Hurtado, president of international at IRI.
“Instead of battling over price, they need to focus on the relatively untapped commercial advantage which they share: customer knowledge.”
He added that by combining retailers' understanding of shopper habits, and manufacturers' knowledge of brands and categories, the industry could create a personalised product offering for consumers.
Big Data collaboration focuses on three areas: data, analytics, and technology that makes it possible to deliver insight on what the customer wants.
“Creating a system or standard for the way that information is shared is the first step,” added González-Hurtado. "It would help overcome the barriers of data ownership, the sheer volume of data available and the data analytics skills required to mine it, as well as differing views of the customer. "
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.