Growth in High-Order Attributes Studies indicate shoppers are rewarding transparency. Seventy-four percent of shoppers claims they would switch to a more transparent brand (FMI & Label Insight - The Transparency Imperative). As evidence, brands with digital SmartLabel pages that enable digital labeling transparency have grown by 10.7% over the last 52 weeks in a number of categories that are either flat or declining. “Most major brands and retailers are losing share, volume, or margins, sometimes all three.” Gordon Wade, CatMan + Transparency
“When digital transformation is done right, it’s like a caterpillar turning into a butterfly, but when done wrong, all you have is a really fast caterpillar.” — George Westerman | Principal Research Scientist with the MIT Sloan Initiative on the Digital Economy Transparency bar is set The FMI and Label Insight Transparency Imperative report has clearly demonstrated that demand for more information in the grocery shopping experience is taking off. Almost all shoppers these days require more information in the shopping experience, and there’s been a 90% increase in shoppers who would switch brands based on level of transparency (74% in 2018 vs. 39% in 2016) which seems to indicate that the demand is growing in distribution and in intent.
“Transparency may be the most disruptive and far-reaching innovation to come out of social media.” — Paul Gillin in Digital Darwinism: Branding and business models in jeopardy Transparency crosses all generations We are constantly being reminded of the differences between generations, and in particular, how different the younger generation truly is. But when it comes to the demand for transparency, the recent FMI and Label Insight Transparency Imperative points out that there is actually little difference across generations.
You've heard it before: color has an impact on our mood and our appetite. Consumers have adjusted to years of evolving marketing tactics designed to draw shopper attention, build credibility, and communicate value. The problem is, not everyone can agree on what certain words mean. Take, for instance, "all natural flavor," "made with real cheese," or, my favorite, "made with love." While the legal definition of a "natural" flavor could mean a flavor essence or an actual juice derivative, a discerning parent just wants to know it's organic. Well, ok, but is it certified organic? We are here to help!
Transparency is here to stay. Recently the FMI & Label Insight Transparency Imperative report stated that over 86% of shoppers are more likely to trust a brand or retailer who provides complete and easy-to-understand definitions for all ingredients. And the same study demonstrated that 74% of shoppers would be willing to switch to another brand that provided more information – a 90% increase from 39% in 2016.
In the last post of this series, we discussed the need for a dynamic taxonomy to power search across the omnichannel experience. If this future was to exist, it would be interesting to understand what effect this would have on the concept of a single source of truth - the apparent holy grail of product data management. To explore this topic we will need to first cover where we are at right now in regards to maintaining a single source of truth for our product data. We can then consider the future needs which we discussed both here and here, with the aim of overlaying where we are at with where we need to go to see whether a single source of truth is viable going forward.
“One-third of American households have a family member who is dealing with allergies, intolerances or sensitivities.” — FMI & Label Insight - The Transparency Imperative Diet is the new norm
Static data standards: Over the last decade, there has been a lot of talk about a single source of truth and creating data standards to match. However, during this period we have seen data fragmentation at an unprecedented scale. For any single product, there are hundreds if not thousands of data endpoints all being powered by different data sources with different needs and different levels of accuracy and currency. To say that brands have lost control of their product data would be a dramatic understatement.
“Three quarters of shoppers in 2018 would switch brands for transparency - a 90% increase from 2016 ” — FMI / Label Insight The Transparency Imperative 2018
How Artificial Intelligence can make a difference at the grocery store With the advent of veganism, the keto diet, and the rise of severe food allergies in kids, it's no wonder that retailers and brands alike are looking for ways to stand out in the chaos that is grocery store aisles. Consumers have more choices than ever, but the complexities of modern packaging and labeling can confuse the decision-making process. That's where we come in.